Sunday, August 14, 2016


Keybot the Quant is long heading into the new week of trading but, as shown by the algo number below the signal line, is champing at the bit to go short. Internal programming parameters will not yet fully latch to permit the move and this drama continued all of last week. Stocks float higher.

The  new week continues with the same theme. If SPX drops under 2179 after the opening bell, Keybot will likely flip short. If a gap down move occurs, that is not good for market bears since it may trigger a timer where the algo will not flip short for about 90 minutes to provide time for stocks to stabilize. Market bears would benefit the most from a steady move lower in the stock market.

If markets rally but JJC remains under 24.89 and GTX remains under 2265, the bulls got nothing. Stocks would be expected to roll over to the downside. If stocks rally and one of these two parameters turn bullish, equities will accelerate higher and the SPX will target 2200+

For the SPX starting at 2184, the bulls need 2 points of upside, to move above 2186 and the upside will accelerate into the 2190's. The bears need to push below 2179 to accelerate the downside. A move through 2180-2185 is sideways to begin the week but since this is such a tight range, a winner and loser will likely be crowned in Monday's trade. Keybot prints one pre-scheduled number this week on Tuesday morning.

8/21/16; 7:00 PM EST =
8/16/16; 9:00 AM EST =
8/14/16; 7:00 PM EST = +64; signal line is +76 but algorithm remains long
8/12/16; 10:00 AM EST = +64; signal line is +76 but algorithm remains long

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