Friday, March 29, 2019


Keybot the Quant remains long and is quiet this week not printing any numbers in the Thursday session. The banks and copper continue to battle; a trip to the glue factory is in order to keep beating this dead horse. The banks rally yesterday with XLF at 25.64 now only 19 cents below the critical bull-bear line in the sand at XLF 25.83 which causes stock market sadness.

Copper is buoyant the last couple days with CPER at 18.00 now 21 pennies above the critical bull-bear line in the sand at CPER 17.79 creating stock market joy. Either the banks or copper will flinch and paint the picture forward.

If XLF moves above 25.83, the bulls will be throwing confetti as stocks rally strongly higher. If CPER drops below 17.79, the bears will cheer as the stock market begins falling apart. Copper futures are up +1.8% about 90 minutes before the opening bell (which would pump CPER to about 18.32) for the Friday trading session so the bulls are feeling confident.

However, if the stock market rallies but the XLF cannot move above 25.83, look out because stocks will likely roll over and die. XLF 25.83 proves that the upside is sustainable, anything below hints at stock market weakness ahead.

If CPER drops below 17.79, and the SPX falls below 2799 trending lower, Keybot will likely flip short. With copper rallying this morning this looks like folly, however, sometimes this stuff can surprise you quickly. Watch copper, and the banks, very closely today since they are telling you the stock market story.

Markets remain erratic and unstable and very news-driven, thus, anything can happen at any time. For now, the bulls are whistling happy tunes while drinking Fed wine and US-China trade-talk champagne. Keybot prints a pre-scheduled number shortly after the trading day begins. Today is the EOM and EOQ1, the last trading day of the month and quarter.

3/31/19; 7:00 PM EST EOM EOQ1 =
3/29/19; 10:00 AM EST =
3/26/19; 10:00 AM EST = +84; signal line is +73

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