Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Tuesday, June 30, 2020
MSFT Microsoft Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation; Price Extended
Mister Softy is a powerhouse. The FAANG's (FB, AAPL, AMZN, NFLX, GOOGL) receive the attention but MSFT should be included as well. Microsoft is the tech powerhouse with price a moonshot over the last decade as the Federal Reserve and other global central bankers pump, pump, pump. Comically, the chart looks like a commodity chart. This stuff always ends in tears.
The MSFT monthly chart is very similar to AAPL's chart that was posted a couple days ago. Today is the EOM, EOQ2 and EOH1 so the monthly charts receive the print for June, that is cast in stone, and the July candlestick begins tomorrow. The chart is amazing. 20 bucks in 2011 gets you 2 hundo, a 10-bagger, in 2020, only 8 or 9 years later. The wealthy, that own large stock portfolios, dance with glee laughing at the stupid huddled masses that do not own a single share of stock (one half of America).
Like all other stocks and the indexes, 2020 is shaping up to be an epic and historic top. The indexes are driven higher by the blue chip tech stocks. Microsoft and Apple will likely be the last two major stocks to roll over. As the previous Apple technical analysis shows, AAPL is on pace for a significant long-term top to occur anytime say over the next 6 weeks. MSFT is in the same boat. These two stocks have serious momentum and institutional support so they do not want to go down without a fight. The technicals, however, suggest it is time to prepare for the upcoming funeral. Black masks will be distributed.
Time for some mumbo-jumbo. Remember, this is a monthly chart so the coming rollover is a serious matter where price may not see these levels again for many months if not a few years. But Mister Softy is not ready for the morgue yet. If you enjoyed the big multi-year rally, however, now is the time to execute your exit plan. Price is at overbot levels or coming off overbot levels for the RSI, stochastics and money flow, agreeable to a pullback. The rising wedge is ominous since the collapses from rising wedges can be quite dramatic.
The chart indicators (red lines) are in universal negative divergence except for the MACD line that remains long and strong (sloping higher); ditto the histo. Thus, price wants to drop in this monthly time frame going forward right now due to the above reasons and neggie d, however, MSFT will want to come back up again in this monthly time frame to satisfy the MACD that still has fuel in the tank to pump price. So a jog move is likely, down in July then back up in August for a matching or higher price high, and the MACD goes neggie d, sealing the fate of Microsoft and calling the long-term top. From there, it would be multi-month sideways to sideways lower price action.
As mentioned in the Apple post, since tomorrow is July, something very special may occur. If the bulls can keep the stock market steady today, tomorrow, July, will begin at a matching or higher price high (for AAPL and MSFT), which opens the door to the significant top occurring right away. Watch these monthly charts closely because if price prints a matching high in July (Thursday or Friday), and you see that MACD line flat line, its over now. That would be neggie d and all indicators would be on board for the smack down to begin. At any rate, like Apple, Mister Softy will top out anytime over the next few weeks and then a multi-month down move begins.
Isn't it interesting that we are at the tip-top in the stock market right now, with a long-term multi-month and multi-year down move beginning any day ahead. No one sees it coming.
The ADX remains elevated so the beloved MSFT stock remains well bid and in a strong uptrend. The ADX, however, is a hair weaker from peak to peak and on this lustful high print, the ADX sneaks a hair lower. This is the only indicator on the chart (besides the MACD and histo discussed above) that is bull-friendly. The pink box shows the ADX calling out a strong upside trend in MSFT since early 2014.
The Aroon is at maximum euphoric off-the-charts bullishness for Microsoft. Investors and traders are enjoying an orgy so bullishly obscene that it would make Caligula blush. Stockholders attending the soiree and witnessing the bullish action first hand wonder why they call such a strong performer Mister Softy. The universal consensus for MSFT is completely 100% bullish and buy, buy, buy! What does that tell you? It is reminiscent of the frenzy during the dot-com bubble.
The Aroon green line is pegged at one hundo with nowhere to go but down while the red line is crushed to zero with nowhere to go but up both indicators are bearish. As seen the last few years, however, price can keep heading higher. But looking closer you can see that every time the Aroon indicators are pegged they come off those levels which equates to MSFT selling off.
February and March is strong trading volume while the last three months the volume is not overly impressive, it is just enough to show that inexperienced novice traders are jumping on the Microsoft bandwagon, bragging that they are Jesse Livermore, bidding the price higher on hype. MSFT has violated the upper standard deviation band so the middle band at 141, and rising, is on the table as well as the lower band at 87. Price is extended above the moving averages requiring a mean reversion lower which piles on more bearish stuff.
It would not be surprising to see MSFT in the 150-170 range over the next couple months or so, then at 120-150 at year end and moving to 80-120 in 2021. This will be a surprise to everyone especially the bagholding retail sucka's that are buying MSFT and AAPL now.
MSFT is up +0.3% in early trading to 199 pushing for 2 hundo. Keystone's 80/20 Rurle says 8's lead to 2's so the breach of 180 opens that door to 220 so that may be its swan song high anywhere between 199 and 230.
Keystone does not hold a position long or short MSFT or AAPL right now. Only the short side would be considered but as mentioned, you have to be very leery of shorting a stock with momentum and strong institutional support. The shorter term charts are critical for timing a short entry (hourly charts). As this summer plays out, people will realize that we have "been to the mountain top." 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.
Monday, June 29, 2020
XLV Healthcare ETF Monthly Chart; Overbot; Negative Divergence; Double-Top; Upper Band Violation; Price Extended; Long-Term Top At Hand
The communications and healthcare sectors were the big winners in Q2 staging sharp rallies to new record highs. XLV is the healthcare ETF forming a double-top, or M Top. The RSI, stochastics and money flow are overbot or coming off overbot levels agreeable to a pullback. The red lines show negative divergence in play across all indicators so an epic top is formed. The current highs in XLV will likely not be seen again for many months or years.
The neggie d spankdown during February and March was a long-term top. There was no reason for price to come back up for another high, except, rich Uncle Fed printing more money and that is what happened in late March. Boooiiinnnggg. Stocks pop on more easy money creating the matching highs and double-top. Nothing has changed. The Federal Reserve has only served to dig a deeper hole for itself and the country. The red lines show universal neggie d as price makes a matching and higher high so this is another top on the monthly chart and long-term failure would be expected. XLV will move sideways to sideways lower for the foreseeable future.
The pink box shows XLV in its strong upward trend from 2013 through 2018 that is six long years ruling the roost, but that petered out. The 3-month rally higher right now is not a strong trend higher as per the ADX. The Aroon negative cross from February/March remains in play and signals weakness ahead. Check out that huge volume candle at the March lows. Price will need to come down to take a look at that level again. Price is above its moving averages so a mean reversion lower is on the table.
Price has violated the upper band so the middle band at 92, which is also the 20 MA, is on the table and the lower band at 81 (bands not shown on the chart). There is lots of price support at the 85-ish level so price may seek that as initial support. As the year plays out into 2021, do not be surprised to see XLV fail at 85-ish and then seeks the 60-70 landing zone. Keystone does not own XLV long or short but will look to short it going forward. 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.
XLC Communications ETF Monthly Chart; Overbot; Negative Divergence; Double-Top; Upper Band Violation; Price Extended; Long-Term Top At Hand
The communications and healthcare sectors were the big winners in Q2 staging sharp rallies to new record highs. XLC is the communications ETF forming a double-top, or M Top. The RSI, stochastics and money flow are overbot or coming off overbot levels agreeable to a pullback. The red lines show negative divergence in play across all indicators so an epic top is formed. The current highs in XLC will likely not be seen again for many months or years.
The neggie d spankdown during February and March was a long-term top. There was no reason for price to come back up for another high, except, rich Uncle Fed printing more money and that is what happened in late March. Boooiiinnnggg. Stocks pop on more easy money creating the matching highs and double-top. Nothing has changed. The Federal Reserve has only served to dig a deeper hole for itself and the country. The red lines show universal neggie d as price makes a matching and higher high so this is another top on the monthly chart and long-term failure would be expected. XLC will move sideways to sideways lower for the foreseeable future.
The pink box shows XLC in its strong upward trend but that petered out in the middle of last year. The 3-month rally higher right now is not a strong trend higher as per the ADX. Look for a potential Aroon negative cross which will signal the soggy times ahead. Check out that huge volume candle at the March lows. Price will need to come down to take a look at that level again. Price is above its moving averages so a mean reversion lower is on the table.
