Sunday, January 15, 2017


Keybot the Quant remains long through the three-day holiday weekend. US markets are closed on Monday for the Dr Martin Luther King Jr Day.

Last week, Keybot idled along only printing four numbers including the Friday pre-scheduled number; the algo was unresponsive to the non-stop daily drama. Utilities sank last week but not enough to take UTIL under 643.46 a critical number for all of the new week ahead. This helps the bulls and will create buoyancy in the stock market. Bears need to push UTIL under 643.46 (now at 657). If UTIL moves higher above 662.50, the stock market will be rallying higher.

The bears need weaker utilities and retail stocks. Bears need RTH under 76.58 (now at 77.17) to create strong selling action in the stock market. The algorithm likely needs both UTIL to fail through 643.46 and RTH to fail under 76.58 to flip the algo short. Weakness in copper and commodities will also help the market bears.

For the SPX starting at 2275 on Tuesday, the bulls need to touch the 2279 handle and the upside will accelerate quickly well into the 2280's. The bears need to push below 2272 to accelerate the downside. A move through 2273-2278 is sideways action. Keybot prints one pre-scheduled number in the new week ahead on Thursday morning.

1/22/17; 7:00 PM EST =
1/19/17; 9:00 AM EST =
1/15/17; 7:00 PM EST = +68; signal line is +65
1/13/17; 10:00 AM EST = +68; signal line is +65
1/11/17; 2:31 PM EST = +68; signal line is +66

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