The bulls are in charge with the algo number 31 points above the signal line. One of the few negative parameters in the Keybot model is that the quant continues to signal a housing recession has begun despite the market joy.
The Federal Reserve's Q4 money-pump creates the distortions in pricing over the last couple months. Utilities sky-rocket higher, so, as explained a week or so ago, that is a major win for the bulls in the intermediate and long-term ahead. However, when stocks roll over and die, watch the utes, since if they drop along with stocks and continue lower in tandem that will signal an extended bear market ahead for equities. If utilities remain elevated when stocks retreat, that will indicate that the stock market should hold up well for much of next year. For now, everyone is fat, dumb and happy, eating holiday food, drinking Fed wine and celebrating the Power and Majesty of the Fed.
Parameters are pegged into the bull market ceilings. Bears may have some hope in stopping the never-ending upside stock market records if volatility spikes higher or if retail stocks, commodities and/or utilities drop lower. Bears need VIX above 14.84 and/or RTH below 118.57. A drop of -3% and more for commodities and utilities will also help the bear case. Other than that, the bulls rule as 2019 ends and 2020 begins soon.
Keybot does not print any pre-scheduled numbers this week. The stock market is closed on Wednesday for Christmas and Tuesday, Christmas Eve, is an early close at 1 PM EST. Markets remain erratic and unstable.
12/29/19;
7:00 PM EST =
12/22/19;
7:00 PM EST = +88; signal line is +57
12/20/19;
10:00 AM EST = +88; signal line is +55
12/17/19; 9:00 AM EST = +88; signal line is +54
12/17/19; 9:00 AM EST = +88; signal line is +54
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