Price has violated the upper band so the middle band at 48.80 is on the table and the lower band at 41-42. There is lots of price support in this area. As the year plays out, do not be surprised to see XLC down at 41-42 and over time that will likely fail with price targeting the 28-32 area perhaps by year end into early 2021. Keystone does not own XLC long or short but will look to short it going forward. 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.
Sunday, June 28, 2020
AAPL Apple Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation; Price Extended
Apple is placing its long-term top over the next month or two and will begin its swan song. Remember at Christmas time, people were buying AAPL stock for their children as a gift. The chart said down and that is what happened disappointing the kiddo's. The brown circle shows the mini Tweezer top with overbot conditions and neggie d for all indicators. There was no reason for Apple to come back up except the Fed's easy money shenanigans and the pump begins in late March. Traders and investors buy AAPL with reckless abandon celebrating the Federal Reserve's money printing schemes. The Fed easy-money wine flows like water. The world remains awash in liquidity.
So the top is extended with another new all-time high. Timmy Trader said he has placed 100% of his clients money in AAPL stock since it will never go down again. If you are one of those people that bot your kids Apple stock, teach them how to sell shares and scale out of a position. Have them out of AAPL stock within the next two months, otherwise, they will opine on the upcoming holidays about how the gift last year sucked.
The red lines show the rising wedge pattern in play which is bearish. The collapses from rising wedges can be quite dramatic. The RSI and stochastics are overbot agreeable to a pullback. The chart indicators are in universal negative divergence except for the MACD line that remains long and strong and wants price to come up for another high in July which is only 2 days away. A jog move will be needed down in July and back up in August for the top when price prints a matching high and the MACD line goes neggie d. The top may come sooner. The last top came with that Tweezer Top where price prints the matching high and then drops like a rock. The MACD must turn flat or down with neggie d before you can call the top but it is either July or August and it is a long-term top (months and perhaps years). Apple will eventually revert back under the 200-month MA which is down at 76 and rising.
The purple stars show that the trend higher becomes weaker with each top. The ADX drops lower and lower and now signals that the strong move higher in AAPL price over the last 1-1/2 years is NOT a strong trend higher. The Aroon green line is pegged into the ceiling with nowhere to go but down which is bearish.
Price has violated the upper band so the middle band at 232 is on the table as well as the lower band at 118. Price is extended above the moving averages requiring a mean reversion lower.
Interesting. The AAPL weekly chart is in full neggie d right now with a shooting star candlestick. That chart is ready to drop now. The daily chart started receiving a neggie d spankdown 3 days ago. AAPL can be shorted going forward. Since July is so close, if AAPL price can hang in there a couple days at current levels, Apple will top out quickly, perhaps over the next week or two will be the long-term top. If AAPL drops right now and begins July substantively lower in price, Apple will likely want to rally back after the multi-week downturn from the weekly chart takes place. This would hint at the August top. If a long-time successful holder of AAPL, scale-out in thirds. Sell one-third now, one-third in a month and the final third the month after that. Do not be surprised to see AAPL in the 150-240 range at the end of the year. AAPL can be shorted going forward through the end of the year.
AAPL is $1.5 trillion market cap. The S&P 500, the US stock market, is $23.0 trillion market cap. Apple makes up 6.5% of the SPX by market cap. AMZN is 6%. FB is 3%. NFLX 1%. GOOGL makes up 4% of the S&P 500 by market cap. Together, the 5 FAANG stocks represent 21% of the US stock market. Ay carumba. May the Lord Have Mercy on Everyone's Soul when the FAANG's reverse. Comically, Apple employs 2 million people. The total workforce is 131 million so humongous Apple with its record market cap that makes up nearly 7% of the US stock market, only employs 1.5% of the workers or only 3 out of every 200 workers. And what benefit is any of this Apple garbage to the huddled masses, common Americans, disadvantaged people, poor folks or disabled souls? Zero. Crony capitalism is a phony and corrupt financial system that only benefits the wealthy class.
Do not swallow the Apple hype. China will screw Cook as time passes. In India, they prefer cheaper phones. The AAPL chart is topping out over the next month or so and these highs will not be seen again for many months and more likely a few years. Keystone does not hold a position long or short in AAPL currently but will probably sniff around the next few days and see if a short entry presents itself. 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.
SPX S&P 500 Monthly Chart; Bulls and Bears Battle for Cyclical Market Control
The bull-bear battle is raging these days and the holiday-shortened week ahead may be full of surprises. As mentioned many times over the years, two of the top indicators you must always keep track of is The Keystone Speculator's SPX Monthly Chart with 12 MA Cross Cyclical Market Indicator and The Keystone Speculator's NYA Weekly Chart with 40 MA Cross Cyclical Market Indicator. When both of these charts are in agreement, the stock market is in that cyclical (weeks and months) pattern and if bullish you want to make sure your portfolio is weighted long and if bearish you want to weight your portfolio on the bear side.
The NYA has remained below the 40-week MA consistently signaling an ongoing cyclical bear market for stocks. The SPX monthly chart above with 12 MA cross, however, shows that the cyclical bear market pattern, that began in late February when price lost the 12-month moving average, flipped back to a cyclical bull market pattern in May. The Federal Reserve saved the day as usual, in this phony crony capitalism world, promising to print money forever so stocks catapult higher from bear to bull.
Now is the fun time. Since the NYA says stocks are in a cyclical bear market, but the SPX says it is a cyclical bull market, one of them is wrong. With the SPX coming back down and in Friday's trade printing 3005 for the LOD, that was within 3 points of the SPX 12-mth MA at 3002; the cliff edge. This is a back test for the bulls to prove that they can take price higher from here. The bulls must bounce price higher from this 3002 death trap and that will light the path to glory for the bulls. If 3002 fails, run for your lives, since stocks will be dropping like rocks and traders will be screaming bloody murder with their hair on fire.
If 3002 fails, that will confirm the ongoing weakness with the NYA 40-wk cross and verify that the stock market is in a cyclical bear market going forward. If the bulls can bounce the SPX from here, they live to fight another day. The bulls would then work on pumping the NYA higher to receive confirmation with the 40-wk MA for a cyclical bull so their work would need to continue.
It is always comical for fundamental traders and non-technicians to become overnight chart experts during tough times. The 200-day MA at 3021 failed on Friday which is important but the real story is the longer term moving averages breaking down. The 10-month MA at 3012 failed and this is a huge deal. It is why stocks went out at the lows and there was no buying interest at the close. It is a serious failure. The old-timer's and lots of algo's have the 10-month programmed into their models. Keybot the Quant does not but does have the SPX 12-mth MA programmed into its model. It is a big deal that the 10-mth MA at 3012 failed. Watch it closely. Even if the SPX bounces around and finishes a couple points higher on Monday, say 3011, that is not good, the stock market will still fall apart going forward. Bulls must push the SPX above 3012 pronto, or equities are in dire trouble.
200-day MA 3021
10-mth MA 3012
50-wk MA 3011
SPX begins the week at 3009
12-mth MA 3002
50-day MA 2980
That 3002-3012 range is quite a cluster; a gauntlet of support. The bulls have overturned furniture, cabinets, tires and signs on Wall Street as a barricade at 3002-3012 and are trying to hold it with all their might. Bulls know that it is over for them if the 3002-3012 support fails. If 3002 fails, price will likely flush to the 50-day MA at 2980 in a heartbeat. A stutter-step may occur at this moving average, but the S&P 500 will likely fold like a cheap suit and keep stumbling lower. If 2980 fails, and you held on to stocks as a bull, you will see your life flash before your eyes as you lose your shirt. Before leaving for home, tell your spouse to hide the rope and knives.
On the bull side, the positive outcome, the SPX needs to quickly overtake the 3011-3012 level and preferably with force. If price can sneak above this 3011-3012 cluster, the SPX will set its sights on the 200-day MA at 3021 where a bounce or die decision would occur.
The table is set. Lots of folks can watch the stock market festivities since they are home sick with the coronavirus (COVID-19) spreading like wildfire across the US. The bears have the inside track since the NYA 40-wk MA cross has remained in a cyclical bear market signal and because the SPX 10-mth MA at 3012 failed. Who will win this week? The bears need -7 points in the S&P futures that begin trading in 10 hours. Will they smile?
