Sunday, June 5, 2016


Keybot the Quant remains long moving into the new week of trading. Last week, the algo simply idled along through the week printing the pre-scheduled numbers as stocks floated along sideways with a slight upward bias. Keybot is tracking copper, retail and financials as the main drivers of stock market direction currently. Copper is the only remaining lagging sector that the bulls need to boost higher to prove they can run stocks to new all-time highs. Pay close attention to copper. The bulls need JJC above 24.55 (now at 24.23) and will pop champagne corks if it occurs. Market bears must prevent JJC 24.55 with all their might, otherwise, they will be bludgeoned as stocks rally higher.

The bears need either RTH under 76.00 and/or XLF under 23.08, either requires a pull back of -1% and more, for the bears to regain their mojo and create sustainable stock market weakness. If copper remains in the bear camp, and retail and financial stocks bullish, the stock market will keep floating along choppy sideways with a slight upward bias.

For the SPX starting at 2099, the bulls need 5 points, to push above 2104 and bingo, the broad indexes will accelerate higher. The bears need to push under 2085 to accelerate the downside. A move through 2086-2103 is sideways action for Monday. Keybot prints one pre-scheduled number this week shortly after the Friday morning opening bell. The bulls are driving the bus with the algo number a comfortable 19 points above the signal line.

6/12/16; 7:00 PM EST =
6/10/16; 10:00 AM EST =
6/5/16; 7:00 PM EST = +80; signal line is +61
6/3/16; 9:00 AM EST = +80; signal line is +60
5/31/16; 7:00 PM EST EOM = +80; signal line is +60

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