Sunday, July 19, 2020


Keybot the Quant remains long as the stock market tension increases. This week should provide resolution on market direction one way or the other. The bulls remain in charge with the algo number 17 points above the signal line.

Bulls need stronger utilities and NYA index to push the stock market higher while bears need weaker utes, commodities and banks.

Bulls need UTIL above 835.15 and/or NYA above 12482. Either parameter flipping bullish will send the stock market strongly higher and if both jump into the bull camp, stocks will be flying higher and not looking back.

Bears need UTIL below 827.83 pronto which is a negative market signal. Bears would then gather downside strength with GTX falling below 1685 and/or XLF under 23.35. If 2 of the 3 parameters flip bearish, and the SPX drops below 3206 trending lower, the quant will likely flip short. If only 1 of the 3 parameters flip short, which would likely be the utilities with UTIL losing 827.83, that on its own may not be enough to flip the model short. Watch for a jog move by the utilities where UTIL price falls below the 828 palindrome, then back above for a little while, then slips back below, etc.. If you see this price behavior occurring back and forth across 827.83, Keybot is likely preparing itself to flip short. If UTIL falls below 828, and then jogs back above, and then below again, and the SPX drops below 3206 trending lower, Keybot may flip short.

Monday and the week ahead may be one for the record books; make sure your computer chair is equipped with a harness and helmet. The new moon peaks Monday after lunchtime US East Coast time; the darkest time of the month. Keybot does not print any pre-scheduled numbers this week.

Watch utilities and the NYA index out of the gate on Monday since they will immediately tell you the broad stock market direction ahead. The SPX begins the week at 3225 only six points negative on the year, call it flat, that started at 3231.

7/26/20; 7:00 PM EST =
7/19/20; 7:00 PM EST = +42; signal line is +25
7/17/20; 10:00 AM EST = +42; signal line is +23

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