Sunday, March 5, 2017


Keybot the Quant is on the short side to begin the new week of trading. The market bulls staged a come back on Friday afternoon sending GTX (commodities) above the important bull-bear line in the sand at 2366.87 now printing at 2367.07. This sets up the algo to potentially whipsaw back to the long side so Monday will be an important day.

The market bears need GTX under 2366.87 and it will be smooth sailing lower for the stock market. VIX (volatility) above 12.80 will fan the flames of negativity causing another drop in the stock market. Ditto if JJC (copper) falls under 30.50.

If the SPX touches the 2384 handle and moves higher, Keybot will likely flip back to the long side but the move to the long side may not occur until around 10 AM EST Monday unless the SPX moves above 2402 during the first one-half hour of trading. The bulls would benefit from a slow move higher in stocks since a gap-up move in price at the opening bell may delay the move to the long side for the first 90 minutes of trading.

For Monday with the SPX starting at 2383, the bulls only need one point, to push above 2384, and this will accelerate a move higher and likely cause Keybot to jump back on the long bandwagon. Thus, watch the S&P futures overnight to see if any smidge of positivity occurs since this likely indicates a happy Monday for bulls. The bears need to keep the S&P futures negative and push the SPX under 2375 which will create a downward acceleration in stocks. A move through 2376-2383 is sideways action to begin the week.

Keybot prints one pre-scheduled number this week on Friday morning. GTX 2366.87 and SPX 2384 tell you what you need to know for Monday's stock market direction.

3/12/17; 7:00 PM EST =
3/10/17; 9:00 AM EST =
3/5/17; 7:00 PM EST = +100; signal line is +93 but algorithm remains short
3/3/17; 3:35 PM EST = +100; signal line is +93 but algorithm remains short
3/3/17; 9:59 AM EST = +86; signal line is +93; go short 2379; (Benchmark SPX for 2017 = +6.3%)(Keybot algo this trade = +3.8%; Keybot algo for 2017 = +0.7%)(Actual results this trade = +3.9%; Actual results for 2017 = -2.9%)

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