LULU Lululemon Weekly Chart; Falling Wedge; Oversold; Positive Divergence

Poor LULU has been beaten to a pulp. Such a sweet thing that now lies in a puddle of dumpster juice in the alleyway behind the bar. Lululemon has been ridden hard and put away wet. There are competitors to the LULU leggings nowadays so they have lost market share. Ladies are buying some of their needs at the dollar store these days instead of going with the expensive Lululemon name brand.

But the holidays and Christmas are coming and the women are going to want presents under that tree. For the men, are you going to give her a pair of cheap dollar store leggings or are you going to spend the dough and get the Lululemon items since it is a judgement on how much you care about her? Yes, relationships are complex. Ladies want to feel special with the name brand. Sales should pick up for the holidays and the stock can not get beaten down much further, or can it?

To raise sales, maybe they should bring back those see-thru leggings. The men sure appreciated all the free shows at the grocery store and post office. Whoops, I am an old man that dropped his pen on the post office floor and it is difficult to bend over with my sciatica. Oh, thank you miss, oh, wow, thank you very much. Whoops, I dropped it again.

Anyhoo, the chart is in positive divergence and expected to pop. The falling wedge is a bullish pattern. The RSI and stochastics are oversold agreeable to a recovery. Keystone bot it long at 96 at the open. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

AAPL Apple 2-Hour, Daily and Weekly Charts; Negative Divergence Top

Wait for it.... not yet .... wait ... hey, Keystone is going to short AAPL, ... it must be in the charts... let's get in on the action .....  not yet .... almost .... wait for it ..... wait ........NOW!  SELL AAPL 347! Sell, Mortimer, sell!

He is shorting Apple? How dare he? That is blasphemy! Everybody and his bro and all the investment houses own boatloads of AAPL stock. Keystone must be delusional. No, he is not. It is simple neggie d. The rising wedges are ugly, too.

The Apple 2-hour, daily and weekly charts are in negative divergence across all indicators not a small feat. Price needs a neggie d spankdown in all these time frames. If you are sitting on a lot of profits, Take the Money and Run as Steve and the band sing.

Keystone is short from 347 so we'll see how it goes. It will be tossed back if the hype about Apple's products continue. The lates Apple offerings look like a bunch of rewarmed pizza. The latest Apple video is mocked on social internet. It shows an annoying a-hole family, that is supposed to represent Americans, using their products. It is nauseating. If your family is like that, they suck. Apple commercial. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

COPPER Weekly Chart; Overbot; Rising Wedge; Negative Divergence

For decades, the biggest users of copper were housing (plumbing) and automobiles (electrical motors and wiring). When Doctor Copper was sick, the economy and markets would catch pneumonia. An ole Wall Street adage is "every boom has a copper roof" or "a solid market is built on a copper roof." There are many variations. This has not changed. King Copper always rules the roost and in the present day, copper is serving as a proxy for the build-out of the artificial intelligence (AI) boom.

As a rule of thumb, when copper is sick, so is the stock market and the economy. All three lie in bed together. AI has been around for 4 years already. Time flies when you are having fun. Where's that cure for cancer? AI was supposed to cure cancer. Does it need another 4 years or will we hear any day that cancer is cured? It sounds like stupid talk like 15 years ago when idiots said everyone would own and be driven around in an autonomous car by now. These are fleece sweater wearing tech people talking their book.

Isn't it interesting that all these smart people spew about AI all day long and no one is able to provide short simple explanations of AI and what it is doing to save companies money? Maybe nothing. Maybe it is costing them money. If your company is running efficiently with its current enterprise system that controls the flow of work through the facility, why would you be an idiot and disrupt all that, and take on all those costs and hassles, to squeeze out small amounts of productivity? It would be CEO malfeasance.

Copper is a great proxy for AI and the data centers. AI has handed the US stock market big gains over the last 4 years; it saved the stock market from giving up the ghost providing a 4-year reprieve to the bloated balloon. You can see in the chart, copper followed a nice uptrend channel and then for the last 2 years, copper catapults higher on the glory of AI and data center construction for as far as the eye can see.

