Sunday, December 30, 2018


Keybot the Quant remains short. Utilities and copper continue running the show over the last week or so. Note how UTIL tested the important 708.93 bull-bear line in the sand on Friday and remains above. The stock market will fall apart if UTIL drops below 708.93.

The bulls will mount a strong recovery rally if copper rallies. Bulls need CPER above 17.15. If this occurs, Keybot will likely flip to the long side. The move in copper will have to be about +2.5% higher to reward the bulls.

If UTIL remains above 709, and CPER below 17.15, the stock market will chop sideways with a very slight upward bias.

Many global stock markets are already closed for the year. Monday, 12/31/18, is the last day of trading for 2018; EOM, EOQ4, EOY2018. US markets are closed Tuesday for New Year's Day. Wednesday, 1/2/19, begins the 2019 trading year.

On Tuesday, the Keybot the Quant algorithm will be re-zeroed for the 2019 trading year and the 2018 performance will be assessed. Keybot the Quant smoked most other algorithms on Wall Street in 2018. The quant's outperformance is not surprising. The model could not care less whether the stock market goes up or down. All Keybot sees is 1's and 0's. The model is programmed to take the smoothest path through the trading year always tracking the dominant trend, up or down.

12/31/18; 7:00 PM EST EOM EOQ4 EOH2 EOY2018 =
12/30/18; 7:00 PM EST = -36; signal line is -20
12/27/18; 3:59 PM EST = -36; signal line is -18

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