Consumer Confidence is released on Tuesday morning. Tuesday is EOM (end-of-month), EOQ2 (end of the second quarter) and EOH1 (end of the first half of the year). The US Monthly Jobs Report is released on Thursday morning since US markets are closed on Friday for the Independence Day holiday on Saturday. Stocks are usually bullish into the holiday weekend but anything goes nowadays. There are four trading days this week two in June and two in July. New money for the quarter, second half and month may help buoy stocks into the barbecue weekend. The SPX 12-month MA at 3002 determines the entire fate of the US stock market. 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 6:03 PM EST: S&P futures begin trading down -20.
Note Added 6:43 PM EST: S&P futures are trading down -8. Looks like the bulls and bears plan on fighting for the 3002 line in the sand tomorrow morning.
Note Added Monday Morning, 6/29/20, at 2:16 AM EST: S&P futures fluctuate on each side of the -7 point cliff edge. Futures drift lower to -12 but then recover to +3 but then roll back over to become sticky at -7 again. S&P futures are down -7 right now. The writing is on the wall. The bulls know their lives are on the line today; they must hold SPX 3002 or it is over. Interestingly, the Nasdaq futures are lower down -0.5% versus the S&P's down -0.2%. Typically, tech leads so if the Nazzy futures are better than the spu's, stocks will usually recover that day regardless of whether they begin up or down. Conversely, if the Nazzy futures are worse than the S&P's, that usually hints at a soggy negative day ahead regardless of whether the stock market trades up or down in the early going. Today will be interesting. The bulls are 10 stories up on the ledge of a skyscraper. There is a window and safety a few feet away as long as the SPX remains above 3002. If Mr Market inches towards the window but slips on bird sh*t, and the 3002 fails, he becomes a red spot on the sidewalk below.
Note Added Monday Morning, 6/29/20, at 3:21 AM EST: S&P futures are on the move higher up +10. Nazzy +1. The bulls are battling. VIX 35.25. Futures are up and volatility is up so one of them is wrong. Oil -1.5%.
Thursday, June 25, 2020
GLD Gold ETF 2-Hour Chart; Overbot; Rising Wedge; Negative Divergence
The GLD weekly chart was posted the other day and that chart is topping out with negative divergence. The GLD 2-hour chart top was described in that post so it is a good idea to show the chart and the neggie d spankdown. Lots of folks were probably surprised to see gold unresponsive during the stock market selloff yesterday. You will have to give it a few days to see how things shake out. The gold charts are agreeable to a rollover and pullback but the negative news in the market may send folks to safe havens and buoy gold.
Perhaps, however, investors and traders are losing confidence in all asset classes realizing that all prices for all goodies be it stocks, bonds, art, antique cars, vineyards, real estate, collectibles, even metals, etc..., are pumped-up and supported by the Federal Reserve and other global central banks money-printing policies. Schemes is a better word. Maybe cold hard cash in your hand will be the only desirable asset for the coming weeks, months and perhaps a year or two. Cash was king during the Great Depression and disinflationary and deflationary periods.
Anyhoo, the chart shows GLD moving up and up printing matching or higher highs, thus, the indicators can be studied to see if they are negatively diverging to show that price is running out of gas, or not. The other day when Keystone mentioned the GLD 2-hour remember he said the MACD was still sloping higher and that may create a couple more hours of upside juice, which it did the next morning, and that was the last hurrah. Look at the selloff before that (red arrow on the left) The indicators were neggie d so you knew that price would be spanked lower but it would come up again because the MACD was still long and strong, and price did for yesterday's top. The rising wedge pattern is bearish and the RSI and stochastics are overbot agreeable to a pullback.
As previously mentioned, be leery of gold going forward; it had a great run. It is set to drift lower for several weeks so you can pick where you want to exit any longs and enter shorts going forward. The top above may be the top for the next few weeks. GLD can be shorted or GLL can be played long although it is traded more thinly. There are lots of other ways to play as well. GLD may initially shoot for that gap fill at 164-165 then the 162 support. It is interesting that there are no gold bears these days, only bulls. Any pundit talking about gold on the internet, television or radio, is saying buy, buy, buy. 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.
XLF Financial (Banks) ETF Daily Chart; Bank Stress Test Results Today; Upward-Sloping Channel
The banks are a central focus today with stress test results released this afternoon. Wow, who knows how that will work out? Pause for laughter. It will be the same-o stuff. All the banks will get a free pass but there will be one or two that receive a little slap on the wrist or fine that will not amount to anything substantive. This is how the crony capitalism game is played. Banks will rally on the news since the big worry is that they will have to keep more reserves on hand or perform other measures that hamper their operations or reduce their dividends. The banks that would be sold off are the ones that have to reduce the divvy; this is the major focus of the stress test circus.
The XLF ETF is a good bank proxy although it is actually a broader financial play which includes insurance companies. The large money-center banks are in the XLF and they have their fingers in all kinds of pies including investment divisions playing the market daily. The banks benefit from the rising yield curve.
The 2-10 spread is at 49 bips give or take. The US yields are; 2-year 0.18%, 5-year 0.32%, 10-year 0.666%, 30-year 1.41%. The 2-10 spread is subtracting the 10-year yield from the 2-year yield. 0.666% - 0.18% = 0.486%. Moving the decimal over two places is 48.6 basis points or 49 bips. As you see, 1 basis point is 0.01%. 100 basis points = 1.0%. The 2-10 spread inverted last year. This is where the 10-year yield falls below the shorter duration 2-year yield and the subtraction number turns negative. Inversions foreshadow recessions that usually begin 1 to 2 years later. The 3-month yield is at 0.13% currently and the 3-month to 10-year spread actually inverted first early last year. This spread is now at 54 bips (0.666% - 0.13% = 0.536%).
The rising yield curve is more important for the regional banks than the large investment banks such as JPM, GS and the other banksters that rely on multiple sources of income. The regional banks are mainly in the loan business so rising yield spreads is very desirable to increase profit margins. Bring up a chart of the KRE ETF and you can follow that one as well.
XLF is enjoying an upward-sloping channel with price dipping lower to perhaps check in at the lower rail for a touch. The rising yield curve buoys the banks. Everything rallied off the March bottom. The ADX pink box shows that the crash lower this year was a strong trend lower but the three-month rally is not considered a strong trend higher. The Aroon red line is in the basement at zero with nowhere to go but up which is bearish. Perhaps a negative cross is on tap.
The chart indicators are rolling over to the downside which should create soggy price action but all bets are off until the rigged stress test results are released this afternoon. The 50-day MA support at 22.79 is holding, so far, watch that closely today. The lower band and lower channel line are in play forming a confluence of support at 21.90-22.24. If this fails, it is all over for the banks and the crying will begin.
Keybot the Quant is short the market currently with the weak banks contributing to the sogginess in equities yesterday. The quant is tracking XLF 23.36 as the bull-bear line in the sand. After the test results, and especially in tomorrow's trading, if XLF loses the 22 level, it is lights out. Banks will stagger sideways in a choppy indeterminate pattern if XLF remains above 22 and below 23.36. If XLF takes out 23.36 to the upside, the bulls win and banks and the stock market will be rallying joyously higher.
The bank stress tests are a rigged phony game so they will all pass, however, watch the price action on XLF. If banks rally but the XLF comes up and stalls at 23.36, that tells you that the banks and stock market are about to be smacked hard. Keystone does not hold any positions in the banks or their ETF's currently long or short. 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, 6/26/20, at 5:12 AM EST: The Fed got creative yesterday. Instead of goosing banks after the stress test results they were goosed before. The XLF rallied and was sticky at that 23.36 area called out above. Restrictions put on banks during the Great Recession (Volcker Rule) were lifted which will enable the corrupt banksters to start freely gambling in the derivatives markets again. Of course, when they get into financial trouble a la 2007-2009, the American taxpayer will bail them out. No wonder the huddled masses are fed up and crony capitalism is ending in America. The Fed says don't worry, everything's gonna work out right. The XLF catapults higher into the closing bell ending at 23.59 with bull smiles all around. The Fed, however, for the stress test results, freezes the bank dividends for a quarter and halts buybacks. Banks sell off in late trading and come back down to that 23.36 area. XLF is currently trading down -1.4% to 23.26 in the pre-market which would usher in stock market negativity. S&P futures -9. VIX 32.71.
Wednesday, June 24, 2020
Keybot the Quant Turns Bearish
Keystone's proprietary trading algorithm, Keybot the Quant, flips short today, just before munch time, at SPX 3069. Banks and utilities give up the ghost. UTIL 762.60 is a key bull-bear line in the sand for this week. The failure created market mayhem but the bulls have pumped UTIL back up to the 767 palindrome. This stops the stock market selling in its tracks. The bears need weaker utes and higher volatility to make headway lower. Stay alert for a whipsaw. More information is found on Keybot's site.
