Sunday, February 7, 2021


Keybot the Quant remains long as the bulls pump stocks higher on a weak jobs number, progress on the fiscal stimulus bill and JNJ vaccine happy talk. The jobs market has finally stabilized after the March/April 2020 shock. Obviously, it is not happy times for the 10 million unemployed, and 10 million gig and part-time workers that are sitting on the sidelines, watching the wealthy class become richer.

The bulls are in charge with the algo number 33 points above the signal line and that margin will likely become even larger out of the gate tomorrow. For the week ahead, utilities, volatility and copper are key.

Bulls need UTIL above 857.77 this week to create stock market strength. UTIL ends last week at 872 so this is going to help create additional underlying market strength after the opening bell on Monday. For the following week, the 858 will be meaningless and replaced with 881.76. Thus, bears need UTIL under 858 pronto or they will be slapped around. By the end of the week, the bulls must push UTIL above 882 to guarantee sustainable stock market joy going forward. Utes will tell you a lot this week with price starting in between these two key levels. Bears will be happy sub 858 while bulls are ecstatic if UTIL moves above 882.

Bears need VIX above 24.84 (now at 20.87). Bears need CPER below 21.76 (now at 22.45).

The bulls are singing songs and carrying on without a care in the world. Keybot prints one prescheduled number this week on Friday morning. The bulls say let the good times roll.

2/14/21; 7:00 PM EST =
2/12/21; 10:00 AM EST =
2/7/21; 7:00 PM EST = +64; signal line is +31
2/5/21; 9:00 AM EST = +64; signal line is +30
2/3/21; 10:47 AM EST = +52; signal line is +29

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