Keybot the Quant flips into the bull camp this morning shortly after the opening bell at SPX 3360. The bulls have been trying to hoist the slippery chips higher this week, and now succeeded, along with pumping retail stocks and banks higher; a trifecta of bull glory.
Today is the US Presidential Election Day, 11/3/20. Vote early and often, as the saying goes. Humorously, America chooses between two corrupt silver-haired white guys. The stock market may whipsaw in the coming days as election results are finalized. Perhaps the winner will be known around midnight tonight.
Bulls need stronger commodities and lower volatility to send stocks higher. Bulls need GTX above 1723 and this is what they are gunning for right now.
Bears need weaker retail stocks, banks and chips, which will likely fail in that order. Bears need RTH below 148.30, XLF below 24.58 and/or SOX below 2261. Any 1 of the 3 slipping into the bear camp will immediately halt the upside rally. If 1 of the 3 turn bearish, consider the imminent turn to the short side in play, and then if the SPX drops below 3280-ish (a long way down), Keybot will likely flip short. Thus, stocks may stumble along sideways until the existing or new king is crowned in America.
On the last trade that ran for a week, the algo program gains nearly +2% and the actual trading gains +1.4%. For the year, the statistics are all whole numbers which is interesting. The benchmark S&P 500 is up +4% in 2020 while the quant program gains +24% and the actual trading generated by the robot is up +44% this year thus far. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's. The world awaits the election results. Is King Donnie Trump the winner or Sleepy Joe Biden?
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