Keybot the Quant
Keybot the Quant
SPX S&P 500 60-Minute Chart with 200 EMA Cross; Sideways Symmetrical Triangle
The stock market is tanking due to the rampant complacency ongoing for the last couple-three weeks. UTIL failed the critical 763 level which flushes the market so keep an eye on that and a couple other things highlighted below.
The blue symmetrical triangle was highlighted the other day. Note the fake-out move out the top and price returned inside and collapsed out the bottom. Price has only barely failed the lower trend line of the triangle so the bulls are battling for their lives. The vertical side of the triangle is about 180 or 200 handles, you can play around with that. So a failure at 3050 would target 2850-2900.
The reason price is hesitating here is because of The Keystone Speculator's SPX 60-Minute Chart with 200 EMA Cross Indicator. The S&P 500 just failed the 200 EMA on the SPX 60-minute at 3053 which ushers in a short term bear market move. The bulls know that they must push price back above 3053 as soon as possible or it is lights out. Conveniently, the triangle trend line is there as well so this 3050-ish level is for all the marbles.
It never gets old watching the greedy little rats run from the sinking ship. The big screens display the bloody Wall Street carnage in real-time as Pachelbel's Canon in D streams full blast across the estate echoing along the hills of the scenic Laurel Highlands of southwestern Pennsylvania. How fantastic. Wunderbar. Look at that greedy little rat; he lost his shirt. There's one they are taking out head-first. Two more are on stretchers behind him. The cello is haunting, the piano flawless. Look at that one, bleeding and unable to move; he must have lost all his clients money. Everyone will get what they deserve over the next couple years. Play on, Johann.
You can gauge the strength of the selloff with the utes, banks and volatility; UTIL 762.60, XLF 23.36 and VIX 37.43 are the lines in the sand identified by the Keybot the Quant algorithm. UTIL is at 762 trying to recover. The failure in utilities opened the trap-door in the market so watch it closely. The banks failed. XLF is at 23.08 a serious rupture below the 23.36 bull-bear line creating a lot of today's negativity. VIX is at 35.09. Bears need 37.43 and higher to destroy the stock market today. The HOD is 37.12. Watch it closely. UTIL is slipping to 461 so you will see the stock market slump again intraday. The sight is fantastic. Look at the greedy little rats run. Run you greedy little bast*rds, run! 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 12:25 PM EST: The SPX comes up for the back kiss at 3053 so it is bounce or die time at the 200 EMA.
Note Added 12:36 PM EST: The SPX is down 82 points, -2.6%, to 3050 on the dot. How do you like that? Is Keystone taking care of yinz or not? SPX 3050, UTIL 763, XLF 23.36 and VIX 37.43 will tell the market story over the next day. Pay attention.
Note Added 12:40 PM EST: The SPX is at 3048 so bears are happy. UTIL is at 761 and XLF is at 23.06 creating stock market negativity. VIX is at 35.27. Bears need higher volatility which will completely lop off the bull's heads. Bulls need higher utilities which will at least hold the bears off at the door. UTIL prints a 760-handle. LOD is 759. If that is lost, the stock market may all-out crash limit-down.
Note Added 12:50 PM EST: The bulls are pumping utes. UTIL is at 763 on the bull side but it is a struggle. If the bulls fail on this back test, the downside may accelerate quite sharply. The bulls have regained UTIL 763 so they better push higher fast. If you shoot the king you better kill him otherwise he will get you. UTIL is at 763.37.............. can the bulls hold the line at UTIL 763 or will it fail again creating death and destruction for equities? SPX 3057.
Note Added 1:02 PM EST: UTIL 764. SPX 3063.
Note Added 1:05 PM EST: Fed Chairman Powell jumps on top of the utilities and he is pumping, pumping, pumping. Wheeee! UTIL 765. SPX 3064.
Note Added 1:27 PM EST: UTIL loses the key 763 level again now at 761 so the SPX slumps to retest the 200 EMA on the SPX 60-minute at 3053. It's bounce or die time.
Note Added 1:31 PM EST: Whoopsies, daisies. SPX slips to 3049 in a flash. Check that, now a 3046 handle. UTIL 761. Bears better kill those bulls now or they will rise up again. Bears need the VIX above 37.43 and the blood will flow like water on Wall Street. VIX is at 35.71. UTIL slips to 760. XLF is at 23.00 ready to print a 22 handle. The banksters are in the back room puking their guts out. Show them no pity.
Note Added 1:35 PM EST: XLF 22.99. SPX 3044. UTIL 760. UTIL LOD is 759.00 so this is key. It is time to place the crash helmet on the head and attach the shoulder harness on the computer chair. If UTIL loses 759, and the VIX climbs above 37, today will end in an epic blood bath.
Note Added 3:20 PM EST: The Fed is pumping those utilities like crazy goosing UTIL to 766 and now up to 770. The bulls dance with glee since UTIL is pushed out of trouble and ditto the SPX at 3063 now up and away the critical 3050-3053 support level. The bulls are bragging that they have rich Uncle Fed protecting them and nothing bad will ever happen to the stock market. VIX 34.19. XLF 23.14. UTIL 769.53. Do you see how UTIL teased down to 759-760 and was on the verge of failure through the LOD when the stick-save occurred? It is funny that the stock market can only be minutes away from big-time failure and people do not even realize it.
Note Added 3:35 PM EST: Mr Market is tip-toeing down a muddy slope. It is slippery, slippy as they say in Pittsburgh, and he can feel his feet sliding. Whoop. Mr Market swings an arm out to catch his balance, he continues stepping very slowly and gently afraid of falling, Mr Market looks like President Trump walking down a ramp. SPX 3056. UTIL 768. The 200 EMA on the SPX 60-minute chart is 3053.43 call it 3053.00-3053.50. If this level fails, the stock market is in serious trouble going forward. If the SPX remains above 3054, the bulls are fine and will live to fight plenty of other days.
Note Added Thursday Morning, 6/25/20, at 3:35 AM EST: The S&P 500 could not hold the 200 EMA so the bears are happy. However, the bulls pushed UTIL back above 763 and the VIX is currently trading at 36.34 not yet above the key 37.43. The battle continues. Utes will likely fail again if the futures hold. S&P's are down -41 currently. Don't you love the smell of napalm in the morning?
The Keystone Speculator Coronavirus (COVID-19) Infection Rate Model Update 6/23/20; Pandemic in the Sunbelt (US South and West); Arizona, California, Texas, Georgia, Oklahoma, Florida, Carolina’s, Arkansas and New Mexico are US Hot-Spots; Houston Running Out of ICU Beds; South Asia, America’s and Africa Experiencing COVID-19 Hell; US, Bolivia, Argentina, Guatemala, India and Philippines are in Serious Trouble; Deteriorating US-China Relations and Increasing US COVID-19 Cases Creating Market Angst; Coronavirus Article 11
By K E Stone
Communist China’s Wuhan coronavirus (COVID-19) bioweapon has
infected 9.4 million people around the world murdering 480K souls (approaching
a half-million). 5 million people have recovered. The Wuhan killer disease has
attacked and sickened over 2.4 million Americans (0.7% of the 330 million US
population) murdering over 123K United States citizens. 1 million people have
recovered. America is only 4% of the world’s population but has 25% of the
coronavirus deaths.
USA has the greatest number of total coronavirus cases in
the world followed by Brazil, Russia, India, UK and Spain the same exact order
as 10 days ago. Peru and Chile move up into the next spots verifying the
trouble occurring in South America. Italy, Iran, Germany, Mexico, Turkey and
Pakistan round out the top 14 worst nations ranked according to total virus
cases. Over the last few days, the US, India, Mexico, Pakistan and to a smaller
extent, China, have each seen a sharp uptick in coronavirus cases.
An update for The Keystone Speculator Coronavirus Infection
Rate Model (TKSCIRM) is provided since another 10-day period passes
and more data and information are available. This is Article 11 in the
coronavirus series that provides real-time information for historians, teachers,
students, journalists, economists, market participants, corporate executives,
financial managers, doctors, nurses, medical personnel, researchers, public
officials and politicians studying the COVID-19 pandemic. This eleventh article
is published on Tuesday, 6/23/20.
