Sunday, January 27, 2019


Keybot the Quant remains short but continues champing at the bit to go long. The bulls had it on a silver platter on Friday only needing a nice steady and orderly increase in the SPX price to likely flip the model long, however, instead, the S&P 500 catapults higher in a gap-up move at the opening bell. That behavior triggers a gap-up timer and the model is prohibited from flipping for approximately 90 minutes. At that time, the SPX was off the highs and had difficulty holding the price high for the remainder of the day. The underlying parameters are strong but oddly, price is having trouble moving higher. Markets are very unstable.

Keybot may flip to the long side at anytime especially with SPX price above 2665, hence the imminent turn notation in the title line. On Sunday evening in the States, Monday morning with Asia markets coming on line, S&P futures are down -6.

Bulls need higher utilities and commodities to send stocks higher. Bulls need UTIL above 711.26 and GTX above 2465. The UTIL 711.26 level is a trap-door for the stock market and it is open now which is dangerous for the bulls that need to send utes higher and close this trap-door.

Bears need weaker copper and higher volatility. Bears need CPER below 16.94 and VIX above 19.48. The bears likely need both to turn bearish to confirm that down is the direction for the stock market ahead. Keybot prints four pre-scheduled numbers this week one on Tuesday, one Thursday evening and two on Friday.

2/3/19; 7:00 PM EST =
2/1/19; 10:00 AM EST =
2/1/19; 9:00 AM EST = 
1/31/19; 7:00 PM EST EOM =
1/29/19; 10:00 AM EST =
1/27/19; 7:00 PM EST = +26; signal line is +1 but algorithm remains short
1/25/19; 12:57 PM EST = +26; signal line is -1 but algorithm remains short
1/25/19; 9:36 AM EST = +42; signal line is -1 but algorithm remains short
1/24/19; 2:26 PM EST = +26; signal line is -2 but algorithm remains short

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