However, price moves higher into the rising wedge pattern never a good sign. The collapses from rising wedges can be quite dramatic. Price is squeezed-in by the tight standard deviation lines so a big move is on tap. Tight bands do not predict direction but the assumption is down and it may be a biggie over the coming weeks.

Price makes higher highs but the chart indicators are all in negative divergence (red lines). RSI and stochastics are coming off overbot levels. Copper should receive and begin a multi-week neggie d spankdown. The chart is beautiful during the last 4 years, but ugly from here forward; that sounds like people's relationships. The ADX pink box shows that copper was/is in a strong uptrend but is just about to fall below 26-28 indicating that the strong trend higher has petered out and is no longer in place.

The Aroon is what you would expect at an important top. The green line is overbot so all the copper bulls believe copper will go up forever. Comically, the red line is oversold showing that there are no copper bulls remaining. They have all left town and are now bullish on copper as well. The copper boat is fully loaded to the bull side with everyone partying long into the night but no one realizes the waterfalls are quickly approaching.

Keystone is not playing copper or its derivatives long or short currently but obviously, short is the path forward for copper on the weekly basis. It never ends well if someone starts poking around Copperhead Road. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

JNJ Johnson and Johnson Weekly Chart; Ongoing Multi-Week Negative Divergence Spankdown

Some folks were thinking about going long Johnny John. Don't do that. Go to the john instead and save your money. JNJ bulls have to be happy doubling their money in a year but the glaring rising wedge, negative divergence across all indicators, overbot conditions, and upper band violation, said that down and the start of a multi-week slap down was on tap, and it occurs. The RSI and stochastics fall into bear territory sub 50%.

Price is hesitating at the 20-wk MA at 257 deciding which side it likes. The chart indicators remain weak and bleak wanting lower lows in price on the weekly basis going forward. You want to wait until the downside plays out and positive divergence sets up on the weekly chart to go long. It may take a month or so.

If you bring up the daily chart, you can see it is set up and setting up with positive divergence and she pops a couple percent off the possie d launchpad today. There is likely a few-day or week or two relief rally on tap, say up to the 20 and 50-day moving averages at 262-264.

But price will then roll over lower again because the above chart, on the weekly basis, remains weak and bleak. Trading is like playing multi-dimensional chess only time is the dimension not space. The daily chart wants to see some up but the weekly chart says down is the path forward. The 220-235 area may be the landing zone for a few weeks from now after the multi-week neggie d spankdown plays out.

Keystone is not playing JNJ long or short currently. If you are nimble, you can play long for a few days but do not stick around. Obviously, the easier play is short and hang tight for a few weeks letting the chart above play out, then you can flip the position long if the weekly chart indicators display positive divergence. Johnny John, we hardly knew ye. Johnny B Goode with the girls playing. Orianthi on the right is one of the best female guitarists in the world and known for playing with Michael Jackson; she's an Aussie girl that cannot put a guitar down. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Keybot the Quant Turns Bearish

Keystone's trading robot, Keybot the Quant, flips short today at SPX 7732 so the choppy drama continues. Retail stocks, copper and volatility are running the show. All 3 are bearish creating stock market negativity.

Keybot the Quant

AMD Advanced Micro Devices Daily and Weekly Charts; Negative Divergence; Price Extended

Oh AMD, we hardly knew ye. AMD is a hot darling of the stock market right now sashaying her semiconductor body all around the trading floor sending equities to the moon. AMD, MU, NVDA, AAPL and MSFT are the AI and stock market leaders in recent weeks. NVDA, AAPL and MSFT, only 3 stocks, ridiculously account for one-fifth of the stock market.

Is anyone using that jackass AI to SI nomenclature change that King Donnie Chumpski proclaimed? Stupid and idiotic. Trump is jealous of Al Gore that invented the internet so Donnie wants to be known for inventing AI, er SI.

