Thursday, March 30, 2017


Keybot the Quant remains on the long side with markets chopping sideways. The algo did not print any numbers on Wednesday. Market bulls will win big and guarantee far more upside if XLF moves above 23.93. Market bears will stop the relief rally in the stock market by pushing JJC under 30.44, RTH under 78.21 and/or VIX above 11.85. Any one of the three parameters will stop the rally. If 2 or all 3 turn bearish, stocks will be falling like a rock. If one of these three parameters turn bearish, and the SPX drops under 2353, Keybot will likely flip back to the short side, hence the imminent turn notation is in the title line.The beat goes on.

4/2/17; 7:00 PM EST EOM EOQ1 =
3/31/17; 10:00 AM EST =
3/28/17; 3:57 PM EST = +70; signal line is +69; go long 2361; (Benchmark SPX for 2017 = +5.5%)(Keybot algo this trade = +0.8%; Keybot algo for 2017 = +1.5%)(Actual results this trade = +1.4%; Actual results for 2017 = -1.5%)

Note Added 11:30 AM EST: Stocks are rallying higher with the SPX up 8 points to 2369. The XLF is at 23.89. The algo identifies 23.95 as the key bull-bear line in the sand. So the rally means nothing unless  the banks strengthen and XLF moves above 23.95. The market bulls need another 6 pennies to prove they have the beans to take the stock market higher. Bears must prevent XLF from printing 23.95 with all their might. XLF moves higher now 23.91, the HOD, .........

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