Friday, May 19, 2017


Keybot the Quant is on the short side but the bulls are staging a comeback. The algo has not printed any numbers since it went short on Wednesday. Interestingly, the rally action after the Wednesday selloff in stocks does not result in the algorithm printing any higher numbers, so far.

That may change at anytime and Keybot is tracking several key parameters. The upside rally will be confirmed and have legs if XLF moves above 23.59, or VIX below 11.76, or JJC above 29.50 or GTX above 2289. So bulls need higher banks, lower volatility, higher copper and higher commodities. If all four remain bearish, the stock market rally will likely peter out and roll over to the downside.

If one of the four turn bullish, Keybot may be in position to flip back to the long side. Market bears must hold the line on the four parameters listed.

5/21/17; 7:00 PM EST =
5/17/17; 9:57 AM EST = +40; signal line is +56; go short 2376; (Benchmark SPX for 2017 = +6.1%)(Keybot algo this trade = +0.0%; Keybot algo for 2017 = -0.1%)(Actual results this trade = +0.2%; Actual results for 2017 = -4.3%)

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