Saturday, January 5, 2019


Keybot the Quant remains short as the bulls stage a huge comeback rally on central banker largess. The PBOC (China's central bank) greases the skids with a triple R cut and then Fed (US central bank) Chairman Powell flaps his dovish wings. The double-barreled dovish bazooka shoots global stock markets higher. The central bankers are the market. Easy money makes the world go 'round.

Note how UTIL came up to play with the critical 709.49 bull-bear line in the sand on Friday. Isn't it amazing that Keybot can identify these levels before they occur? Utilities pop up through to verify the bull breakout in equities, however, after lunch utes slump again. Then late-day joy sends UTIL back above 709.55 creating a euphoric finish for the day and week.

The algo is champing at the bit to go long now, hence the imminent turn notation in the title line,  but the internal parameters are not fully latching as yet to permit the move. The bulls are going to need to push the SPX above 2538 while maintaining strong utilities if they want to lock in the upside relief rally and likely get Keybot to flip long. Copper finally caught a bid on Friday but it needs to keep rallying to prove that the relief rally in the stock market is real. Keybot prints the Sunday pre-scheduled number tomorrow.

1/6/19; 7:00 PM EST =
1/4/19; 3:38 PM EST = -36; signal line is -37 but algorithm remains short
1/4/19; 1:25 PM EST = -52; signal line is -36
1/4/19; 12:46 PM EST = -36; signal line is -35
1/4/19; 9:00 AM EST = -52; signal line is -34
1/2/19; 9:37 AM EST = -52; signal line is -33

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.