Tuesday, August 27, 2019


Keybot the Quant remains short as the market roller coaster continues. Bulls and bears battle in choppy sideways action. From Sunday evening into Monday morning, the S&P futures rallied 75 points after President Trump provided happy talk on the US-China trade negotiations. Monday was a bull party but the Keybot algo did not print any numbers. Today, Tuesday, stocks explode higher out of the gate with a gap-up open. The chips and NYA Index flip bullish creating stock market joy.

Alas, that did not last long as the day was a gap and crap, or pop and drop, if you prefer. Both the semiconductors and NYA Index then return into the bear camp creating market angst. The bears are in charge of the stock market but the algo number is only 7 points below the signal line. Keybot wanted to flip long today but the internal parameters would not fully latch to permit the move, and then equities fell on their sword.

Bulls need either SOX above 1470.50 and/or NYA above 12545 to create stock market bullishness. If either one flips bullish, the imminent turn will be in play, and then if the SPX moves above 2899, it is likely that Keybot will flip long.

Bears must keep the chips and NYA index weak and heading lower while at the same time smacking retail stocks lower. Bears need RTH below 108.95 to prove that they can take the stock market lower. Bulls are cheering for stronger semiconductors while bears are cheering for weaker retail stocks.

9/1/19; 7:00 PM EST EOM =
8/30/19; 10:00 AM EST =
8/27/19; 11:12 AM EST = -2; signal line is +5
8/27/19; 10:00 AM EST = +12; signal line is +4 but algorithm remains short
8/27/19; 9:58 AM EST = +12; signal line is +3 but algorithm remains short
8/27/19; 9:36 AM EST = +28; signal line is +3 but algorithm remains short
8/25/19; 7:00 PM EST = -2; signal line is +1

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