Friday, January 22, 2021


Keybot the Quant remains long but continues champing at the bit to go short all week long. The internal parameters will not fully latch to permit the move as yet. Sometimes it is like herding kittens. Several parameters will be latched but by the time the last few fall into place, one of the others has unlatched and wandered off. The bears remain in charge of stock market direction with the algo number 10 points below the signal line, despite the rise in equities the last couple days back to the record highs.

If the SPX drops below 3845, Keybot the Quant will likely flip short, hence the imminent turn notation in the title line. The SPX begins at 3853. S&P futures are down -25 with the VIX at 23.00. The bears would be better off with a slow down move. The gap-down move will likely trigger a timer that will not allow the quant to flip short for about 90 minutes. There are several moving parts so Keybot will do what it does; it may be an interesting morning ahead.

If VIX moves above 24.76, stocks will fall apart. Bears will also benefit from weaker copper.

Bulls are unable to move UTIL above 876 this week which leads into the sogginess as the week ends. It does not get easier for the bulls. Next week the 876 number is meaningless and replaced by 884.52 call it 885. Bulls must push UTIL above 885 by 4 PM EST today or more weakness will enter into the stock market next week. UTIL begins Friday at the 858 palindrome. If UTIL drops in earnest and falls through 825, the stock market will probably crash. Today may be a very interesting day.

1/24/21; 7:00 PM EST =
1/21/21; 9:00 AM EST = +51; signal line is +61 but algorithm remains long
1/19/21; 9:36 AM EST = +51; signal line is +61 but algorithm remains long

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