Tuesday, August 16, 2016


Keybot the Quant remains long. The pre-scheduled number prints before the opening bell and three more numbers print today. One day is stranger than the next. You would think the model would have flipped short today but it did not and in fact, the algo is at the uber lofty overbot +94 level which is nose bleed territory. Commodities, GTX briefly weakened under the key 2264 level in the morning but the internal program parameters would not permit Keybot to move to the short side. Commodities then quickly recovered.

Commodities and copper are both in the bull camp now which will create lift in the stock market. Watch GTX 2264 and JJC 24.78 as the two key parameters controlling market direction. Pay attention to copper with JJC at 24.83 only five points above the key line in the sand that would create negativity in markets. The bulls are cruising. Bears need GTX under 2264 and JJC 24.78, if this occurs consider the imminent turn signal to be in play, and if the SPX falls under 2178, Keybot will likely flip short.

For the SPX starting Wednesday at 2178, the bears need any smidge of negativity in the futures and the stock market will accelerate lower after the opening bell. The bulls need to push above 2186 to accelerate the upside in stocks. A move through 2179-2185 is sideways action. Watch the dollar since a higher dollar will send commodities and copper lower helping the bear case. If the dollar weakens, bend over bears, and receive additional whippings.

8/21/16; 7:00 PM EST =
8/16/16; 11:36 AM EST = +94; signal line is +77
8/16/16; 10:47 AM EST = +78; signal line is +77
8/16/16; 10:35 AM EST = +64; signal line is +78 but algorithm remains long
8/16/16; 9:00 AM EST = +78; signal line is +78 but algorithm remains long
8/15/16; 2:21 PM EST = +78; signal line is +77

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