Wednesday, October 7, 2020


Keybot the Quant remains long and prints 7 numbers in the Tuesday session. These are wild markets. The quant has been going nutso lately spitting out numbers left and right. Tuesday was another choppy session. The bulls started to run stocks higher on stronger copper and commodities in the afternoon but President Trump cancelled stimulus talks which tanked the stock market.

The move lower in stocks and futures is muted since traders know that the president is likely bloviating as usual and sure enough, only hours later, Trump is talking about $1,200 stimulus checks for Americans and more bailout stimulus money for airlines (huge layoffs coming if stimulus is not provided). S&P futures are +18 with the VIX remaining elevated at 29.56. Both futures and volatility are higher right now so one of them is wrong.

The bulls are in charge of stock market direction with the algo number 7 points above the signal line. Bulls are receiving strength from commodities and must keep GTX above 1718. Bulls need CPER above 18.33 and VIX below 27.22 to create upside joy in equities. Watch commodities, copper and volatility.

Bears need copper and volatility to remain in their camp and to pull GTX below 1718 to get commodities back in their camp. This will send stocks south and potentially flip the model short. Bears also benefit from weaker banks if XLF drops below 24.30. If commodities or banks, or retail stocks for that matter, fail, consider the imminent turn to the short side to be in play, and if the SPX then moves below 3354 trending lower, Keybot will likely flip short. Markets remain erratic and unstable.

10/11/20; 7:00 PM EST =
10/6/20; 2:16 PM EST = +43; signal line is +30
10/6/20; 1:32 PM EST = +59; signal line is +30
10/6/20; 12:50 PM EST = +43; signal line is +29
10/6/20; 12:42 PM EST = +59; signal line is +29
10/6/20; 11:09 AM EST = +43; signal line is +27
10/6/20; 10:42 AM EST = +59; signal line is +27
10/6/20; 9:36 AM EST = +43; signal line is +26
10/5/20; 2:59 PM EST = +29; signal line is +25; go long 3399; (Benchmark SPX for 2020 = +5.2%)(Keybot algo this trade = -2.0%; Keybot algo for 2020 = +21.5%)(Actual trading results this trade = -1.0%; Actual trading results for 2020 = +41.2%)

No comments:

Post a Comment

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