Wednesday, October 28, 2020


Keybot the Quant is on the short side. The bears are in control of stock market direction with the algo number 14 points below the signal line. Bears enjoy high volatility and weaker banks while bulls maintain market buoyancy with commodities, retail stocks and chips.

Bears need GTX back below 1731, RTH below 149.22 and/or SOX below 2263. You can gauge the depth of any stock market selloff by which and how many of these three parameters flip bearish. Scamazon is in the RTH so that would be a key failure and any weakness in chips will weaken the stock market. If stocks sell off but none of these Three Stooges flip bearish, the stock market will recovery and rally. If one turns bearish, stocks take a noticeable dip, if two fail, the selling is in your face and strong, if all three flip bearish, stocks will be falling apart to the downside with the blood flowing on Wall Street.

Bulls need to keep the commodities, retail stocks and chips in their camp while at the same time pumping the banks higher and volatility lower. Bulls need XLF above 24.66. Yesterday, the market goes as banks go, and they went lower so stocks went lower and S&P futures are currently down -50 points this morning. Bullish traders rising on the East Coast just soiled their sheets. Bulls need VIX below 27.01 and they got nothing until they bring volatility lower. VIX is currently trading and pops above 36.

11/1/20; 7:00 PM EST EOM =
10/30/20; 10:00 AM EST =
10/27/20; 10:00 AM EST = +43; signal line is +57
10/27/20; 9:36 AM EST = +43; signal line is +57
10/26/20; 10:50 AM EST = +29; signal line is +56

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