Thursday, August 1, 2019


Keybot the Quant remains short as the stock market roller coaster ride continues. Commodities failed out of the gate so that created a pall over equities for the Thursday session. The central banker's placed their jackboots on the throat of volatility mid-morning which created bullishness in stocks but that was like trying to keep a beachball underwater and boom, the VIX pops skyward from the early afternoon on. This behavior coincides with President Trump tweeting that the US is imposing more tariffs on China. Stocks dive. Bonds rally.

The bears are cruising with the algo number 46 points below the signal line. Retail stocks and financials gave up the ghost today slapping equities silly. The Dow collapses 626 points intraday from +1% joy to -1% despair. This price action is with a VIX at 14-17. Just think, when the VIX trades above 20, the Dow will be moving 1,000 points or more intraday or day to day. That will be fun.

Bulls need XLF above 27.72 and/or RTH above 109.88 to stop the market bleeding. Bulls also need the VIX to move below 14.48. If these three parameters remain bearish, the bull whippings will continue and stocks will maintain a negative bias. The stock market will immediately stop selling off if any of the three parameters turn bullish.

The US Monthly Jobs Report is released before the Friday opening bell which may create further market turmoil. Keybot prints two pre-scheduled numbers tomorrow morning one at 9 AM EST and the other at 10 AM EST. August is off and stumbling.

8/2/19; 10:00 AM EST =
8/2/19; 9:00 AM EST =
8/1/19; 2:26 PM EST = +12; signal line is +58
8/1/19; 1:41 PM EST = +28; signal line is +60
8/1/19; 1:33 PM EST = +44; signal line is +61
8/1/19; 10:33 AM EST = +58; signal line is +62
8/1/19; 9:36 AM EST = +44; signal line is +62
7/31/19; 7:00 PM EST EOM = +58; signal line is +63

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