Sunday, January 22, 2017


Keybot the Quant remains long moving into the new week of trading. The algo prints two numbers on Friday and was champing at the bit to go short but the internal programming rules would not fully latch so the algo remains long. The SPX remains buoyant due to low volatility. The algo number is only 5 points above the signal line.

Monday is a battle between utilities and retail stocks. Market bulls need UTIL above 663.23 (now at 658.37) to prove they have the beans to take stocks higher. Market bears need UTIL under 651.79 to create market weakness. Market bears need RTH under 76.63 (now at 76.67) which will create market weakness. Since the bull-bear line in the sand is only 4 pennies under the current price, retail stocks will tell the market story at the opening bell. If UTIL remains between 663.23 and 651.79, and RTH remains above 76.63, the stock market will float along sideways with a slight upward bias.

If RTH drops under 76.63 and the SPX drops under 2265, Keybot the Quant will likely flip short, hence the imminent turn remains in play.

For the SPX starting at 2271, the bulls need to touch 2277 and the upside will accelerate. The bears need to push under 2265 to accelerate the downside. A move through 2266-2276 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are in control but if retail stocks sink, so will the bulls. Watch RTH 76.63 which will likely dictate stock market direction for Monday.

1/29/17; 7:00 PM EST =
1/27/17; 10:00 AM EST =
1/22/17; 7:00 PM EST = +84; signal line is +79
1/20/17; 3:44 PM EST = +84; signal line is +79
1/20/17; 3:29 PM EST = +68; signal line is +79 but algorithm remains long
1/19/17; 9:36 AM EST = +84; signal line is +79

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