Monday, December 26, 2016


Keybot theQuant remains long heading into the last trading week of 2016. It appears the algo will log another successful year. Keybot has never posted a negative yearly return since the actual trading went on line five years ago. The algorithm will be zeroed next weekend and the year-end results will be finalized. Trading for the new year, 2017, begins on Tuesday, 1/3/16.

Stock market direction is currently most impacted by utilities, retail stocks and copper. Note how JJC came down to test the JJC 28.28-28.33 level that the algo called out ahead of time. That is impressive that 1's and 0's can tell you that information before it happens.

UTIL begins the week at 660.81. Market bulls need UTIL above 671.78 to prove that the new record highs in stocks will continue. Market bears need UTIL under 658.55, only 2 points lower, to open the door for stock market trouble. Likewise, if RTH loses 76.59 (now at 76.74) and/or JJC drops under 28.28 (now at 28.40), equities will be falling in earnest.

Since, UTIL is 10 points below the 671.78 level, and barring any wild moves at the opening bell, the algo will likely drop from +100 to +84 in the opening minutes, however, that will likely not be enough to cause Keybot to flip short. If either UTIL drops under 658.55, or RTH under 76.59, or JJC under 28.28, any one will do, and the SPX drops under 2259, Keybot will likely flip short, hence the imminent turn notation in the title line. Bulls are okay if they push utilities higher at Monday's opening bell as well as keeping retail stocks and copper elevated.

For the SPX starting at 2264, the bulls need to push higher by any amount and the upside will accelerate so watch the overnight S&P futures to see if any green is showing. The bears need to push SPX under 2259 to accelerate the downside. A move through 2260-2263 is sideways but such a tight range that a winner and loser will likely be anointed. Comically, the last two days were the tightest trading ranges of the year but this will probably end tomorrow.

Keybot prints a pre-scheduled number tomorrow morning one-half hour after the opening  bell. The month, fourth quarter, second half of the year and the year ends on Friday, 12/30/16; EOM, EOQ4, EOH2, EOY, respectively. The algorithm remains maxed out at +100 a truly historic time for the stock market.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  
12/27/16; 10:00 AM EST =
12/25/16; 7:00 PM EST = +100; signal line is +80
12/23/16; 10:00 AM EST = +100; signal line is +79
12/22/16; 10:21 AM EST = +100; signal line is +77
12/22/16; 10:01 AM EST = +84; signal line is +76
12/22/16; 9:39 AM EST = +100; signal line is +74
12/21/16; 3:59 PM EST = +84; signal line is +72

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