Thursday, August 30, 2018

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algorithm finally comes to life this week printing three numbers during Thursday afternoon. The bulls remain in control with the algo number 8 points above the signal line. Volatility moves into the bear camp which creates the downdraft in stocks.

Bears need either GTX under 2710 and/or XLF under 27.79 to create market mayhem. If either parameter flips bearish, consider the imminent turn to the short side to be in play for Keybot.

Bulls need the VIX below 13.39 and/or JJCTF above 30.94 to resume the upside rally in the stock market. Volatility is the key parameter. Bears win big if the VIX remains above 13.39 and heading higher. Bulls win big if VIX slips back below 13.39.

In general, bulls win with lower volatility and higher copper while bears win with weaker commodities and banks. Keybot prints a pre-scheduled number one-half hour after Friday's opening bell.

9/2/18; 7:00 PM EST EOM =
8/31/18; 10:00 AM EST =
8/30/18; 3:01 PM EST = +70; signal line is +62
8/30/18; 2:39 PM EST = +84; signal line is +61
8/30/18; 2:28 PM EST = +70; signal line is +60
8/28/18; 10:00 AM EST = +84; signal line is +59

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