Friday, August 14, 2020


Keybot the Quant remains long. The bulls are in charge of the stock market direction with the algo number 7 points above the signal line. Utilities keep oscillating above and below the key UTIL 835.50 bull-bear line in the sand. Copper retreated yesterday but not enough to entice the model to flip short.

Bulls must push UTIL above 835.50 to prove they are still the big shots and in full control of stock market direction to the upside.

Bears need to keep UTIL below 835.50 and in general keep moving utes lower. Bears also need weaker commodities and copper; either CPER below 17.24 and/or GTX below 1703. This represents a -1.5% drop in copper futures and a -3.3% drop in commodities. Copper appears to be the bears meal ticket but it is trading up +0.3%. Bears now need a -1.8% drop in copper from current prices to entice the quant to flip short (copper was up +0.7% an hour ago).

If copper turns bearish, consider the imminent turn to the short side to be in play and if the SPX is below 3363 trending lower, Keybot will likely flip short. S&P futures are down -18 about  4-1/2 hours before the opening bell on Wall Street. VIX is climbing higher to 23.49. Keybot prints a pre-scheduled number shortly after the opening bell.

8/16/20; 7:00 PM EST =
8/14/20; 10:00 AM EST =
8/13/20; 10:34 AM EST = +53; signal line is +46
8/13/20; 10:18 AM EST = +69; signal line is +45
8/13/20; 9:36 AM EST = +53; signal line is +45
8/12/20; 11:29 AM EST = +69; signal line is +45
8/11/20; 10:07 AM EST = +53; signal line is +43

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