Sunday, June 11, 2017


Keybot the Quant remains long despite Friday's turmoil and drama. Friday's wild price action was likely due to algorithms gone mad. Price levels were triggered in the tech stocks and the selling accelerated and that money rotated into the retail and bank stocks. Keybot did not print any numbers on Friday. The bulls remain in the driver's seat.

Volatility is currently the top parameter most impacting broad stock market direction. The VIX is at 10.70. The market bears need the VIX to print above 11.64 to create substantive stock market selling. Although higher volatility will stall the market rally, the downside would be limited and Keybot will likely not flip short. Watch to see if the VIX jumps above 11.64, then after a short while comes back below 11.64, then after a short while back above 11.64, this jogging action will hint that a move to the downside for the stock market and higher volatility is at hand.

Market bears also benefit from lower copper. Bears need JJC under 29.40 and it begins the week at 30.02. A combo of lower copper and higher volatility will smack the stock market sharply lower.

Bulls will remain on easy street if the VIX remains under 11.64. Market bulls will benefit if commodities move higher. Bulls need GTX above 2267 now at 2158.

Keybot prints two pre-scheduled numbers this week on Friday one before the opening bell and one shortly after. The epic market event this week is the Federal Reserve rate decision and forecasts, and Chair Yellen press conference, on Wednesday afternoon. The market price activity may be historic.

6/18/17; 7:00 PM EST =
6/16/17; 10:00 AM EST =
6/16/17; 9:00 AM EST =
6/11/17; 7:00 PM EST = +86; signal line is +72
6/8/17; 10:05 AM EST = +86; signal line is +71

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