Friday, October 16, 2020


Keybot the Quant remains long. The bulls are in control with the algo number 13 points above the signal line. The algorithm is sleepy this week. Last week it was printing numbers like crazy. The bulls are cruising but weaker copper, commodities and/or banks would help the bears.

The bulls must push volatility lower to prove they can push stocks higher. Bulls need VIX below 27.02 and it is currently trading at 27.35. S&P futures are down -2, call it flat. Bulls will throw confetti and celebrate into the weekend if the VIX drops below 27.02.

Bears must keep VIX above 27.02. In addition, bears need weaker banks and must push XLF below 24.52. If banks fail, Keybot the Quant will likely flip short. Weaker copper and commodities also help the bears but they are at elevated levels. A stronger US dollar index would drive copper and commodities lower.

Keybot prints a pre-scheduled number shortly after the opening bell. VIX 27.02 is the rudder that will steer the stock market ship on Friday.

10/18/20; 7:00 PM EST =
10/16/20; 10:00 AM EST =
10/16/20; 3:06 AM EST = +59; signal line is +46
10/15/20; 3:25 PM EST = +73; signal line is +45
10/15/20; 4:30 AM EST = +59; signal line is +43
10/11/20; 7:00 PM EST = +73; signal line is +40

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