The countries and US states are listed below from best to
worst based on the spread and progression of the virus so the hot spots around
the world and in America are easily identified. The coronavirus articles are
written in real-time so it is interesting to see the progression of knowledge, thought,
hysteria and scientific information during each week of the 2020 worldwide
coronavirus pandemic. Sadly, as highlighted in the prior article, there is a disturbing realization that the health organizations are stumbling around in the dark
like three blind mice (WHO, CDC and NIH).
COVID-19 is confusing and confounding doctors and scientists
and the virus is not going away. The medical folks do not fully understand the
virus. President Trump has turned over much of the decision making to the
States so he can criticize their response in the future. Coronavirus cases are
spiking across the southern and western United States including Florida, Texas,
California and Arizona identified in the prior article.
Last Saturday, President Trump attended a campaign rally in
Tulsa, Oklahoma, which further incited racial injustice protests (the region
has a painful past in the way that blacks were mistreated, and outright
murdered, many decades ago). The president, and his so-called social internet
guru for the reelection campaign, got played by teens, and other young folks in
their 20’s and 30’s. Using message boards such as Reddit, the young folks
signed up in mass for the Tulsa rally to spoof the president. Trump worked himself
into a tizzy bragging that 1 million people signed up for the event. Trump was
convinced that the kick-start of the reelection campaign would be a huge
success. A second stage was added outside. In reality, only 6K people filled
the 19K arena. The crowd looked bigger than that such as 10K or 12K but it
really does not matter. The rally was a flop and Trump is not happy when he
looks like a chump. It appeared to be a deflating experience for the typically
upbeat showman.
The president continues to refuse to wear a mouth diaper and
folks at the Oklahoma rally follow his lead. Democrat Representative Jim
Clyburn criticizes the president proclaiming that Trump’s antics are “not
leadership, it is showmanship.” People were cheering, coughing, screaming and
yelling at the event; the hot arena air filled with aerosol droplets of unknown
human body fluids. On stage is King Donnie breathing it all in. Hopefully, the
president does not become ill with covid; nobody wants that to happen. Trump
visits Arizona today which is a hot-spot for the virus. Donnie keeps tempting
fate visiting the most infected states; it is William Henry Harrison-esque. President
Trump’s staff, that prepared the Tulsa arena including the podium and mics, become
sick with COVID-19. Up to eight people handling the Trump event are now
stricken with coronavirus including a couple secret service agents.
Americans are not used to being locked down so after a
couple months of that all caution is thrown to the wind. Folks are anxious to
get back out there and live life again but in their zeal for a return to
normalcy have brought on an accelerated wave of coronavirus cases. People are
far less diligent at following social distancing rules and with the economy
reopening, the virus is spreading quickly again in America. Most medical
professionals are calling it a continuation of the first wave of the virus
rather than the second wave that is expected in the Fall.
The economy cannot endure another shutdown. There remains 20
million people out of work. Of course most of the upper middle class and elite
privileged class have jobs where they use a desk computer and they can easily
work from home never missing a paycheck. The huddled masses, however, do not
have the same luxury. Further complicating the issue is the asinine stimulus of
providing money to laid off workers over and above unemployment compensation.
As would be expected, if people are making more money not working than working,
or at least the same comparable amount, they choose to sit home and take it
easy. Whatever happened to families saving for a rainy day? Many people live
paycheck to paycheck which leads to disastrous outcomes. The population has to
be taught to save money for unforeseen expenses but good luck with that. Where
were all the parents over the last three decades? It must be idiots teaching
idiots during this final stage in the long-term Kondratieff-style cycle.
Restaurants, that have to spend a few thousand dollars to
reopen, are closing in the states that see a rapid increase in coronavirus
cases. A restaurant cannot afford the starts and stops. Bankruptcies across all
business lines are increasing. Those are jobs that are gone forever. Apple
closes 11 stores that it had reopened creating stock market jitters. The AMC
movie chain reverses earlier guidelines and now makes masks mandatory in its
theaters. Mortgage delinquencies are the highest in nine years. 8% of the
mortgages in the US are late.
The immediate concern is the spike in coronavirus across the
US. Trump downplays the increase in cases blaming it on additional testing.
Most people are confounded by Trump’s continuing comment that the only reason
there is more cases is that there is more testing. Duh. Of course that is the
case. Trump proclaims that "if we did not do any testing we would not have any cases." That is hilarious. Donnie is the guy that hears a rattle from the vehicle he is driving and instead of being concerned over a mechanical problem and potential breakdown, he turns up the radio so the rattle disappears; problem solved. The president is receiving heat over a comment he made at the Tulsa rally
where 'he wants the medical people to slow the testing down since it will reduce
the number of cases'. The Whitehouse staff said he was kidding but now the
president says he is not. Simply add this matter to the heap of confusion and chaos with
the handling of the coronavirus situation. Trump’s job approval numbers
continue slipping. Seniors are worried about the virus and they are a huge
voting block especially in Florida. Trump must win Florida if he wants to be reelected.
State governors that scoffed at the virus and did not take
it seriously are now paying the price scrambling to enforce social distancing
rules that they laughed at a couple months ago. There was a lot of braggadocio
talk in Texas a couple months ago about how the virus saga was overblown but
now they are choking and coughing on covid. The coming days are critical to see
if this increase in cases in the US, call it a resurgence of the first wave, is
a short duration spurt or if it brings on a larger and more destructive virus
wave.
The first article in the coronavirus series is USCoronavirus (COVID-19) Infections Chart 3/15/20; The Keystone SpeculatorCoronavirus Infection Rate Model; US COVID-19 Infections Surpass 3,300; FederalReserve Blinks and Cuts Interest Rates to the Zero Bound Embracing ZIRP andAnnouncing $700 Billion QE Program; US Futures Tank Limit-Down; CoronavirusArchive Article 1 published 3/15/20.
The second article is The Keystone Speculator Coronavirus(COVID-19) Infection Rate Model Update 3/24/20; Italy Daily Cases Leveling Off;US Daily Cases Continue Rising; Congress Negotiating Fiscal Stimulus Bill;Coronavirus Archive Article 2 published 3/24/20.
The third article is The Keystone Speculator Coronavirus(COVID-19) Infection Rate Model Update 4/3/20; Italy Daily Active CasesPeaking; United States Faces Ugly Coronavirus Pain Ahead; US Monthly JobsReport; Coronavirus Archive Article 3 published 4/3/20.
As mentioned in the prior articles, the Worldometer web site
is very useful in tracking the coronavirus (COVID-19) around the world and its
link is provided. Charts in the coronavirus series of articles are provided
courtesy of Worldometer and annotated by Keystone.
The Keystone Speculator Coronavirus Infection Rate Model (TKSCIRM)
forecasts the peak date in active coronavirus cases for any country or region
which represents the maximum strain on medical personnel and facilities. TKSCIRM
monitors the Worldometer new case data for a country or region and identifies
the date of the peak in new cases (New Case Peak Date). Once this occurs, the
active case bell curve will peak in 1 to 4 weeks depending on how the virus
situation is handled. If the country, region or state is well-prepared, the
active cases will peak 11 days after the new cases peak. If the country is not well-prepared,
like the US and other nations currently dealing with the pandemic, the active
cases will peak 28 days after the peak in new cases. Same for any US state. Add
28 days to the New Cases Peak Date to arrive at the Projected Active Cases Peak
Date.
There is bad news in the US daily new cases and active cases
charts shown above. As of the last article 10 days ago, America appeared to be
forming the peak, the top of the bell curve, on the active cases chart but
instead, the big jump in new cases creates more active cases that are also
moving higher. The top of the bell curve on the active cases chart represents
the maximum strain on medical facilities and healthcare personnel. Obviously, a
chart moving higher is bad and states such as Florida, Texas and Arizona are
double-checking their bed, ventilator and ICU capabilities. Texas cities are
becoming slightly concerned about the number of beds available.
The US new cases chart above shows 36,015 new cases today
basically the same number as 5/1/20 at 36,090. The peak remains at 4/24/20
where 39,072 cases occurred in one day. For modeling purposes, the 4/24/20 new
case peak date targets the end of May for the peak in the active cases chart
but the chart keeps moving higher instead. Using today, 6/23/20, as the peak
new case date since the three days listed are in the same ballpark, would
target 7/21/20 for the peak in active cases.
