Monday, August 5, 2019


Keybot the Quant remains short. Parameters such as banks, retail stocks and commodities have failed into the bear camp along with the upward spike in volatility. The bulls are hanging their hats, and hopes, on chips to save the day.

The bears are cruising along in full control with the algo number 40 points below the signal line. Keybot prints two numbers on Friday; both were pre-scheduled so the actual price action in the stock market was benign to end last week.

S&P futures are tanking 34 points, and were down over 40 a couple hours ago, with the VIX tagging 21, about 3-1/2 hours before the opening bell for the regular Monday US trading session.

The battle is banks versus chips; it is that easy. Bulls need semiconductors (SOX) to remain strong while sending XLF above 27.72 (now at 27.60). If banks flip back into the bull camp, the stock market selling will immediately stop and a small relief rally is likely.

Bears need to keep the financials (XLF) weak while sending the SOX below 1477 (now at 1488). If the chips flip bearish, the stock market is in serious trouble and the market carnage will continue.

Keybot does not print any pre-scheduled numbers this week. Watch XLF 27.72 and SOX 1477 since these two parameters dictate stock market direction ahead. The beat goes on. 

8/11/19; 7:00 PM EST =
8/4/19; 7:00 PM EST = +12; signal line is +52
8/2/19; 10:00 AM EST = +12; signal line is +54
8/2/19; 9:00 AM EST = +12; signal line is +56
8/1/19; 2:26 PM EST = +12; signal line is +58

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