Keybot the Quant is on the long side but champing at the bit to go short. The internal parameters will not yet fully latch to permit the move. Friday trading saw a dramatic reversal to the upside for stocks led by semiconductors, financials and commodities. These three parameters are most greatly impacting broad stock market direction currently. The chips and banks, however, jump back into the bear camp at Friday's closing bell so the algo wants to flip short again. The price action is choppy and erratic.
If the SPX, starting at 2426, loses 5 points, and prints under 2421, Keybot will likely flip back to the short side, hence the imminent turn is in play. The bears need negativity in the commodities, and for GTX to fall under 2215.80, which will seal the deal with more downside losses for stocks ahead.
The bulls need SOX above 1074.20 and/or XLF above 24.65, which are only pennies from current levels, either one would do, to rally stocks higher.
Thus, bears need SPX under 2421 and GTX under 2215.80 to claim victory while the bulls need SOX above 1074 and XLF above 24.65 to take stocks higher. Keybot does not print any pre-scheduled numbers this week. The algo is on the long side but the algo number is 25 points under the signal line clearly wanting the model to flip short.
8/27/17;
7:00 PM EST =
8/20/17; 7:00 PM EST
= +38; signal line is +63 but algorithm remains long
8/18/17; 3:56 PM EST
= +38; signal line is +65 but algorithm remains long
8/18/17; 3:23 PM EST
= +54; signal line is +67 but algorithm remains long
8/18/17;
2:18 PM EST = +70; signal line is +68
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