Keybot the Quant remains short as the new year of trading is set to begin. The bears are in charge with the algo number 27 points below the signal line. The year begins at SPX 5882 with the robot in the PSQ inverse ETF. The algorithm is rezeroed for the year ahead.
Volatility, banks, retail stocks and semiconductors soiled themselves this week creating the stock market weakness. The hot battle now is the VIX 17.03 bull/bear line in the sand. It is uber important with bears winning above, like now at 17.35, but bulls will win below 17.03.
Bulls need VIX below 17.03, or XLF above 48.60, or RTH above 225.55, or SOX above 5058, to stop the stock market selling. At least 2 of the 4 will need to flip bullish to position the robot to go long.
Bears need to keep the above parameters bearish and at the same time pull NYA below 18804 or GTX below 3580.
If utilities fail, with UTIL dropping below 955, the stock market will likely crash.
Bulls must crush volatility while exalting banks, retail stocks and chips. Bears must push commodities, utilities and the NYA index lower to create market carnage. Let the festivities begin.
Traders wonder if a big shakedown is coming in the stock market. Well, it's been a long time comin'. Investors and traders made a lot of dough on the long side in 2024 and may want to immediately lock-in the profits in 2025, and not be liable for the tax bill for another year (instead of selling in December). January may be epic. A Shakedown in Berlin.
1/5/25;
7:00 PM EST =
1/1/25; Begin
2025 Data = -32; signal line is -5; go short 5882; (Benchmark SPX for 2025 =
+0.0%)(Keybot algo this trade = +0.0%; Keybot algo for 2025 = +0.0%)(Actual
results this trade = +0.0%; Actual results for 2025 = +0.0%)
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