Keybot the Quant remains long as copper turns bullish. Every time that Doctor Copper is lying on the gurney asking for Last Rights, a doctor shoots him up with morphine so he jumps off the sick bed and dances a jig of joy. The bulls are firmly in charge with the algo number 16 points above the signal line after the prescheduled number prints this week.
It just got harder for the bears since they have to flip a parameter bearish, and maybe two, or at least flip one bearish and let it jog above and below the line in the sand a time or two to place the quant in the position to go short.
Wednesday, tomorrow, is Fed rate decision day. Stocks are usually higher leading into a Fed meeting, like now, and also higher through the full moon, so the bulls have the wind at their backs to begin the new week of trading. Will Wizard Warsh provide a trick or a treat? There are also important AI earnings reports on tap that will move markets.
Hump day is a dual cage match with banks and copper against vol and utes. XLF 55.60, CPER 39.59, VIX 16.23 and UTIL 1113 tell the stock market story ahead. Banks and copper are in the bull camp pumping stocks higher. Volatility and utilities are in the bear camp creating negativity.
Bulls need VIX below 16.23 and/or UTIL above 1113. It is meaningless that bulls are rallying the stock market unless the VIX loses 16.23. If the bulls cannot push VIX below 16.23, US stocks will fold like your cheap suit. A lower VIX below 16.23 gives its blessing to the bulls to take stocks way higher. Bulls will also receive upside strength for equities if UTIL moves above 1113. Utes have not been in play for a few weeks, until now.
Bears need to pull XLF below 55.60 and/or CPER below 39.59. The banks are a much easier target for bears but, as stated above, price will likely need to jog above and below 55.60 a couple of times to set-up the robot to try and go short. If XLF or CPER turn bearish, consider the imminent turn to the short side to be in play for Keybot the Quant. The SPX likely needs to lose 7677 for the quant to flip short.
EOM is Friday for trading in October and November trading begins on Monday. Halloween is Saturday so hopefully all of you will get a lot of candy. Clocks also fall back one hour this weekend.
Pittsburgh musician and singer Donnie Iris croaks at 83. He had an interesting career with a #1 hit decades ago with The Jaggerz called The Rapper. Yinz may recognize other hits like the song Ah! Leah! Donnie was doing great rock 'n roll screams before anybody knew what they were. He was music royalty in Da Burgh. RIP King Cool and in Heaven, don't forget to Play that Funky Music white boy. He had that hit with Wild Cherry. He was singing at an event last month. Donnie sang all the way until bladder cancer finally cut him down.
11/1/26;
7:00 PM EST EOM =
10/27/26;
10:00 AM EST = +6; signal line
is -10
