Monday, January 7, 2019


Keybot the Quant remains short as the new week of trading begins, however, the model wants to flip long with the algo number 1 point above the signal line. If UTIL remains above 709.50, and if the SPX moves above 2538 (the week begins at 2532), Keybot will likely flip long, hence, the imminent turn notation is in the title line. S&P futures are up +6 about 4-1/2 hours before the opening bell for the regular Monday trading session. Whoa, no. Futures hit an air pocket over the last few minutes with the spoo's now down -4. The VIX is at 21.38.

Utilities are key. For this week, UTIL 709.50 and 720.60 are in play as key bull-bear lines in the sand. UTIL begins at 711.91. If UTIL falls below 709.50, run for your life because stocks will likely fall apart and trend lower again. If UTIL moves above 720.60, bingo, the relief rally for the stock market will gather lots of upside steam. If UTIL remains between 710 and 720, the stock market will bump along sideways with a slight upward bias.

Copper is key. Bulls need CPER abve 17.03 to prove that the relief rally is real. Bulls also need lower volatility. Bulls need the VIX below 18.73 which would create upside rocket fuel for the stock market. Keybot does not print any pre-scheduled numbers this week. Watch utilities out of the gate; that UTIL 709.50, the trapdoor in the stock market, is key.

1/13/19; 7:00 PM EST =
1/6/19; 7:00 PM EST = -36; signal line is -37 but algorithm remains short
1/4/19; 3:38 PM EST = -36; signal line is -37 but algorithm remains short

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