Thursday, July 21, 2016


Keybot the Quant remains long. The algo idles along this week without printing any numbers except for the pre-scheduled number on Tuesday morning. The idle action with Keybot verifies the sideways move in markets over the last few days. Market bulls need higher commodities; GTX above 2300. Bears need higher volatility; VIX above 15.22.

In general, key parameters currently impacting market direction are commodities, volatility, copper and financials. The moves in these parameters dictate stock market direction. Remember, volatility moves inversely to equities. If VIX moves above 15.22, or XLF under 23.00, Keybot will likely flip short.

For the SPX at 2165 for Friday trading, the bulls need to touch 2175 and bingo, the upside will accelerate and if GTX turns bullish, stocks will rally strongly higher and not look back. The bears need to push below 2160 and boom, stocks will accelerate lower. A move through 2161-2174 is sideways action. The beat goes on. Sometimes after a sideways lull in the market, a wild acceleration phase occurs; the mystery is will it be up, or down?

7/24/16; 7:00 PM EST =
7/19/16; 9:00 AM EST = +82; signal line is +75

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