Thursday, October 1, 2020


Keybot the Quant remains long. The bulls are in charge of stock market direction with the algo number 39 points above the signal line. Commodities were pumped on hump day to create broad stock market gains. September is in the bag and October trading begins today. New money typically flows into the market to begin a month, especially a new quarter (Q4), creating buoyancy in equities. S&P futures are up +27 seven hours before the opening bell on Wall Street. Investors are also bulled-up on the hopes for a stimulus package. The US Monthly Jobs Report hits tomorrow so stocks may idle sideways waiting for that data.

Utilities and banks are the only two weak spots in the stock market. Bulls need UTIL above 826 and XLF above 24.26 to prove that there is more upside ahead for equities. XLF came up to test the 24.24-24.27 area yesterday and was repelled. Isn't it amazing the robot tells you these levels before they occur?

Bears need weaker commodities, utilities and copper and higher volatility; GTX under 1723.50, UTIL below 771, CPER below 18.37 and VIX above 27.18, respectively. Bears likely need three of these four to turn bearish to cause the model to flip short, however, if stocks begin selling off, chips and retail stocks may be dropping quickly.

Keybot prints two pre-scheduled numbers tomorrow morning one before the opening bell and one after. Follow the GTX 1723.50, VIX 27.18 and XLF 24.26 bull-bear lines in the sand that dictate stock market direction going forward.

10/4/20; 7:00 PM EST =
10/2/20; 10:00 AM EST =
10/2/20; 9:00 AM EST =
9/30/20; 7:00 PM EST EOM EOQ3 = +41; signal line is +2
9/30/20; 3:06 PM EST = +41; signal line is -1
9/30/20; 2:52 PM EST = +27; signal line is -4
9/30/20; 2:12 PM EST = +41; signal line is -7
9/30/20; 1:07 PM EST = +27; signal line is -11
9/30/20; 12:49 PM EST = +41; signal line is -14
9/29/20; 12:15 PM EST = +27; signal line is -17
9/29/20; 11:54 AM EST = +13; signal line is -19
9/29/20; 10:00 AM EST = +27; signal line is -23

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