Tuesday, April 4, 2017


Keybot the Quant remains short as the bull-bear battle continues. The algorithm prints one number thus far this week. The algo number is 6 points below the signal line. Bears will be victorious if VIX moves above 11.83 and/or RTH under 78.30. Bulls will rejoice if GTX moves above 2326 and/or XLF moves above 23.90. Thus, market bears need higher volatility and lower retail stocks while the bulls need higher commodities and banks.

The VIX sits at 11.79 essentially at the critical 11.83 bull-bear line in the sand; this 11.79-11.83 range can be considered a pivot point. As volatility goes, the broad stock market will go in the opposite direction.

If either GTX moves above 2326 or XLF above 23.90, either one would do, and the SPX prints above 2361, Keybot will likely flip long hence the imminent turn notation is in the title line. The behavior in volatility and in retail stocks will tell a lot about market direction on hump day.

4/9/17; 7:00 PM EST =
4/7/17; 9:00 AM EST =
4/4/17; 3:59 PM EST = +54; signal line is +60
4/2/17; 7:00 PM EST EOM EOQ1 = +40; signal line is +61
3/31/17; 3:57 PM EST = +40; signal line is +62

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