Friday, October 2, 2015

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short. Stocks drop after a disappointing jobs report but the corresponding drop in yields sends utilities higher. The algorithm is champing at the bit to go long but internal parameters will not yet fully latch to permit the move. Watch SPX 1927. Price is at 1916 as this is typed. If the bulls can push the SPX above 1927, Keybot will likely flip long. If UTIL fails below 569.68 then all bets are off and stocks should remain weak into the weekend.

Interestingly, the bulls likely have the upper hand because the UTIL 569.68 expires at the closing bell and all of next week the UTIL 555.12 level will be a key bull-bear level. Price is firmly above so come Monday, the market bulls will have a positive feather in their caps to help create market upside.

Note how UTIL jogs above and below 569.68 today as has been predicted ahead of time this week. The algo number is 4 points above the signal line telling the model to go long but the internal parameters still have to line up properly to permit the flip to the long side. For now, the bears continue to drive the bus. It will be interesting to see if the bulls can push the SPX up towards 1927 today, or not.

10/4/15; 7:00 PM EST =
10/2/15; 11:36 AM EST = -43; signal line is -47 but algorithm remains short
10/2/15; 11:21 AM EST = -59; signal line is -47
10/2/15; 10:55 AM EST = -43; signal line is -46 but algorithm remains short
10/2/15; 10:34 AM EST = -59; signal line is -45
10/2/15; 9:39 AM EST = -43; signal line is -45 but algorithm remains short
10/2/15; 9:00 AM EST = -59; signal line is -44
10/1/15; 11:07 AM EST = -59; signal line is -44

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