Keybot the Quant remains long through another sleepy week. The bulls remain in charge of stock market direction with the algo number 23 points above the signal line. Bears need weaker utilities and retail stocks and higher volatility. Bears need the VIX above 25.70 (now at 20.84) or they got nothing.
Keybot prints the month-end (EOM) number tomorrow and another pre-scheduled number on Friday morning. December trading begins on Tuesday.
Keybot the Quant remains long as the new holiday-shortened week of trading is about to begin. US markets are closed on Thursday for Thanksgiving Day and Friday is a half-session (that is typically bullish). The bulls remain in charge of stock market direction with the algo number 32 points above the signal line.
The quant is tracking volatility and retail stocks as the two key parameters most impacting market direction currently. Bears need VIX above 26.04 (now at 23.70) and RTH below 151.30 (now at 154.40). These two parameters will likely tell the story for Monday. If both remain bullish, stocks float higher. If 1 of the 2 turn bearish, consider the caution flag out as stocks become soggy. If both parameters turn bearish, stocks will be selling off in earnest and consider the imminent turn to the short side to be in play.
Keybot prints two pre-scheduled numbers this week one on Tuesday morning and the other on hump day morning, Thanksgiving Eve. The month of November ends (EOM) on Monday a week hence. So there are only 4-1/2 trading days remining in the month before December begins on Tuesday, 12/1/20.
Keybot the Quant remains long. The quant is sleepy last week only printing the pre-scheduled number on Wednesday morning. The stock market is in suspended animation. If stocks begin selling off, it will likely occur with higher volatility (VIX) and weaker retail stocks (think AMZN, HD, LOW, WMT, TGT, COST, JD, DG, CVS, etc.) leading the way down. For now, the bulls are happy with the algo number 35 points above the signal line.
Keybot the Quant remains long. The quant is idling along this week without printing any numbers thus far except for the pre-scheduled number. The bulls are running the show with the algo number 35 points above the signal line.
Bears need higher volatility and must push VIX above 26.04 or they got nothing. The VIX is currently trading at 23.64. Retail stocks may come into play over the coming days, also, perhaps copper and commodities depending on if the dollar moves higher.
Keybot the Quant remains long with the algo number 37 points above the signal line. The bulls are cruising. The PFE and MRNA vaccine hype creates joy in the stock market over the last week. Banks rally sending the major indexes higher. Bears need higher volatility and must push VIX above 26.00 to create stock market negativity. Bears got nothing until this happens. VIX is currently trading at 22.40 with S&P futures up +4.
Price action remains erratic and unstable. Keybot prints a pre-scheduled number before the opening bell.
Keybot the Quant remains long as America wrestles through the election drama. Joe Biden is named the 46th President of the United States but President Trump refuses to concede.
From election day (11/3/20) forward, the bulls are pumping chips, banks, retail stocks and commodities higher while slapping volatility lower. Stocks rocket launch higher. The bulls are in charge of stock market direction with the algo number 28 points above the signal line. The bulls are cruising. Bulls need stronger commodities to keep the party going. Bulls need GTX above 1722 (now at 1705) and that will create a strong leg higher in equities.
The bears are going to try and create negativity by smacking banks lower and pushing volatility higher; XLF below 24.58 (now at 24.96) and VIX above 26.84 (now at 24.86), respectively. If 1 of the 2 parameters turn bearish, the stock market will roll over with a downward bias. If both parameters turn bearish, consider the imminent turn to the short side to be in play, and then if the SPX drops below 3484 trending lower, Keybot will likely flip short.
Keybot prints one pre-scheduled number this week on Friday the 13th a superstitious day. It will be interesting to see how markets react to the new President-Elect Biden and the lame-duck President Trump who is hiding in the Lincoln Bedroom refusing to concede.
Keybot the Quant flips into the bull camp this morning shortly after the opening bell at SPX 3360. The bulls have been trying to hoist the slippery chips higher this week, and now succeeded, along with pumping retail stocks and banks higher; a trifecta of bull glory.
Today is the US Presidential Election Day, 11/3/20. Vote early and often, as the saying goes. Humorously, America chooses between two corrupt silver-haired white guys. The stock market may whipsaw in the coming days as election results are finalized. Perhaps the winner will be known around midnight tonight.
Bulls need stronger commodities and lower volatility to send stocks higher. Bulls need GTX above 1723 and this is what they are gunning for right now.
Bears need weaker retail stocks, banks and chips, which will likely fail in that order. Bears need RTH below 148.30, XLF below 24.58 and/or SOX below 2261. Any 1 of the 3 slipping into the bear camp will immediately halt the upside rally. If 1 of the 3 turn bearish, consider the imminent turn to the short side in play, and then if the SPX drops below 3280-ish (a long way down), Keybot will likely flip short. Thus, stocks may stumble along sideways until the existing or new king is crowned in America.
On the last trade that ran for a week, the algo program gains nearly +2% and the actual trading gains +1.4%. For the year, the statistics are all whole numbers which is interesting. The benchmark S&P 500 is up +4% in 2020 while the quant program gains +24% and the actual trading generated by the robot is up +44% this year thus far. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's. The world awaits the election results. Is King Donnie Trump the winner or Sleepy Joe Biden?
