Tuesday, August 14, 2018

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the stock market rallies today (Tuesday). The algo is active this week printing five numbers yesterday and three today. The algo number is 13 points below the signal line indicating that the bears are running the show.

The bulls were trying to push chips, SOX, above the important 1361.50 but did not have enough gusto. If SOX moves above 1361.50 (now at 1354.19), consider the imminent turn to be in play, and if the SPX then moves above 2843, Keybot will likely flip long.

The bears need to push the VIX above 14.15 (now at the 13.31 palindrome) and/or the NYA below 12740 (now at 12835) to send the stock market lower. Thus, for hump day, the bulls need stronger chips while the bears need higher volatility and/or a lower NYA index. These three parameters currently dictate the broad stock market direction. The beat goes on.

8/17/18; 10:00 AM EST =
8/16/18; 9:00 AM EST =
8/14/18; 9:55 AM EST = +54; signal line is +67
8/14/18; 9:36 AM EST = +70; signal line is +68 but algorithm remains short
8/14/18; 3:00 AM EST = +54; signal line is +68
8/13/18; 2:39 PM EST = +40; signal line is +69
8/13/18; 2:31 PM EST = +56; signal line is +70
8/13/18; 11:57 AM EST = +40; signal line is +71
8/13/18; 11:25 AM EST = +54; signal line is +72
8/13/18; 9:48 AM EST = +70; signal line is +72
8/12/18; 7:00 PM EST = +54; signal line is +72

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