The Keystone Model identifies the new case peak date and subsequent
higher numbers will create a new peak. Also, if the number of new cases is within
8% of the prior peak, that new date becomes the peak date where 28 days is
added to project when the peak in the active cases will occur. This behavior of
matching or higher high new case numbers signals that the virus is getting
worse in that region such as the US.
The peak new case date for the US is now 6/23/20, and adding
28 days, targets 7/21/20 for the peak in the active cases bell curve. Note the
7-day average shown on the new cases chart above. It is spiking higher which
shows an acceleration in the spreading of the virus comparable to the March
period (red lines).
The stutter-steps in the active cases chart shows that if the United States would have been more patient, and held off on wildly and quickly restarting the economy where many people did not wear masks or follow social distancing guidelines, even for just a couple more weeks, that could have led to flattening of the curve but now any hope of that is out in July sometime. The curve has now accelerated higher from the stutter-steps.
The stutter-steps in the active cases chart shows that if the United States would have been more patient, and held off on wildly and quickly restarting the economy where many people did not wear masks or follow social distancing guidelines, even for just a couple more weeks, that could have led to flattening of the curve but now any hope of that is out in July sometime. The curve has now accelerated higher from the stutter-steps.
The active cases bell curves have peaked, flattened and
rolled over, or are rolling over, for the following nations that are on their
way to better days ahead barring a second wave. The US keeps slipping in and
out of this list and is now out due to the new cases in America today, 6/23/20,
spiking to the prior highs.
China
(Active Case Peak Date 2/17/20) (13 days after New Case Peak Date) (data is
suspect)
South Korea
(Active Case Peak Date 3/11/20) (8 days)
Switzerland
(Active Case Peak Date 3/21/20) (11 days)
Austria
(Active Case Peak Date 4/3/20) (8 days)
Australia
(Active Case Peak Date 4/4/20) (13 days)
Iran (Active
Case Peak Date 4/5/20) (6 days) (data is suspect) (now in a second wave)
Germany
(Active Case Peak Date 4/6/20) (10 days)
Taiwan
(Active Case Peak Date 4/6/20) (17 days)
Hong Kong
(Active Case Peak Date 4/7/20) (9 days)
Hungary
(Active Case Peak Date 5/4/20) (24 days)
Israel
(Active Case Peak Date 4/16/20) (14 days)
Italy
(Active Case Peak Date 4/19/20) (30 days)
Ireland
(Active Case Peak Date 4/20/20) (10 days)
Turkey
(Active Case Peak Date 4/23/20) (13 days)
Spain
(Active Case Peak Date 4/23/20) (29 days)
France
(Active Case Peak Date 4/28/20) (26 days)
Japan
(Active Case Peak Date 4/28/20) (18 days)
Portugal
(Active Case Peak Date 5/11/20) (31 days)
Singapore
(Active Case Peak Date 5/12/20) (23 days)
Ecuador
(Active Case Peak Date 5/24/20) (30 days) (data is suspect)
Canada
(Active Case Peak Date 5/30/20) (28 days)
Russia
(Active Case Peak Date 6/15/20) (35 days) (data is suspect)
UK, Belgium,
Netherlands and Ecuador data are suspect so they are not analyzed.
Iran (second
wave occurring although data is suspect)
3/30/20 New
Case Peak Date
4/5/20
Active Case Peak Date (6 days) (peak of first wave)
6/4/20 New
Case Peak Date (more new cases than 3/30/20; Iran now in a second wave)
7/2/20
Projected Active Case Peak Date (active cases peak 6/21/20 but give it a few
more days)
Peru (data
is suspect)
5/31/20 New
Case Peak Date
6/28/20
Projected Active Case Peak Date (active cases peak 6/14/20 but give it a few
more days)
Sweden (data is suspect)
Sweden (data is suspect)
6/18/20 New Case Peak Date
7/8/20 Projected Active Case Peak Date (cannot
confirm that the peak is in)
Indonesia
6/20/20 New
Case Peak Date (cases keep increasing)
7/18/20
Projected Active Case Peak Date
Chile (data
is problematic since active cases show a peak on 6/2/20)
6/14/20 New
Case Peak Date
7/12/20
Projected Active Case Peak Date
Bangladesh
6/17/20 New
Case Peak Date
7/15/20
Projected Active Case Peak Date
Columbia
6/18/20 New
Case Peak Date
7/16/20
Projected Active Case Peak Date
Brazil (data
is suspect)
6/19/20 New
Case Peak Date
7/17/20
Projected Active Case Peak Date
Mexico
6/19/20 New
Case Peak Date
7/17/20
Projected Active Case Peak Date
Egypt
6/19/20 New
Case Peak Date
7/17/20
Projected Active Case Peak Date
South Africa
6/20/20 New
Case Peak Date
7/18/20
Projected Active Case Peak Date
Pakistan
6/20/20 New
Case Peak Date
7/18/20
Projected Active Case Peak Date
Kenya
6/21/20 New
Case Peak Date (cases keep increasing)
7/19/20
Projected Active Case Peak Date
Honduras
6/21/20 New
Case Peak Date (cases keep increasing)
7/19/20
Projected Active Case Peak Date
Philippines
(data is suspect)
6/23/20 New
Case Peak Date
7/21/20
Projected Active Case Peak Date
India
6/23/20 New
Case Peak Date (cases keep increasing at 12K per day)
7/21/20
Projected Active Case Peak Date
Guatemala
6/23/20 New
Case Peak Date
7/21/20
Projected Active Case Peak Date
Argentina
6/23/20 New
Case Peak Date
7/21/20
Projected Active Case Peak Date
Bolivia
6/23/20 New
Case Peak Date
7/21/20
Projected Active Case Peak Date
United
States
6/23/20 New
Case Peak Date (on same level as 4/24/20 and 5/1/20)
7/21/20
Projected Active Case Peak Date
It is
alarming that the US has fallen drastically on the list and is at the bottom of
the coronavirus trash heap alongside Philippines, India, Guatemala, Argentina
and Bolivia. Everyone sings, “La Cucaracha.” Iran may have made it though the
second wave which is remarkable and should be used as a case study if the data
is believable.
The trouble
areas remain South Asia, Africa and the southern United States, Mexico, Central
America and Latin (South) America. Mexico has had an extremely difficult time
handling the coronavirus over the last couple months and note how America’s
southern border states are seeing big jumps in cases. Perhaps the virus in Mexico
has mutated and it may be a more difficult strain to handle? In a sign of
things getting back to normal in Europe, Spain is reopening its borders except to
Portugal.
Poorer
nations are most impacted by COVID-19 currently which will further hurt the
global economy. Young people are becoming more infected. Three in five new
patients in the United States now average younger than 45 years old.
Seasonality does not appear to impact coronavirus. Cases in Australia are
rising which would be expected since the southern hemisphere has crossed into
wintertime. However, in many warm nations and in the southern US and Mexico,
the hotter weather does not slow the virus down. This behavior hints that the
second wave expected in the Fall may be at our doorstep faster than anyone
realizes.
Sweden is
pulling itself out of the virus quagmire. Sentiment is improving so the people
must sense that things are getting better. Sweden did not impose the draconian
lockdown measures like other countries and has taken heat over the matter.
However, much of the population self-isolated anyway and folks followed social
distancing guidelines so it is not a great study on imposing herd immunity. Conversely,
the US imposed lockdown restrictions on the population that then exited their
homes and apartments over the last month with reckless abandon, throwing
caution to the wind, so the number of virus cases are increasing in America.
Herd immunity may be the only way to eliminate the COVID-19 threat.
About 60%,
some doctors and scientists say 70% or 80%, of the population needs to be
infected or receive a vaccine to achieve herd immunity and eliminate the
wide-scale threat of COVID-19. America is perhaps 20% along so there is a long
way to go for herd immunity; now you can see why there is a push for a vaccine
which would greatly increase the chances of snuffing out coronavirus but that
opens up a whole new Pandora’s box on human rights and liberty. There will be
tracers in the vaccines which many will label as the Mark of the Beast. There
are numerous vaccine trials on humans currently underway around the world.
Americans are wavering from 25% to 75% (a wide range probably depending on the
last news they heard) in favor of receiving a vaccine should it be provided. It
will be interesting if the US and other nations spend billions of dollars on a
vaccine that no one wants to take.
The
dexamethasone drug is helping but only for critically-ill patients. The drug
slightly reduces the mortality rate. 40% of the virus cases are asymptomatic.
They can transfer the virus and do not know they have it. One in 10 coronavirus
cases are at nursing homes and account for 25% of the deaths.
