Wednesday, August 21, 2019


Keybot the Quant remains long and has not printed a number since Monday. The algo is motoring along with the bulls in control with the algo number 28 points above the signal line. Retail stocks catapult higher especially HD, LOW and TGT, punching the bears in the face.

Bulls need stronger copper and banks and lower volatility to prove they have the beans to take the stock market higher. Bulls need CPER above 16.58 (now at 16.17) and/or VIX below 15.00 (now at 15.80). If the VIX loses the 15 level, the SPX will be racing towards 3K again. Copper futures need a +2.4% gain to make for happy bulls.

Bears need a lower NYA index and weaker chips. Bears need NYA below 12539 (now at 12697). This represents a -1.2% drop in the NYSE Composite. Bears need to push the VIX above 16, 17 and higher to prove that they can take equities lower.

The stock market will likely chop along sideways with a slight upward bias if CPER and VIX remain bearish and NYA bullish. If NYA loses 12539, the stock market will likely fall apart

8/25/19; 7:00 PM EST =
8/19/19; 10:11 AM EST = +28; signal line is 0

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.