Monday, August 31, 2020


Keybot the Quant remains long but is champing at the bit to go short. The S&P 500 did not drop enough for Keybot to turn. The S&P 500 prints a new all-time record high at 3514.77. The bears are pushing hard with the algo number 1 point below the signal line, which is bearish, however, the internal parameters will not yet fully latch to permit the move to the bear camp.

To keep it simple, if the SPX drops below 3493 and trends lower on Tuesday, 9/1/20, the first trading day of September, Keybot the Quant will likely flip short. The S&P 500 begins Tuesday at 3500 so the bears need -7 negative points overnight in the S&P futures and they will be dancing.

Bulls need higher utilities. UTIL popped to 809 and was spanked back to 803. VIX popped to 26.41 but the bears need 28.35 which is the bull-bear line in the sand identified by Keybot.

Keybot prints the pre-scheduled number this evening to lock in the data for the month of August. The algo did not print any numbers during the session.

If the SPX drops below 3493, Keybot will likely flip short. If VIX pops above 28.35, it is over for stocks, they will be dropping like rocks. Bulls need to prevent the S&P 500 from falling below 3493, prevent volatility from moving any higher and push utilities higher.

Looks like on Tuesday, we will probably see what the bears got, or don't got. Perhaps the blood will be flowing by Tuesday Afternoon.

9/6/20; 7:00 PM EST =
9/4/20; 9:00 AM EST =
8/31/20; 7:00 PM EST EOM = +50; signal line is +51 but algorithm remains long
8/30/20; 7:00 PM EST = +50; signal line is +50 but algorithm remains long

No comments:

Post a Comment

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