Friday, October 31, 2014


Keybot the Quant remains long as a strong Halloween rally occurs in stocks due to the BOJ providing more easy money. One day is stranger than the next. Copper exploded higher overnight but as the opening bell in the States approached, copper collapses and trades negative. So a boost from JJC does not occur. The JJC 37.15 line in the sand remains in place so the stock market does not receive upside juice from copper. Keep watching this level to see if it confirms the upside, or not. Semi's explode higher and create bullishness but the model had already had the SOX in the bull camp.

Watch VIX 13.94 another oddity today. Volatility collapsed at the opening bell under the 13.94 bull-bear line in the sand, however, immediately ran back into the bear camp. How do you like that? Very odd indeed for such a strong rally. VIX is currently printing 14.42 remaining well above the 13.94 bull-bear line so market bulls will not yet receive juice from lower volatility. For such a strong rally, the expectation is that JJC and VIX would have blown through their lines in the sand but they did not. The bulls are in control but some healthy skepticism is in order for the rally unless the bulls push JJC above 37.15 or VIX under 13.94. The pre-scheduled number prints this morning with the algo number only 20 points above the signal line with the stock market at or near all-time highs. Markets remain very erratic and unstable. 

11/2/14; 7:00 PM EST EOM =
10/31/14; 10:00 AM EST = +46; signal line is +26
10/30/14; 1:11 PM EST = +44; signal line is +22

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