Thursday, July 30, 2020


Keybot the Quant is on the short side but the algo is champing at the bit to go long. The bears are in charge but the algo number is 11 points above the signal line. The quant wants to flip long but the internal parameters will not yet fully latch to permit the move. Hence, the imminent turn notation is in the title line.

Markets are whipsawing this week. Keybot the Quant will likely flip long tomorrow if the SPX takes out the 3250-3254 area (the robot will probably want to see the SPX above 3254 during the first 15 minutes of trading and then above 3251 would be good enough for the bulls for the remainder of the day). The SPX begins Friday at 3247. The bulls have it on a silver platter if they want it and the tech earnings appear positive thus far this evening to perhaps boost stocks tomorrow.

If a large gap-up opening occurs tomorrow morning, this is not good for bulls. It may trigger a timer that forces the algorithm to not flip long but instead wait about 90 minutes time for the market to settle. Ideally, the bulls need stocks to simply slowly float higher and higher tomorrow and that will probably flip Keybot long.

Bears need UTIL below 824, NYA below 12452, GTX below 1690 and/or XLF below 23.55. Bears must pull one of these parameters into their camp fast or they will be beaten silly by the bulls. If you are bearish, hang your hopes on UTIL 824 for tomorrow morning, if UTIL remains above, you lose, but if UTIL loses 824, and then trends lower all day moving towards 8 hundo, this will spell serious trouble for the stock market going forward.

At the opening bell tomorrow morning, the bulls need SPX to gradually move into and above the 3250-3254 area to flip Keybot the Quant to the long side and signal happy bullish times ahead. The bears need UTIL below 824 as soon as possible which will immediately create stock market sogginess. Watch these two parameters like a hawk since they will tell you the stock market direction forward. The pre-scheduled number prints one-half hour after the opening bell.

8/2/20; 7:00 PM EST EOM =
7/31/20; 10:00 AM EST =
7/30/20; 2:42 PM EST = +53; signal line is +42 but algorithm remains short
7/30/20; 1:36 PM EST = +37; signal line is +43

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