China
experiences a mini-spike of cases in Beijing but you can never trust the
numbers from the communists. All schools are closed in Beijing and citizens
must be tested before allowed to leave the city. China cancels flights in and
out of Beijing. New cases in China ran to 150 during late last week but the
leadership says the virus is contained again. It is easier to contain a virus in
a communist state where you dictate to the people what they can and cannot do
and if they do not comply, they receive a bullet in their temple. US-China
relations remain strained and are deteriorating. President Trump says to not
rule out a “complete decoupling” from China.
The list of states
based on the highest number of COVID-19 cases to the lowest are as follows; New
York, California, New Jersey, Illinois, Texas, Massachusetts, Florida, Pennsylvania,
Michigan, Georgia, Maryland, Virginia, Arizona, North Carolina, Louisiana, Ohio
and Connecticut. Of the states with useable and available data, the first ones
listed below have weathered the covid first wave storm but the other states
remain in trouble. Projections on when the active cases (maximum strain on
medical facilities) will peak are provided by the Keystone Model.
California
leapfrogs Jersey. Texas leapfrogs Massachusetts. Florida leapfrogs
Pennsylvania. Georgia leapfrogs Maryland. Arizona leapfrogs five states. North
Carolina leapfrogs Louisiana and Connecticut. Thus, the states moving up the
list are getting worse namely California, Texas, Florida, Arizona and North
Carolina.
Louisiana
New Case
Peak Date 4/2/20
Active Case
Peak Date 4/23/20 (21 days between the peak in new cases and the peak in active
cases)
Michigan
New Case
Peak Date 4/3/20
Active Case
Peak Date 5/1/20 (28 days)
New Jersey
New Case
Peak Date 4/23/20
Active Case
Peak Date 5/20/20 (27 days)
Massachusetts
New Case
Peak Date 4/24/20 (a spike occurs on 6/1/20 but it may be due to data
collection)
Active Case
Peak Date 5/20/20 (26 days)
Pennsylvania
New Case
Peak Date 4/24/20
Active Case
Peak Date 5/21/20 (27 days)
Illinois
New Case
Peak Date 5/12/20
Active Case
Peak Date 5/30/20 (18 days)
Louisiana,
Michigan, New Jersey, Massachusetts, Pennsylvania and Illinois have weathered
the initial coronavirus wave. These states now have a bit of breathing room to
plan ahead for a potential second weave. The US states listed below show the active
cases bell curve charts rising, and not flattening, so the strain on the
healthcare systems continue. There are likely many flaws in the data
collection. Most of the states below will not peak out on the active cases
curve until well into July. The strain and stress on medical facilities will
continue for the states below.
New York
(data is suspect)
New Case Peak Date 4/15/20
Projected Active Case Peak Date 5/13/20 (as of 6/23/20, chart continues higher)
New Case Peak Date 4/15/20
Projected Active Case Peak Date 5/13/20 (as of 6/23/20, chart continues higher)
Ohio (data
is suspect)
New Case
Peak Date 4/20/20
Projected
Active Case Peak Date 5/18/20 (as of 6/23/20, chart continues higher)
Washington
(state) (data is suspect)
New Case
Peak Date 5/1/20
Projected Active
Case Peak Date 5/29/20 (as of 6/23/20, chart continues higher)
Maryland
(data is suspect)
New Case
Peak Date 5/19/20
Projected
Active Case Peak Date 6/16/20 (as of 6/23/20, chart continues higher)
Virginia
(data is suspect)
New Case
Peak Date 5/26/20
Projected
Active Case Peak Date 6/23/20 (as of 6/23/20, chart continues higher)
The
following states are seeing rapid increases in new cases. May the Lord Have
Mercy on Their Souls. It was fun and games for a couple-three weeks in the
states below as caution and social distancing was cast aside in favor of
restarting the economy and partying but now these regions are experiencing a
covid hangover.
New Mexico
New Case
Peak Date 6/5/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/3/20
Arkansas
New Case
Peak Date 6/18/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/16/20
South
Carolina
New Case
Peak Date 6/20/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/18/20
North
Carolina
New Case
Peak Date 6/20/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/18/20
Florida
(data is suspect) (republican convention is moved to Florida)
New Case
Peak Date 6/20/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/18/20
Oklahoma
New Case
Peak Date 6/21/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/19/20
Georgia
Georgia
New Case Peak Date 6/23/20 (cases rapidly
increasing)
Projected Active Case Peak Date 7/21/20
Texas
New Case
Peak Date 6/23/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/21/20
California
New Case
Peak Date 6/23/20 (cases increasing)
Projected
Active Case Peak Date 7/21/20
Arizona
New Case
Peak Date 6/23/20 (cases rapidly increasing)
Projected
Active Case Peak Date 7/21/20
For any
state that has not yet reached its peak in the active case curve, simply
identify what day the new cases peak and add 28 days to that date to project
when the top of the bell curve will occur on the active cases chart as per the
Keystone Model. If subsequent new case numbers exceed the new case peak date’s
number, or are within 8% of the new case peak date, that new date becomes the
new case peak date and 28 days is added to project the active cases peak load.
President
Trump held the campaign rally last Saturday in Oklahoma and today he is in
Arizona. The republican convention this summer is in Florida. Donnie is hitting
all the hot spots. In New York, Governor Cuomo ended the daily news
conferences. Cuomo has been receiving a lot of heat for sending sick folks into
nursing homes early on with the pandemic. He is blaming the Whitehouse and CDC
for poor guidance early in the process. Cuomo performs a “mission accomplished”
presser last week but the active cases chart continues rising albeit slightly.
Cuomo has nothing to celebrate or move on to; he needs to remain focused on the
coronavirus problem. When the active cases curve lingers on higher while new
cases drift lower for several weeks, that is indicative or more elderly patients
that are taking longer to recover (spending more time in the hospital or care
centers).
In Texas,
Houston is worried about running out of ICU (Intensive Care Unit; where you are placed on a ventilator) beds. The Houston ICU bed capacity is about 95% filled and increasing. As long as the active cases bell
curve chart keeps moving higher, and is not yet flattening for the top of the
bell, the medical folks will be under stress. All the troubled states above are
in the US south and west. The hot weather is not slowing down covid. The states
bordering Mexico are hit hard; one wonders if that strain of virus is more
difficult to beat down. Mexico’s problems spread to the southern US states.
Florida is a
battleground state for the presidential election only four months away. 75% of
Florida’s hospitals are filled with patients. The senior voting block is key
and many of the older folks are dropping like flies. Trump’s handling of the
virus may bite him in Florida which he has to win to achieve reelection. City
mayors across Florida and the United States, that laughed at the suggestion of
wearing masks, are now imposing mask-wearing on citizens.
The top of
the active cases bell curve may not develop until well into July so the strain
on medical personnel, especially in those bottom 10 states, New Mexico,
Arkansas, South Carolina, North Carolina, Florida, Oklahoma, Georgia, Texas,
California and Arizona, will continue. New Mexico, Arkansas, the Carolina’s and
Georgia have not been in the news as much as the others so the mainstream media
may be opining about the rising cases in these states in the days ahead. The
Keystone Model is great at identifying the next and continuing hot spots around
the world and within the US. Mississippi and Nevada are also showing significant cases but the data is inconclusive to include it above. In America, the rate of infection in young people
under 25 years old is increasing.
As the
coronavirus mess continues, the protests and riots addressing racial injustice
continue. Actually, there are many groups with different agendas. There are
anarchists and there are simply some opportunistic looters. Protesters are
tearing down statues of political figures claiming the people supported
slavery, however, the mob behavior has morphed into destroying any statue. The
natives are getting restless. Society is working itself into frenzy.
Americans
have lost confidence in the three main medical authorities (WHO, CDC and NIH)
and are frustrated at the confusing messaging and starts and stops with the
economy. Dr Fauci, at the NIH, testifies before Congress and says he is
“concerned over an increase in community spread.” Fauci leads the president’s
virus task force but admits he has not talked to Trump for a couple weeks.
Fauci proclaims, “The next few weeks are critical.” Dr Redfield, at the CDC,
brings a wet blanket to the party saying the coming weeks “will be difficult.”
