Tuesday, February 2, 2021


Keybot the Quant remains long and prints 5 numbers today. The quant is champing at the bit to flip back to the short side but the internal parameters will not yet fully latch to permit the move. The odd price behavior continues. Copper fails into the bear camp but stocks rally; historic weirdness. The VIX comes down to test Keybot's bull-bear line in the sand but could not move below. Tomorrow will tell the tale. It is a knock-down drag-out bull-bear battle.

Keybot the Quant wants to flip short and will likely do so if the SPX falls below 3792 trending lower. SPX begins hump day at 3826 so bears will need to see S&P futures down -34 points and they will be good to go.

Copper and volatility will immediately tell you the story for hump day. Both are in the bear camp but only by pennies. The bulls need CPER above 21.76 and/or VIX below 25.02. The bulls will celebrate good times with one of these and two would be an upside orgy for the record books.

If both CPER and VIX remain in the bear camp, stocks are going to fall apart.

Watch SPX 3792, CPER 21.76 and VIX 25.02.The direction of copper futures overnight will tell you the story on the red metal and volatility begins trading at 3 AM EST.

2/7/21; 7:00 PM EST =
2/5/21; 9:00 AM EST =
2/2/21; 1:04 PM EST = +22; signal line is +29 but algorithm remains long
2/2/21; 11:43 AM EST = +38; signal line is +30
2/2/21; 11:36 AM EST = +22; signal line is +31 but algorithm remains long
2/2/21; 11:17 AM EST = +38; signal line is +32
2/2/21; 9:36 AM EST = +22; signal line is +32 but algorithm remains long
2/1/21; 2:18 PM EST = +38; signal line is +34; go long 3779; (Benchmark SPX for 2021 = +0.6%)(Keybot algo this trade = +0.9%; Keybot algo for 2021 = +3.0%)(Actual results this trade = +1.3%; Actual results for 2021 = +5.6%)

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