You have AI, artificial intelligence, AGI, artificial general intelligence, and ASI, artificial super intelligence. These three happen in order. Right now, we are starting into, and into, AGI. All the doomsday stuff you hear about AI is in reference to ASI when all the computer systems in the country and world are tied together and smarter than man. That is not now. That time in the future, from one to 10 years forward, is when a catastrophic outcome may occur for the 8 billion souls on Earth so 'let not your hearts be troubled'. The orange-headed idiot succeeds once again at creating confusion now infusing his jackass SI into the AI, AGI and ASI standard industry nomenclature.

The other reason Trump's AI to SI change is stupid is because it removes the word artificial. You do not want to do this. It must always be known that the intelligence is artificial and machine-driven via large language models (LLM) and regenerative code and it is not equatable to human intelligence. The jackass SI nomenclature removes the artificial inference. You do not want to do that.

Everyone is too caught up in the AI hype throwing billions at promises. It is like Wimpy asking, "I'll gladly pay you Tuesday for a hamburger today." Emperor Jensen, Lord Dario, King Altman, Prince Nadella, Emperor Ternusaround, His Majesty Musk, and the whole Hee-Haw gang, are Wimpy asking for billions, even some trillions if you got them, today, for AGI and ASI tomorrow. As they say in the Bronx, "Good luck wit dat."

Anyhoo, AMD is cooked with all the chart indicators for both the daily and weekly time frames in negative divergence. That is a stock you do not want to own for the coming weeks. The current hype and bullish euphoria can carry on for a few days or week or so but the expectation will be for a neggie d spankdown in both the daily and weekly time frames to begin anytime. It will be the start of a multi-week drawdown in AMD.

The weekly chart is extended above its moving average ribbon (price above the 20-wk MA, above the 50 above the 200) so a mean reversion lower is desperately needed in the weekly time frame. Look at the lower volume in recent weeks on the weekly chart. For all the hype and bullish euphoria for AMD, why are only the bagholding suckers buying the stock? Because the smart money is sneaking out the back door while they tell everyone on television that AMD is the best thing since sliced bread. Pump and dump, baby.

The daily chart shows a doji candlestick for yesterday that can indicate a change in trend at hand. If you are in AMD long, it is time to exit stage right unless you want to ride it lower for several weeks forward. If you have juicy profits, scale yourself out. You can sell a third today, sell a third next week, and then sell the final third the week or so after that. By then, she would be expected to be rolling over and heading lower.

Keystone is not in AMD long or short right now but obviously, short is the play going forward on the daily and weekly time frames. Keystone has started to short the semiconductor sector starting yesterday. Donnie Trump was campaigning down at Choctaw Ridge the other day but he did not mention that Billie Jo MacAllister jumped off the Tallahatchie Bridge. Bobbie Gentry. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Friday Morning, 10/9/26, at 6:43 AM EST: AMD is hit -4% yesterday. King Donnie throws a temper tantrum and proclaims that anyone that does not use his new SI instead of AI term is "the enemy," and the twit places the words in caps in his tweet signifying that he is yelling. What a child. The orange-headed idiot moans about his new stupid SI term that everyone ignores while at the same time he names an "AI Czar." You cannot make the stuff up. Pure idiocy. Do you notice that Trump just does not have the gravitas he used to? He is looking more and more like a confused old man nowadays. Young folks on social media are now proclaiming, "I am the enemy."

Note Added Wednesday Evening, 10/14/26, at 5:21 PM EST: AMD collapses from 659 to 567 now at 570 a -14% drop in the last 6 days. That will leave a mark. The AMD neggie d spankdown begins and the multi-week down move is underway. The daily chart may bounce in a few days, simply watch for possie d to call the bottom, but that will be a short-lived relief rally for a few days or week or two, then roll over again to the downside to resume the multi-week smackdown. The SOX drops from 13350 to 11640 now at 11684 a -13% drop in 6 days. SSG, the 2x inverse ETF runs higher from 9.45 to 11.76 a +24% gain in 7 days. That is tasty. Keystone can eat hamburgers and French fries tonight instead of franks and beans. The chips are getting pummeled.

