Thursday, November 10, 2016


Keybot the Quant remains long as the wild market ride continues. The Dow prints a new all-time record high but then stocks become soggy. VIX is above 13.93 so bears are happy. UTIL collapses to 623 so bears are happy. UTIL under 650 is ominous for the stock market for the weeks and months ahead.

The algo is now tracking retail stocks as a top influencer on market direction currently. Watch RTH 76.62 as a bull-bear line in the sand. If RTH moves above 76.62, stocks will rally strongly higher. If volatility remains elevated, and utes and retail remain in the bear camp, stocks should leak lower.

Keybot is champing at the bit to go short with the algo number 4 points under the signal line but all the internal program parameters are not yet latched to allow the move. If SPX falls under 2125, Keybot will likely flip short; this level remains about 30 handles below current levels. If the day ends with no resolution, and Keybot still wants to go short, today's low print in the SPX will be key tomorrow. Today's LOD thus far is 2151 (if status quo remains today, Keybot may want to flip short tomorrow at SPX 2151).

11/13/16; 7:00 PM EST =
11/11/16; 10:00 AM EST =
11/10/16; 10:07 AM EST = +17; signal line is +21 but algorithm remains long
11/10/16; 10:02 AM EST = +33; signal line is +22
11/10/16; 9:46 AM EST = +47; signal line is +22
11/10/16; 9:37 AM EST = +31; signal line is +23
11/9/16; 1:26 PM EST = +17; signal line is +23 but algorithm remains long

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