Sunday, August 13, 2017


Keybot the Quant remains short. The bears need weaker banks to prove they have the juice to send the stock market another leg lower. Bears need XLF under 24.63 (now at 24.73 only a dime above). On Friday, the financials fell to 24.67 only 4 pennies from the 24.63 called out by the algo but price bounced. XLF will tell you a lot about the stock market direction early in the new week of trading.

Market bulls are slapped around a little but not yet concerned about the tame pullback. Keybot is tracking volatility, chips and retail. Bulls need either VIX under 11.33, SOX above 1076 and/or RTH above 80.77. Any one of these three will stop all market selling and begin a relief rally. If 2 of the 3 turn bullish, Keybot may be in position to move to the long side again.

Lots of retail earnings this week will toss the RTH to and fro. Watch the chips. If SOX moves above 1076, stocks are going to begin rallying higher. Bears need to stab the banks in the heart with XLF 24.63 if they want to create serious stock market selling.

Keybot prints two pre-scheduled numbers this week one on Wednesday morning and the other on Friday morning. The bears are cruising with the algo number 32 points below the signal line.

8/20/17; 7:00 PM EST =
8/18/17; 10:00 AM EST =
8/16/17; 9:00 AM EST =
8/13/17; 7:00 PM EST = +53; signal line is +85
8/10/17; 10:07 AM EST = +53; signal line is +86

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