Keybot the Quant Turns Bullish

The Keystone Speculator's trading robot, Keybot the Quant, flips to the long side yesterday at SPX 7766. The sideways choppy slop is relentless. Copper and volatility are running the show. Both are bullish creating the lift in equities along with oil prices relaxing lower. Watch CPER 39.63 and VIX 16.24 as the bull/bear lines in the sand. Do not be surprised if the quant whipsaws back to the short side in a day or two. Sideways choppy slop chews up bulls and bears alike.

Keybot the Quant

CPCE CBOE Put/Call Ratio Daily Chart; Put/Call Ratio at 5-Year Low Signaling Rampant Complacency, Bullish Euphoria and Fearlessness; Sell, Mortimer, Sell

The CPCE CBOE Options Equity Put.Call Ratio dropped below 0.4 signaling rampant complacency, bullish euphoria and fearlessness in the US stock market. No one believes that stocks will ever go down again. The bears have all left town. There are only very bullish and euphorically bullish bulls remaining. Sure, that should work out well (said cynically).

The put/call ratio is the lowest since late 2021 when the stock market topped out. The SPX then crashed -25% over the next 10 months. The put/calls then spiked higher in Q4 of 2022 signaling rampant panic and fear so that was the perfect time to buy stocks. People's hair is on fire and they will do anything to get out of the stock market. A high put/call ratio signals that people never want to own stocks again as long as they live so you will be glad to take their shares off their worried hands.

John Doe, Sammy Sixpack, Savita Sucka and Bonita Bagholder are buying with both fists right now caught up in the AI and semiconductor hype. The guys and gals on television tell you to buy, buy, buy, because they are unloading their shares at the top locking in their juicy profits; they need bagholders so they pump and dump.

That is the purpose of that Trump account nonsense putting in $1000 for a child and telling them they will be a millionaire out of high school. It is silliness. What will these folks, now numbering in the millions, say when their Trump account is worth only $800 bucks a year from now? However, the wealthy class would have gotten theirs and then they will tell you not to forget that you are an investor for the long term (they weren't). Don't you love crony capitalism filth? It is a disgrace that the US government and corrupt investment houses tout the Trump accounts and not one single person ever said that "past performance does not guarantee future results." Instead, they provide fuzzy math promising vast riches every year forward forever. They are corrupt thieves always implementing policies that allow the backroom grift.

Applying the -25% to the SPX at 7723, that would be a drop of 1931 points, and a landing spot of 5792 by summertime if this 2022 fractal plays out again. The US stock market has rallied for the last 4 years with the AI hype carrying most of the load reminiscent of the dotcom bubble. Plan accordingly.

If you are new to stock trading and proud of yourself for making a little bit of money, get yourself out before you get hurt. Ditch your longs and let the money sit in your brokerage account in cash for the next few months. It is dusk now, and the sharks are starting to swim in the darkened waters anxious to begin feeding. Do you want to keep swimming? Sell, Mortimer, Sell. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Keybot the Quant Turns Bearish

Keystone's trading robot, Keybot the Quant, flips to the short side at SPX 7653. Copper and volatility are creating negativity in the stock market while the NYA index creates positivity. One or more of these metrics will flinch and expose the path forward. The US Monthly Jobs Report is at 8:30 AM EST so everything is noise until the BLS brings the numbers down from On High and tells traders how to trade.

Keybot the Quant

SPX S&P 500 Monthly Chart; Overbot; Negative Divergence Developing; Upper Band Violation; Price Extended; Historic Stock Market Top At Hand

This month is looking a lot like last month. Stocks staggering sideways like the drunk in Times Square last evening. The US stock market is at a historic top but, as all these charts have explained the last few months, you have to wait for that pesky MACD to go neggie d before the top can be confirmed (blue circle).

All other chart indicators are in negative divergence (red lines) with overbot conditions agreeable to a multi-month smackdown ahead. Price made the matching high as compared to August so it is all systems go for a neggie d spankdown, in this case a multi-month if not several year beat down in stocks, except for the MACD. There are 3 trading days remaining in September so a big downdraft move in stocks in the week ahead may be enough to pull the MACD lower into negative divergence but it may be too tall of a task in the limited time.

