Tuesday, August 23, 2016


Keybot the Quant remains long. The beat goes on. The algo prints one number after yesterday's opening bell. Copper is in the bear camp and commodities are in the bull camp. These two parameters remain key to broad stock market direction currently. If GTX loses 2272 (now at 2297) and SPX drops under 2176, Keybot will likely flip short and stocks may begin falling in earnest. If GTX loses 2272 consider the imminent turn to the short side to be in play. If JJC moves above 24.78 (now at 24.46), the bulls will ride stocks higher with the SPX back on track towards 2200.

For the SPX starting at 2183, the bulls need to push above 2185 to accelerate the upside while the bears need to push under 2176 to accelerate the downside. A move through 2177-2184 is sideways action for Tuesday. The bulls remain in control but only by a  single hair with the algo number only one tick above the signal line.

Watch JJC, 24.78, GTX 2272 and SPX 2176. S&P futures are indicating a +5 gain at the opening bell about three hours away. If stocks rally today, but the JJC does not move above 24.78, bulls got nothing and stocks will roll back over to the downside. If stocks and copper rally with JJC above 24.78, the bulls will be throwing confetti. Copper is marginally negative in overnight trading.

8/28/16; 7:00 PM EST =
8/26/16; 10:00 AM EST =
8/22/16; 9:36 AM EST = +78; signal line is +77
8/21/16; 7:00 PM EST = +94; signal line is +77

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.