Friday, March 22, 2019


Keybot the Quant  remains long. Finally, after several days of dull action, the algo begins spitting out numbers. Keybot remains at the epic +100 level despite a couple of stutter-steps. XLF failed the key 25.94-25.95 level but the bulls jammed the banks higher and it was nothing but blue skies and rainbows after that. The XLF ramps higher above 26 and the chip sector was on fire. Traders sing, "Happy Days Are Here Again."

Stock market bears need weaker banks. The XLF 25.95 level will continue as a key bull-bear battleground. Market weakness begins with XLF below 25.95. If XLF remains above 25.95, the bulls will be singin' songs and carryin' on all day long into the weekend.

Bears likely need weaker banks and weaker copper to flip the model short. A drop in copper of about -2.1% would send the broad stock market lower. Copper futures are up +0.2% about 5 hours before the opening bell for the regular Friday trading session (copper needs to drop about -2.3% to damage the stock market). So the bears have a lot of work to do if they want to regain control of the market.

Weaker utilities will also help the bears but they will need rates to move higher to send utes lower. UTIL 758 is a key level for all of next week. UTIL is at 779. A drop below 758 next week will usher in market trouble. For now, the bulls are in full control of the stock market. Watch XLF 25.95; it is the main rudder now steering the stock market ship.

3/24/19; 7:00 PM EST =
3/21/19; 11:02 AM EST = +100; signal line is +67
3/21/19; 10:21 AM EST = +84; signal line is +66
3/21/19; 10:11 AM EST = +100; signal line is +66
3/21/19; 9:41 AM EST = +84; signal line is +66
3/17/19; 7:00 PM EST = +100; signal line is +65

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