Sunday, December 16, 2018


Keybot the Quant is short as the new week of trading is set to begin. The algo did not print any numbers last week. Parameters remain very bearish sans utilities. The bears remain in control with the algo number 14 points below the signal line.

Bears need weaker utilities to continue the downside fun. Bears need UTIL under 733.60 (now up at 758) to create long-term market carnage. The 733.60 number is valid for all of this week and then it will change to 736.88 for all of the following week. Thus, the UTIL 733-737 level can be considered an important support gauntlet into year end. The stock market could potentially crash if this UTIL 733-737 level fails into the new year; especially if UTIL then fails at 708.

Bulls need to keep utes buoyant. It appears, looking at Keybot's data, that copper remains the key for the bulls. Stronger copper will stop the downward slide in stocks. Bulls need CPER above 17.34 (now at 17.22) which will signal that the stock market selling is over. Let's see, that is 12 cents, or a +0.7% increase needed in copper to make the bulls happy. Thus, watch the copper futures overnight to see if the bulls can rally the red metal +0.7%, or not. It will tell you the story for the US stock market on Monday.

If copper turns bullish, consider the imminent turn to the upside to be in play and if the SPX would move above 2635, Keybot the Quant will likely flip long.

Keybot prints two pre-scheduled numbers this week; one on Tuesday morning and one on Friday morning. Watch to see if copper shines higher, or, if it is tarnished and shunned.

12/23/18; 7:00 PM EST =
12/21/18; 10:00 AM EST =
12/18/18; 9:00 AM EST =
12/16/18; 7:00 PM EST = -20; signal line is -6
12/9/18; 7:00 PM EST = -20; signal line is -6

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