Wednesday, August 28, 2019


Keybot the Quant remains short as the stock market dances to and fro. Retail stocks catapulted higher, but semiconductors remains subdued, so these parameters remain in their respective camps and did not significantly impact market direction today.

The NYA, however, turns bullish printing above 12546 which gives the bulls the upper hand. The algo wants to go long but the internal parameters will not yet permit the move. The algo number is 6 points above the signal line so Keybot wants to go long. If the SPX prints above 2890, Keybot will likely flip long, hence the imminent turn notation is in the title line. The S&P 500 starts the Thursday session at 2888 and only needs 2 positive points to tag 2890. Interestingly, S&P futures are trading down -5.

Bulls would benefit from a slow and steady upward move in the stock market which would likely flip the model long. If a gap-up occurs at the opening bell, the quant will likely trigger a timer which will delay the move to the long side for about 90 minutes.

Thursday is a battle between the NYA and SOX. Bulls need NYA to remain above 12546 and for the SPX to move above 2890 to likely flip Keybot long. Bulls will greatly benefit from stronger chips. If SOX moves above 1470.50, the bulls will be charging higher and the bears will be running for their lives.

Bears need to push the NYA below 12546 pronto. The bears hopes and dreams for a market pull back are riding on this one number.

9/1/19; 7:00 PM EST EOM =
8/30/19; 10:00 AM EST =
8/28/19; 1:25 PM EST = +12; signal line is +6 but algorithm remains short
8/28/19; 1:17 PM EST = -2; signal line is +6
8/28/19; 12:57 PM EST = +12; signal line is +6 but algorithm remains short
8/28/19; 12:42 PM EST = -2; signal line is +6
8/28/19; 11:34 AM EST = +12; signal line is +6 but algorithm remains short
8/27/19; 11:12 AM EST = -2; signal line is +5

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