Keybot the Quant is on the long side to start the new week of trading. The bulls are in control of the stock market but the algo number is only 5 points above the signal line that is not much.
The bulls win the day riding the backs of the banksters. XLF pops to 52.97 fueling the 'end of the government shutdown' orgy. The SPX finishes up over one hundo points to 6832. Bulls are walking around with their chests puffed out and the banks in their back pockets.
Tuesday will be a cage match. There are a lot of cage matches lately with odd results. One cage match ended with the two metrics switching positions another ended in a draw. People do not pay to see such weak duels. Perhaps tomorrow will be different.
It is banks versus volatility. Two will enter the cage but only one will exit and stocks will go in that direction. XLF 52.80 and VIX 16.69 are the bull/bear lines in the sand. The bullish banks are creating stock market lift while the bearish elevated volatility creates stock market negativity. One of them will flinch.
Bulls need to keep banks elevated and moving higher while pushing the VIX below 16.69. If so, stocks will be catapulting higher probably to new record highs.
Bears need to keep volatility elevated and moving higher while pulling XLF below 52.80. If so, you will notice an immediate pall develop in the stock market. Dark clouds will form. If banks turn bearish, and the SPX drops below 6771, Keybot the Quant will likely turn bearish. It is a tall ask because the SPX will need to drop over -60 points. Hump day may be a better set-up for a potential whipsaw back to the short side
Banks and volatility will tell you the direction of the stock market tomorrow.
Happy Birthday to the United States Marine Corps. Ooh Rah. The Marines' Hymn.
11/16/25;
7:00 PM EST =
11/10/25;
11:53 AM EST = +29; signal line
is +24
11/10/25;
10:44 AM EST = +13; signal line
is +25 but algorithm remains long
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