Monday, January 14, 2019


Keybot the Quant remains long as the new week of trading begins. The algo number is 19 points above the signal line. The bears push the VIX above the important 19.09 level so S&P futures are down 20 handles. The bulls must push the VIX back below 19.09 or they got nothing. As volatility goes, so goes the markets inversely.

Utilities are key this week with UTIL 733.73 and UTIL 709.78 the key bull-bear lines in the sand. UTIL begins the week at 714 so the stock market is receiving a lift because utes are above 710 but at the same time the market receives negativity from UTIL under 734. The bulls need UTIL above 734 which will create upside juice for the stock market. The bears need UTIL under 709.78 which will usher in serious negativity and downward selling pressure in equities (the trap-door).

If you see behavior today such as the VIX dancing to and fro above and below the 19.09 level, and/or UTIL doing same at 709.78, this likely indicates that the quant may be setting up to flip short. Watch these two parameters closely on Monday since they likely tell the stock market directional story.

Keybot prints two pre-scheduled numbers this week one on Thursday morning and the other on Friday morning. The beat goes on.

1/20/19; 7:00 PM EST =
1/18/19; 10:00 AM EST =
1/17/19; 9:00 AM EST =
1/14/19; 3:06 AM EST = -4; signal line is -23
1/13/19; 7:00 PM EST = +10; signal line is -25
1/11/19; 12:21 PM EST = +10; signal line is -27

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