Thursday, October 4, 2018


Keybot the Quant remains long printing four numbers in the Wednesday session. Keybot prints another +100 maximum number. The bulls appear unstoppable. The algo number remains 10 points above the signal line.

The current battle for stock market direction is centered around the chips and banks. Bulls win if XLF moves above 27.98 (now at 27.95 only 3 cents on the bear side creating market negativity).

Bears need SOX below 1369.85 (now at 1372 on the bull side creating market positivity). If SOX turns bearish and the SPX drops below 2921, Keybot will likely flip short, hence the imminent turn notation is in the title line. Bears are also helped if RTH falls below 108.60 and/or if JJCTF falls below 30.40. The VIX above 12.89 would also help the bears.

The bulls are driving the bus and will receive more upside fuel with stronger banks. Bulls must also keep semiconductors strong. Bloomberg, however, releases a negative story a few hours ago about China installing nefarious hardware chips in US devices so the chip sector may be slapped around today.

The bears need weaker chips, retail stocks and copper and higher volatility. XLF 27.98 and SOX 1369.85 dictate the stock market direction ahead. The beat goes on.

10/7/18; 7:00 PM EST =
10/5/18; 9:00 AM EST =
10/3/18; 2:42 PM EST = +84; signal line is +74
10/3/18; 12:14 PM EST = +100; signal line is +75
10/3/18; 11:54 AM EST = +84; signal line is +74
10/3/18; 9:54 AM EST = +68; signal line is +74 but algorithm remains long
10/1/18; 9:41 AM EST = +84; signal line is +74; go long 2931; (Benchmark SPX for 2018 = +9.6%)(Keybot algorithm program this trade = -0.8%; Keybot algo for 2018 = +3.9%)(Actual results this trade = -1.5%; Actual trading results for 2018 = +13.1%)

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