Sunday, February 9, 2020

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long heading into the new week of trading. The quant has been very quiet ever since it flipped long last Tuesday. The bulls are in control of the stock market with the algo number 25 points above the signal line. The SPX prints an all-time high last week at 3348.

Bulls need lower volatility and the VIX below 13.85 to guarantee upside fun ahead for equities. Each day the VIX cannot move below 13.85 is a big plus for the bears.

Bears need weaker banks and the XLF below 30.30. Bears also need weaker chips and the SOX below 1828. If 1 of the 2 turn bearish, the caution flag will be out. If both flip negative, the imminent turn to the short side will be in play, and then if the SPX drops below 3322, about a 5 point loss, Keybot will likely flip short. Markets remain erratic and unstable.

Keybot prints one pre-scheduled number in the week ahead on Friday morning.

2/16/20; 7:00 PM EST =
2/14/20; 10:00 AM EST = 
2/9/20; 7:00 PM EST = +56; signal line is +31
2/7/20; 9:00 AM EST = +56; signal line is +30
2/4/20; 9:36 AM EST = +56; signal line is +29; go long 3288; (Benchmark SPX for 2020 = +1.8%)(Keybot algo this trade = -1.2%; Keybot algo for 2020 = +0.7%)(Actual trading results this trade = -1.2%; Actual trading results for 2020 = +7.8%)

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