Wednesday, May 15, 2019


Keybot the Quant remains short as the bulls attempt to stabilize the stock market. The price action is very active although erratic and unstable. The bulls goosed commodities and banks to create the Tuesday upside but the financials ran out of gas and rejoined the bear camp. The bears remain in control of the stock market with the algo number 24 points below the signal line.

Commodities and banks are the two parameters most impacting stock market direction currently. Bears need weaker commodities with GTX moving under 2540 (now at 2559). Bulls need stronger banks with XLF moving above 27.00 (now at 26.89). Since XLF poked above yesterday, watch it closely, it directly tells you if the bulls have the beans to take stocks higher, or not.

Bulls will also benefit from lower volatility and need the VIX below 15.20 (now trading at 17.64). The bulls likely need both higher banks and lower volatility to try and flip the quant long. If either XLF or VIX joins the bull camp, consider the caution flag to be out. If both turn bullish, consider the imminent turn to the long side to be in play.

Note the drop in utilities yesterday the only negative sector on the day. European trading is underway for Wednesday and utilities are smacked hard in early trading. As the short German in the pit helmet would opine on the Laugh-In television comedy show many years ago, "Veeellly interesting."

5/16/19; 9:00 AM EST =
5/14/19; 3:36 AM EST = +22 signal line is +46
5/14/19; 11:17 AM EST = +38 signal line is +47
5/14/19; 9:36 AM EST = +22 signal line is +49
5/13/19; 1:36 PM EST = +8; signal line is +51

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