Tuesday, January 3, 2017


Keybot the Quant remains short after the first day of trading in the new year. The algo prints one number after the opening bell with the algo number now 24 points under the signal line remaining stubbornly bearish. Volatility collapsed with the VIX dropping to a 12-handle so the bulls punched the bears in the face in today's trade.

Wednesday is a critical day. Market bulls need UTIL above 661.50 and/or RTH above 76.48 to guarantee upside stock market joy; the Dow will be over 20K and the SPX will be targeting 2300. Keybot likely needs both parameters to turn bullish to create a flip back to the long side. But either parameter turning bullish guarantees stock market upside and the Dow will likely print 20,000.

The market bears need lower copper so watch the trading overnight to see if the other yellow metal sinks lower, or not. Bears need JJC under 28.39 and it is smooth sailing lower for the stock market. Bears need lower copper and higher volatility (watch the VIX 14.10 level) while bulls need higher utes and retail stocks.

For the SPX starting at 2258, the bulls need to touch the 2264 handle and bingo, price will be above 2270 in a flash. The bears need to push under 2245 to regain downside mojo. A move through 2246-2263 is sideways for hump day. Utilities, retailers and copper dictate broad stock market direction currently.

1/8/17; 7:00 PM EST =
1/6/17; 9:00 AM EST =
1/3/17; 9:36 AM EST = +52; signal line is +76
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%)

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