Tuesday, January 26, 2021


Keybot the Quant remains short as the bulls and bears fight over utilities and volatility dictating the path ahead for the stock market. The bears are in charge with the algo number only 6 points below the signal line.

Bears need VIX above 24.60 to wreak havoc in markets and volatility will begin trading shortly from VIX 23.19. Weaker banks and copper will also create market carnage. Bears need XLF below 29.23 and CPER below 21.75. Both of these parameters reflect about a -3% drop. Copper futures are down more than -1% currently so another couple percent lower in copper is going to cause trouble for the US stock market.

Bulls are hanging their hat on utes. Bulls must push UTIL above 884.52. UTIL jumped strongly higher yesterday and sits at 872 within striking distance. Utilities typically move higher as yields move lower. Bulls will throw confetti if UTIL moves above 884 since stocks will begin rallying again. Consider the imminent turn to the long side to be in play for the quant if you see UTIL pop above 884.

Bears win big and stock market ugliness will appear if VIX moves above 24.60. Bulls win big and stocks will stabilize and begin moving higher if UTIL moves above 884. Keybot prints a pre-scheduled number this morning shortly after the opening bell.

1/29/21; 10:00 AM EST =
1/26/21; 10:00 AM EST =
1/25/21; 12:40 PM EST = +51; signal line is +57
1/25/21; 12:28 PM EST = +37; signal line is +57
1/25/21; 11:49 AM EST = +51; signal line is +58

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