Wednesday, August 9, 2017


Keybot the Quant remains long. The banks and retail stocks are buoyant to begin the week slapping the bears in the face. In the Tuesday trade, volatility spikes higher due to North Korea tensions. Keybot was ready to flip short but did not. Volatility is higher this morning so the algo will want to flip short again after the opening bell for the regular trading session.

The key is likely the SPX 2470.32 LOD from yesterday. If this is taken out and price holds below here for several minutes, and then begins moving lower, Keybot will likely flip short, hence the imminent turn is in play. Bears have it on a silver platter if they can create about 5 points of downside. The S&P futures are down 11 as this message is typed.

Gap down moves are tricky since the algo may not bite on the short side if prices fall like a rock in the first few minutes. Pay attention to the low prints in the SPX as they occur today. Bears will growl and the upside rally is over as long as the VIX remains above 11.16.

8/13/17; 7:00 PM EST =
8/8/17; 3:45 PM EST = +99; signal line is +88
8/8/17; 3:38 PM EST = +85; signal line is +87 but algorithm remains long
8/6/17; 7:00 PM EST = +99; signal line is +87

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