Thursday, January 7, 2021


Keybot the Quant is on the long side with the algo number only 4 points above the signal line. The stock market is a coin toss especially considering the Capitol Hill violence. The natives are getting restless. Volatility is all that matters. VIX is trading at 23.52 right now with S&P futures up +22.

Bears need the VIX above 25.31 to create stock market trouble. The bulls will keep stocks elevated if the VIX remains below 25.31. Bulls may not be able to make much headway higher with stocks but they would be able to sustain current prices.

If VIX moves above 25.31, and the SPX drops below 3705 trending lower, Keybot the Quant would probably flip short. The SPX begins at 3748 so the bears have their work cut out for them. The historic times continue. Watch VIX 25.31; it tells you everything you need to know.

1/8/21; 9:00 AM EST =
1/6/21; 3:59 PM EST = +67; signal line is +63
1/6/21; 2:53 PM EST = +53; signal line is +64 but algorithm remains long
1/6/21; 10:10 AM EST = +67; signal line is +64; go long 3745; (Benchmark SPX for 2021 = +0.3%)(Keybot algo this trade = +0.3%; Keybot algo for 2021 = +0.3%)(Actual results this trade = +0.6%; Actual results for 2021 = +0.6%)

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