With all the wild choppy ups and downs this month, the MACD went neggie d a few times but it was then stick-saved to still show the upward slope in the blue circle. The MACD is in nosebleed territory. The guy selling peanuts refuses to walk all the way up there, into that thin air, to sell a bag of nuts. This means that stocks can simply begin lower and start the multi-month pullback right now without the MACD going neggie d (because it is already in the stratosphere with nowhere to go but down).

October trading starts Thursday so check the monthly chart then because a new candlestick will be showing for the new month. It may be a repeat set-up like the end of last month. Price will remain elevated with matching or higher highs. Bears would be happy with this because any slope lower in the MACD locks-in the negative divergence going forward and the stock market is toast. Remember, you have to wait until you see the white's of their eyes, or in this case the blue circle.

The SPX has tagged the upper standard deviation band so a trip lower to the middle band, also the 20-mth MA, at 6741, and rising, is on the table for the weeks and months ahead. Ditto the lower band at 5552 and rising.

The Aroon is as expected for a historic top. The green line shows that every bull believes the stock market will go up forever and there is no end to the equity glory gravy train. This Train Is Bound for Glory. Everyone is in party mode. The red line is almost back into oversold territory in other words, the vast majority of bears also believe that stocks will continue higher forever, just like the bulls, again, this would be expected at a historic top.

The purple circles show the distribution months where the smart money is sloughing off shares to Amy Sucka, Joe Sixpack, Carlos Bagholder and Fiona Fool. Pump and dump, baby. This is why the Wall Streeter's walk around in $5,000 custom-tailored Armani suits. The investment houses parade across television and internet screens telling you to buy, buy, buy, and they just so happen to have some shares they can sell you. They do not want you to miss out on the fun (said the spider to the fly).

The volume candlesticks show that as retail investors are excited one month, bam, bam, the smart money dumps shares to the dumb money the following month taking advantage of the bullish optimism. Rinse and repeat at a historic top to provide the smart money enough time to ditch a lot of their longs. When stocks collapse, Amy, Joe, Carlos and Fiona are crying in their beer wearing barrels as the fat cats smoke cigars laughing at the average person's greed and stupidity that is so easily manipulated. Are you the dumb money? Are you going to be a bagholding sucker?

Watch the next 3 days to see if the bears can stomp stocks lower and get the MACD to go neggie d, if not, no biggie, check it at the end of the week with the new October candlestick underway. It is exciting with this historic top at hand and we will be in the ominous month of October known for epic crashes. Are you excited? Are you ready or are you drinking the Kool-Aid? Is it the End of the Line? Just some guys hanging around playing their guitars. They show the rocking chair with Roy's guitar where he used to sit and play; one friend gone. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Thursday Evening, 10/1/26, at 8:20 PM EST: As explained above, it is October and a new candlestick begins for the monthly chart. September ends with the MACD line still sloping one single hair higher but today, with price making the matching high, all the chart indicators, including the MACD, are now neggie d. Last month there were a couple of these occurring but the bulls battled back. Tomorrow is jobs day so watch the MACD to see if it slopes higher if stocks rally. If not, and the current neggie d remains in place, the long-term top (multiple months and perhaps a couple years of down is ahead) for the US stock market is in place; it is historic and you are watching it in real time. Lower the lifeboats! The Titanic stock market is sinking! Women and children board the lifeboats first! Harold, remove that babushka and womans coat, you coward. 7666 is an interesting number for the SPX right now. Trip 6's. The stock market bottomed in March 2009 at 666. A key reason that craziness and social unrest has not yet appeared in the US in recent years is due to the rising stock market that calms fears and provides a distraction. Once the stock market rolls over going forward on the monthly basis, all bets are off. People will turn ugly as they see the stock market dropping week after week month after month.

Note Added Saturday, 10/3/26: The big Friday rally brings the MACD line in the chart back to a flattish nature. She is at a multi-month top but the non-reversible confirmation may have to wait until the end of the month when October is cast in concrete and the November candlestick begins. Nonetheless, be on guard for stocks to fall apart at anytime and begin the multi-month slide lower.