Thursday, December 8, 2016


Keybot the Quant remains long as the wild stock market upside orgy continues. The bulls appear unstoppable. Keybot has been very quiet this week only flipping long after Monday morning's bell and not printing any numbers ever since. The algo is idling along not responding to this week's price action as yet. A pre-scheduled number prints tomorrow morning.

The bulls are in charge with the algo number 7 points above the signal line. The caution flag remains out. The imminent turn to the downside would be in play if the VIX moves above 13.93, and if the SPX drops below 2238, the algo will likely flip short. The market bulls rule the stock market if the VIX remains under 13.93.

Bulls need lower volatility and higher utilities to send stocks higher. Bears need higher volatility and lower commodities to send stocks lower.

For the SPX beginning at 2246 on Friday morning, the bulls need to touch the 2252 handle and bingo, price will accelerate higher towards 2260. The bears need to push under 2238 and boom, stocks will accelerate lower towards 2230. A move through 2239-2251 is sideways action to finish the week. The bears need higher volatility or they got nothing. There will probably be drama around the bull-bear line in the sand identified by Keybot at VIX 13.93; watch it closely.

12/11/16; 7:00 PM EST =
12/9/16; 10:00 AM EST =
12/5/16; 9:47 AM EST = +66; signal line is +59; go long 2204; (Benchmark SPX for 2016 = +7.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +14.8%)(Actual results this trade = -2.3%; Actual results for 2016 = +37.0%)

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