Keybot the Quant remains short. The stock market went to Hell in a handbag late last week. Friday was ugly with the SPX dropping almost -3%. Futures are down to begin the week. China indexes crash -5% and more overnight as COVID-19 attacks Beijing. Commodities, and copper, sell off since China is the largest user of commodities on the planet.
The US stock market suffered serious internal damage. Bears are cruising with the algo number 54 points below the signal line.
Friday's carnage started with higher volatility. Fed Chairman Powell's jackboot slipped off the throat of volatility so the VIX jumps higher sinking stocks. Next, copper failed which is a biggie. If Dr Copper is sick, everyone is sick. Then, as the stock market stumbled trying to regain its footing, pow, the knockout blow is the failure in retail stocks. The SPX falls to the mat.
The selling will continue if commodities and utilities weaken. The bulls can immediately stop the selling if they push RTH above 181.48, CPER above 28.27 and/or VIX below 23.65. Any 1 of the 3 will do.
Copper futures are trading lower. VIX is at 29.31. It looks like the bull's hopes are pinned on retail stocks while the bears plan on beating utes and commodities with a baseball bat.
With the VIX near 30, the intraday point moves and day to day point moves will increase dramatically. Hold on as Brittany sings.
5/1/22;
7:00 PM EST EOM =
4/26/22;
10:00 AM EST =
4/24/22;
7:00 PM EST = -19; signal line is +35
4/22/22; 10:13 AM EST =
-3; signal line is +37
4/22/22; 9:37 AM EST =
+13; signal line is +38
4/21/22; 12:13
PM EST = +27; signal line is +39; go short 4453; (Benchmark SPX for 2022 = -6.6%)(Keybot algo
this trade = +0.8%; Keybot algo for 2022 = +3.4%)(Actual results this trade = +1.5%;
Actual results for 2022 = -2.9%)
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