Sunday, January 1, 2017


Keybot the Quant is short to begin the new year of trading on Tuesday morning. Utilities, retail stocks, volatility and copper control the direction of the stock market as the year begins. The market bears are happy with the algo number 39 points below the signal line. The bulls can stop the downward slide in the stock market if one of these three parameters turn bullish; UTIL 660.10 now at 659.61, RTH 76.61 now at 75.80 and/or VIX 14.00 now at 14.04.

The market bears need a failure in copper and it is smooth sailing lower for stocks. Bears need JJC under 28.35 now at 28.77. Note that utilities and volatility's prices are at their bull-bear lines in the sand so these two parameters are most important. If UTIL moves above 660.10 or VIX under 14.00, stocks will begin rallying strongly with a relief rally to begin the year.

Volatility is extremely important and to whittle things down to the most basic concept, watch VIX 14.00 beginning early in the morning Tuesday. If VIX drops under 14, then the market bulls will rally the stock market on Tuesday. If the VIX is above 14 and moving higher early Tuesday, the bears will continue growling and selling off stocks to begin the year.

For the SPX starting at 2239, the bulls need to touch the 2254 handle to regain their upside mojo. The bears need to push under 2234 to accelerate the downside that will be in the 2220's in a flash. A move through 2235-2253 is sideways action for Tuesday. Keybot prints one pre-scheduled number this week on Friday morning. The market bears are running with the ball to begin the year; do they score a touchdown or do they fumble?

1/8/17; 7:00 PM EST =
1/6/17; 9:00 AM EST =
1/1/17; Begin 2017 Data Set = +38; signal line is +77; go short 2239; (Benchmark SPX for 2017 = 0%)(Keybot algo this trade = 0%; Keybot algo for 2017 = 0%)(Actual results this trade = 0%; Actual results for 2017 = 0%)

No comments:

Post a Comment

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