Wednesday, May 24, 2017


Keybot the Quant remains long as the intense market drama continues. Keybot prints an astounding and rare +100 number representing the maximum possible reading for the algorithm (which is an oscillator at its heart). A +100 number represents an off-the-charts uber bullish stock market and likely a significant multi-week, month and/or year top forming.

Comically, the rare +100 number is becoming more and more common. The times that +100 has printed over the near 9-year life of the model is six times; 12/19/16-12/25/16; 1/17/17-1/19/17; 1/31/17; 2/10/17-3/5/17; 4/15/17 and now. Just think, at some point in the future, maybe two or three years down the road, the algo may be printing at -100.

Copper, financials, volatility and commodities continue to rule the roost and dictate broad stock market direction. Note that JJC closed exactly on the 29.47-29.48 level called out by the algorithm before it happened. That is always impressive when it happens with regularity. The banks turned bullish with XLF above 23.55 which created yesterday's rally. Obviously. the pivot from JJC 29.47 dictates market direction. Copper trades lower overnight. The banks, the XLF 23.55 level, remains key as well.

The market bears will benefit if VIX moves above 11.81 (now at 10.49) and/or GTX below 2291 (now at 2301). The key is copper and banks. Bulls will be taking stocks far higher with the SPX running above 2400 if JJC moves above 29.48 and XLF stays above 23.55 with both moving higher.

If JJC dips under 29.47 and moves lower, the stock market rally will stall. If XLF slips under 23.55, stocks will begin selling off more aggressively. The beat goes on.

5/28/17; 7:00 PM EST =
5/26/17; 10:00 AM EST =
5/23/17; 3:09 PM EST = +84; signal line is +65
5/23/17; 2:28 PM EST = +100; signal line is +63
5/23/17; 2:16 PM EST = +84; signal line is +62
5/23/17; 9:36 AM EST = +68; signal line is +59
5/22/17; 1:18 PM EST = +84; signal line is +58

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