Sunday, November 4, 2018


Keybot the Quant remains short as the wild and volatile market price action continues. Keybot almost flipped long on Friday but equities petered out as the day played out. The algo number is only 8 point below the signal line.

The bears are in the driver's seat with the SPX below 2749 (now at 2723 where the new week of trading will begin). Bulls need SPX above 2749 and each day they fail is another long-term nail in the bull coffin. If SPX moves above 2749, consider the imminent turn to be in play, and if the SPX then moves above 2756, Keybot will likely flip long.

The bears need weaker utilities and copper to take stocks another leg lower. Bears need UTIL under 721.60 (now at 725) which will create market mayhem. Write the number down since it is applicable for every day this week. If UTIL falls below 709 this week, stocks could go into free fall. Bears will also benefit if CPER drops below 17.37 (now at 17.64).

Keybot prints one pre-scheduled number this week on Friday. Bears need lower utilities and copper. Bulls need SPX above the 2749-2756 gauntlet to create a very strong upside relief rally and flip the algo long.

11/11/18; 7:00 PM EST =
11/9/18; 10:00 AM EST =
11/4/18; 7:00 PM EST = -4; signal line is +4
11/2/18; 10:01 AM EST = -4; signal line is +5
11/2/18; 9:42 AM EST = +10; signal line is +6 but algorithm remains short
11/2/18; 9:36 AM EST = -4; signal line is +6
11/2/18; 9:00 AM EST = -20; signal line is +7
10/31/18; 7:00 PM EST EOM = -20; signal line is +8

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