Thursday, August 27, 2020


Keybot the Quant remains long. The banks were goosed after Fed Chairman Powell flapped his dovish wings. Of course they were. The SPX prints a new all-time record high at 3501.38 and new all-time closing high at 3484.55 both on Thursday, 8/27/20. The S&P 500 prints above 3.5K for the first time in history. The 3.4K hats are tossed in the trash and the "SPX 3.5K" hats are handed out at Party Town, where the bulls are gettin' down, havin' fun and foolin' 'round.

The quant continues to idle along as stocks keep floating skyward. UTIL is at 800. Bulls need UTIL above 834 to prove that all the euphoric bullish upside in equities is correct and more record highs are on the way. Bears need UTIL under 744 this week, or 764 next week. On Monday, UTIL will begin the week 36 points away from wreaking serious multi-month stock market trouble. At the same time, UTIL will be 34 points away from the bullish confirmation at 834. Interestingly, the direction that UTIL pivots from 800 will be very telling.

If UTIL continues to leak lower, the stock market is in trouble. If UTIL begins floating higher and higher day after day, that tells you the bulls may be able to keep stocks elevated into year-end. If UTIL loses 764 next week, or 807 the week of 9/8/20 (US markets are closed on 9/7/20 for Labor Day), the stock market is toast and equities will trend lower into year-end. Note that UTIL price is already below 807.

Since Pope Powell pumped the banks higher, the bears will likely focus attention on jamming volatility higher and utes lower. Bears need VIX above 29 and if this occurs, and the SPX drops below 3468, Keybot will likely flip short. Teh pre-scheduled number prints tomorrow morning.

8/30/20; 7:00 PM EST =
8/28/20; 10:00 AM EST =
8/25/20; 10:00 AM EST = +50; signal line is +48

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