Tuesday, August 11, 2020


Keybot the Quant remains long as the stock market euphoria continues. Every day is a par-tay. The bulls pumped copper higher in the Monday trade while crushing the VIX creating buoyancy in equities. The algo did not print any numbers on Monday. The bulls remain in control with the algo number 26 points above the signal line.

The bulls are cruising along without a care in the world so it will be interesting to see what makes the direction change as time moves along. Bears must focus on pushing utilities, commodities and copper lower if they want to stop the big stock market rally.

Bears need UTIL below 835.52, GTX below 1701 and/or CPER below 17.30. Utes need to lose about -0.7% and the commodities and copper need to lose -3.0% and more to create stock market negativity. Copper is trading down -0.2% currently. The bears likely need 2 of these 3 parameters to turn bearish to flip the model short. If one parameter turns bearish, the caution flag will be out. If 2 turn bearish, the imminent turn to the short side will be in play and if this occurs today, Tuesday, and the SPX drops below 3335, Keybot will likely flip short. It is a tall order for the bears.

S&P futures are up +21 about 5 hours before the opening bell. VIX 21.38. The bulls do not want the party to end. Pay attention to the UTIL 835.52 bull-bear line in the sand since it not only tells you a lot about stock market direction now but also how the year will end.

8/16/20; 7:00 PM EST =
8/14/20; 10:00 AM EST =
8/9/20; 7:00 PM EST = +69; signal line is +43

No comments:

Post a Comment

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