Thursday, December 29, 2016


Keybot the Quant remains short. The algo prints four numbers today. Keybot threatened to go long before lunchtime but it was never any serious threat. Market bulls need higher retail stocks. Market bears need lower utes, copper and higher volatility.

Bulls need RTH above 76.61 (now at 76.53 only 8 pennies away) and stocks will rally higher. If RTH moves above 76.61 and the SPX moves above 2254, Keybot will likely flip long, hence the imminent turn notation is in the title line.

Bears need UTIL under 660.10 (now at 662.93) or JJC under 28.32 (now at 28.54) or VIX above 13.98, call it 14, (now at 13.37). Any one parameter turning bearish will guarantee the downward path ahead for the stock market. If bears cannot flip at least one of these three short, then it will indicate that the bears do not have enough energy to take stocks lower.

For the SPX starting at 2249, the bulls need to move above 2254 and bingo, the upside will accelerate to 2260 in quick order. The bears need to push under 2245 to accelerate the downside which will be under 2240 in a flash. A move through 2246-2253 is sideways action to end the day, week, month, quarter, second half of year and 2016; EOM, EOQ4, EOH2, EOY.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  
12/29/16; 11:50 AM EST = +68; signal line is +82
12/29/16; 11:27 AM EST = +84; signal line is +82 but algorithm remains short
12/29/16; 11:20 AM EST = +68; signal line is +82
12/29/16; 11:08 AM EST = +52; signal line is +82
12/28/16; 9:50 AM EST = +68; signal line is +82; go short 2265; (Benchmark SPX for 2016 = +10.8%)(Keybot algo this trade = +2.8%; Keybot algo for 2016 = +17.6%)(Actual results this trade = +6.6%; Actual results for 2016 = +43.6%)

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