Sunday, January 24, 2021


Keybot the Quant remains long. The crazy price action continues. It's a Wild Wild Life. These are epic times. The robot has remained long for four days despite wanting to flip short with the algo number 9 points below the signal line. The internal parameters will not fully latch as yet to permit the move. This activity has only happened once, maybe twice, in the entire history of the quant (going four days wanting to flip but it does not). The price action remains erratic and unstable and probably historic.

The bears have it on a silver platter if they want it. If the SPX drops below 3830 trending lower, Keybot the Quant will likely flip short. It does not get simpler than that. The S&P 500 begins at 3841 so bears only need 11 points. They better eat their Wheaties tomorrow morning.

The bulls must push UTIL above 885 starting at the 858 palindrome. This is a formidable task and each minute it does not occur is another nail in the bull coffin.

Bears need VIX above 24.78 to begin market carnage. VIX starts at 3 AM EST at 21.91. The wheels will fall off the stock market at 24.78 but if bulls keep volatility under this level, they will not be too worried. Weaker copper would also help the bears.

Bears win big if SPX falls below 3830 since the quant will likely flip short. Bulls need UTIL above 885 to prove that they can take the stock market higher this year. Bears need VIX above 24.78 where stocks will be selling off in earnest.

Keybot prints two pre-scheduled numbers this week one on Tuesday morning and the other on Friday morning. The month of January trading ends on Friday with the calendar ending on Sunday. February trading begins on Monday, 2/1/21, 2121, one week from tomorrow.

SPX 3830 and VIX 24.78 will tell the market story on Monday. If stocks sell off early and it looks like it has downside legs, make sure VIX is above 24.78, otherwise, stocks will recover and become buoyant again.

1/31/21; 7:00 PM EST EOM =
1/29/21; 10:00 AM EST =
1/26/21; 10:00 AM EST =
1/24/21; 7:00 PM EST = +51; signal line is +60 but algorithm remains long
1/21/21; 9:00 AM EST = +51; signal line is +61 but algorithm remains long

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