Tuesday, July 4, 2017


Keybot the Quant remains short on this Independence Day holiday. US markets are closed today. You saw UTIL fall under 705.95 yesterday and the bearish parameters mentioned in the prior post remained bearish so you knew the stock market rally early in the day would fade, and it did. Utilities, commodities, retail stocks and volatility are key for Wednesday when the US markets resume trading.

The market bears need VIX above 11.57 (now at 11.22) and the stock market will collapse.

Market bulls need either UTIL above 705.95 (now at 703.36), GTX above 2220 (now at 2201) and/or RTH above 81.11 (now at 80.37). If any one of these 3 parameters turn bullish, the stock market will float higher and consider the caution flag to be out. If 2 of the 3 turn bullish consider the imminent turn to be in play.  If 2 of the 3 turn bullish and the SPX moves above 2439, Keybot will likely flip to the long side.

Bears need higher volatility and they will make the bulls squeal. Bulls need higher utes, commodities and retail stocks to stage a relief rally and crush the bear's hopes. The algo number is 22 points below the signal line. The beat goes on. Now back to grilled hotdogs and hamburgers, apple pie and fireworks.

7/16/17; 7:00 PM EST =
7/9/17; 7:00 PM EST =
7/7/17; 9:00 AM EST =
7/3/17; 11:31 AM EST = +38; signal line is +60
7/2/17; 7:00 PM EST EOM EOQ2 EOH1 = +54; signal line is +61

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