Thursday, March 21, 2019


Keybot the Quant remains long as the stock market drama continues. The Fed professes dovishness for as far as the eye can see, but stocks chop sideways rather than rallying strongly on the central banker easy money proclamation. Traders are wondering if the Federal Reserve sees something sick in the economy.

Nonetheless, the algorithm remains pegged at +100, the maximum possible bullish reading. Keybot has not printed any numbers this week; the algorithm simply hums along like last week unimpressed with the price action.

Traders are enjoying a euphoric bullish high. Stock market bears need weaker banks, a lower SPX index, weaker copper and/or lower utilities to create selling action. Bears need XLF under 25.94, SPX under 2750, CPER under 17.82 and/or UTIL under 753.51, respectively.

Banks are key. The first signs of cracks in the stock market will likely show in the banks. If XLF drops below 25.94, now only 20 cents above at 26.14, the stock market will take a leg lower. If XLF remains above 25.94, the bulls will continue partying. The bears likely need 2 of the 4 parameters above to turn bearish to flip the model short.

3/24/19; 7:00 PM EST =
3/17/19; 7:00 PM EST = +100; signal line is +65

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