Wednesday, November 19, 2014


Keybot the Quant remains long. The bears did not have enough juice to flip Keybot short today although they were only a few minutes from their goal. At 1 PM, the VIX dropped under 14.37 so the fix was in and the bulls slapped the bears in the face. Note how price pivoted around VIX 14.37 in the afternoon first dropping to this level and bouncing, then moving sideways and retesting, resulting in failure, then coming back up for a back kiss resulting in failure again. It is always amazing to see Keybot call out these exact numbers before they occur.

Same set up for Thursday; the fight between volatility and copper continues. Bulls need JJC 36.95 to create another leg higher for stocks. Bears need VIX above 14.37 to stop the rally and lock-in selling. If VIX moves above 14.37 and SPX under 2040.50, Keybot will likely flip short. If JJC and VIX remain status quo, equities will stumble sideways with a slight upward bias.

For the SPX starting at 2049, the bulls need to push above 2052 to create an upside acceleration towards 2060. The bears need to push under 2040.50 to create a downside acceleration. A move through 2041-2051 is sideways action for Thursday. The bulls remain in control but the bears finally show signs of life after the one-month beating. Bears need higher volatility or they got nothing.

11/23/14; 7:00 PM EST =
11/19/14; 1:04 PM EST = +61; signal line is +49
11/19/14; 10:10 AM EST = +47; signal line is +49 but algorithm remains long

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