Tuesday, September 29, 2020


Keybot the Quant remains long with the algo number 50 points above the signal line. The bulls took advantage of the weaker dollar yesterday pumping commodities higher which sent stocks higher. The pre-scheduled number for Tuesday prints and provides further lift in the stock market.

The upside rally will stop with weaker copper and higher volatility. Bears need CPER below 18.34, which may fail at any time, copper futures are on the border line now, and VIX above 27.17 (now at 26.08).

Bulls need stronger commodities, utilities and banks; GTX above 1723, UTIL above 826 and XLF above 24.24, respectively. Any one of these three parameters will immediately prove that the bulls got game. Every hour that goes by and the bulls do not pull one of these into their camp, however, means equities will likely become soggy and develop a downward bias.

The first of three US presidential debates occur this evening (East Coast time) so markets may idle sideways until the results are known.

9/30/20; 7:00 PM EST EOM EOQ3 =
9/29/20; 10:00 AM EST = +27; signal line is -23
9/29/20; 9:36 AM EST = +20; signal line is -26
9/28/20; 11:43 AM EST = +34; signal line is -28
9/27/20; 7:00 PM EST = +20; signal line is -30

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