Tuesday, September 8, 2020


Keybot the Quant remains short. The bulls sh*t the bed and soiled the sheets after the Labor Day holiday. It may have been from that potato salad sitting out in the sun all day.

There is carnage on Wall Street. Note how UTIL came down to tag the 792-793 level, called out by the quant ahead of time (if you are not impressed that the robot can identify key levels before they occur, you should be), but bounced. UTIL continues creating negativity in the stock market below 807 this week but the breach of 792-793 will bring on a whole new world of hurt.

The chips are down today, literally and figuratively. SOX failed at 2130 so the blood bath was on. Commodities also failed with GTX through 1718. The stock market walked into an ugly forest and bumped into every tree. It is a beautiful day. Shoot to Thrill, play to kill. Take no prisoners. Show no mercy. Pull the trigger. It's fun.

The bears are in full control of the stock market direction with the algo number 57 points below the signal line. Bulls have a lot of work to do to plot their comeback.

There are a lot of moving parts the quant is tracking. To keep it simple for yinz to follow along, bears need weak banks, XLF below 24.51, and weak retail stocks, RTH below 143.51. UTIL below 793 will also help create more carnage and blood for the wealthy privileged class (that own 90% of the stock market).

Bulls need stronger chips, SOX above 2130, stronger utes, UTIL above 807, and lower volatility, VIX below 28.29, to save the day. Any one parameter will stop the selling. Two or all three will send stocks upwards again.

For hump day, it is a battle between banks and chips. Bears will rejoice if XLF fails at 24.51 since the blood will be flowing like water on Wall Street. Bulls will finally breathe a sigh of relief if SOX pops above 2130; it will at least allow the bulls a little time to regroup. Listen for any news on semiconductor companies and banks overnight.

9/13/20; 7:00 PM EST =
9/8/20; 2:42 PM EST = -10; signal line is +47
9/8/20; 9:36 AM EST = +6; signal line is +49
9/6/20; 7:00 PM EST = +36; signal line is +51

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