Note Added
Wednesday Morning, 6/24/20, at 3:02 AM EST: The EU (European Union) is
considering banning American travel to the continent due to the sharp increase
in COVID-19 cases in the states. It would also be a reciprocal type measure
since the US banned flights from Europe. President Trump is panning new tariffs
against the EU. Only King Donnie would consider tariffs in the middle of a
global pandemic and flailing world economy; it rhymes with the protectionism during
the 1930’s Great Depression. A presidential poll released this morning from New
York Times/Siena College shows democrat challenger Joe Biden at 50% and
republican President Trump at 36%. Biden has a strong 14 percentage-point lead while
he is hiding in the basement. The American people may be tiring of the daily
Donnie showman and braggadocio schtick. The coronavirus mess is not helping the
president. Another poll shows two-thirds of the country believe that Trump is
dishonest. As stated many times, the republicans provide Donnie with his daily ego-stroking
adoration and tell him he is doing a good job because they want the judges.
Trump keeps stacking the court with conservative judges that will shape the US court
system for decades to come. Republican leaders laugh at Trumpster behind his
back and make fun of his buffoonery and bloviating style in the back rooms on
Capitol Hill but praise him in public because they simply want the judges. China
wants US meat and food producers to guarantee that shipments are virus-free.
Get real. The filthy communists release their bioweapon on the world then the
Beijing leadership demands that the food they receive is free of the virus they
created. If not, China wants to charge fees and damages. Plain and simple,
never trust a filthy communist, they will slit your throat in the middle of the
night. Trump, Cook (Apple) and Musk (Tesla) will all receive the shaft from the
commies as the weeks and months play out. S&P futures dip -30 points in the
early morning hours. Global investors and traders are concerned about the
spreading virus in America and concern that the global economy will not recover
as fast as hoped.
Note Added
Wednesday Morning, 6/24/20, at 11:30 AM EST: Just before lunch time, the US
stock market is cratering. The US-China strained trade relations, talks of new
tariffs against Europe and of course the ongoing, and worsening, global
COVID-19 pandemic, are creating a negative vibe on Wall Street. The S&P
500, the US stock market (SPX), is crashing 74 points, -2.4% to 3057. The Dow
is off 635 points, -2.5%, to 25520. The computer screens are blood red. Europe
is also crashing. Germany’s DAX plummets -3%. France’s CAC -2.7%. Italy’s MIB
is puking -3.3%. The mainstream and business media is commenting on the sharp
spike higher in the 7-day average of new cases in the United States as highlighted
in the chart above. New York, New Jersey and Connecticut impose quarantine restrictions against visitors from other states. The news further sinks the stock market. The SPX is down 98 points, -3.1%, to 3033.
Note Added Wednesday Afternoon, 6/24/20, at 1:01 PM EST: The stock market selloff continues although equities are off the lows. Bloomberg cites a large increase in coronavirus cases as spooking the markets. The 7-day averages of new cases in Arizona, South Carolina, Texas, Florida and Oklahoma print record increases. The SPX is down 68 points, -2.2%, to 3063. The University of Washington estimates that 180K US deaths will occur from COVID-19 by 10/1/20. Reference the prior Article 10, linked above, for the US death chart. Extrapolating the worst case the deaths are in that 180K to 190K area. However, the lower line on that chart is patterned after the other countries that already weathered the covid storm. The deaths rise more flatly as time goes on so the Keystone Model would put the deaths at a lower number say 160K three months from now. The Worldometer data shows about 124K US deaths currently while the Johns-Hopkins data is at 122K deaths currently. The news from Houston, Texas, becomes more dire. Houston is at their ICU bed capacity. Texas halts the reopening of its economy. Texas doctors band together and say there are plenty of beds available; they are obviously trying to calm the situation. Texas Governor Abbott proclaims, "There is a massive outbreak of COVID-19 across the state of Texas." President Trump appears detached or in denial saying the worst days of the virus are behind us and blames the testing for identifying more cases. Trump keeps dropping in the polls against democrat challenger Biden.
Note Added Saturday, 6/27/20: The news goes from bad to worse. Florida and Texas are back pedaling from opening the economy. Florida, Texas, California, Arizona, Georgia, Tennessee, Utah and Idaho are reporting record spikes in virus cases. The rural areas are getting hit now. Yesterday, US new cases hit 47,341 the highest number ever blowing away the chart above. Vice President Pence holds a press conference at the Department of Health and Human Services (HHS) the first briefing in two months. Prince Pence and King Trump keep doing victory laps claiming mission accomplished. Pence proclaims, "We are in a much stronger place." It sounds delusional. Pence will not tell everyone to use a face mask since Donnie refuses to don a mouth diaper. President Trump (not attending the news conference) says there are less deaths and deaths are "way, way down." Of course deaths are increasing but the president is referring to the daily rate of change. For example, the US total cumulative deaths due to COVID-19, as of yesterday are 127,640. The day before 126,977. The day before that 126,324. The day before that 125,505. The day before that 124,634. Thus, as of yesterday's presser, the deaths the three prior days are 871, 819 and 653. This is the number of Americans croaking each day due to the virus; from 600 to 900 souls. On the Republican Tribe side, Trump and Pence say the deaths are going down; they are referencing that daily rate of change so technically that is correct. On the Democrat Tribe side, they say deaths are increasing which is correct since cumulatively, deaths will always increase until the virus ends and the final number is tallied. Do you see how all the filthy politicians play their political half-truth games in the world of crony capitalism? You are best served by not joining either tribe. Now perform the subtraction for yesterday's deaths. Yes, the day to day rate is 663 deaths yesterday versus 653 deaths on Thursday. The death rate is now increasing as well. Pence is lucky he held the conference yesterday because today he is a liar saying the deaths are decreasing; the rate of US deaths are now on the upside again. Pence also declares that the curve has been flattened. This statement contains two errors. First, he is referencing the new cases bar chart which did flatten out but now it has spiked higher than ever; there is no flattening occurring. Second, and more important, he is referencing the "flattening of the curve" to the wrong chart. Keystone keeps mentioning this fact over and over but America in general is too stupid to comprehend easy charts, math and science. Fifth graders can be taught to understand this information but adults cannot since they are blinded by politics. For the umpteenth time, the flattening of the curve references the active cases bell curve. The active cases chart is important since it represents the strain and stress on healthcare professionals and equipment. This is the bell curve you want to see flatten and then roll over lower to form the right side of the bell pattern. Flattening the curve has nothing to do with the new cases bar chart except as the Keystone Model highlights above, the active cases bell curve should peak out and flatten about 28 days after the peak in new cases occurs. Since 6/26/20 is a new peak in new cases, add 28 days, and the maximum strain on US medical personnel will likely not occur until 7/24/20 (extending the chart above). God Bless all you folks. Trump and Pence are botching up the COVID-19 pandemic, it is a mess, but they are probably doing about as well as any republocrat or demopublican joker can do. Do not trust any of the media. Do not join either corrupt tribe. Learn, study and teach yourself. You don't want to be an American Idiot.
Note Added Wednesday Afternoon, 6/24/20, at 1:01 PM EST: The stock market selloff continues although equities are off the lows. Bloomberg cites a large increase in coronavirus cases as spooking the markets. The 7-day averages of new cases in Arizona, South Carolina, Texas, Florida and Oklahoma print record increases. The SPX is down 68 points, -2.2%, to 3063. The University of Washington estimates that 180K US deaths will occur from COVID-19 by 10/1/20. Reference the prior Article 10, linked above, for the US death chart. Extrapolating the worst case the deaths are in that 180K to 190K area. However, the lower line on that chart is patterned after the other countries that already weathered the covid storm. The deaths rise more flatly as time goes on so the Keystone Model would put the deaths at a lower number say 160K three months from now. The Worldometer data shows about 124K US deaths currently while the Johns-Hopkins data is at 122K deaths currently. The news from Houston, Texas, becomes more dire. Houston is at their ICU bed capacity. Texas halts the reopening of its economy. Texas doctors band together and say there are plenty of beds available; they are obviously trying to calm the situation. Texas Governor Abbott proclaims, "There is a massive outbreak of COVID-19 across the state of Texas." President Trump appears detached or in denial saying the worst days of the virus are behind us and blames the testing for identifying more cases. Trump keeps dropping in the polls against democrat challenger Biden.
Note Added Saturday, 6/27/20: The news goes from bad to worse. Florida and Texas are back pedaling from opening the economy. Florida, Texas, California, Arizona, Georgia, Tennessee, Utah and Idaho are reporting record spikes in virus cases. The rural areas are getting hit now. Yesterday, US new cases hit 47,341 the highest number ever blowing away the chart above. Vice President Pence holds a press conference at the Department of Health and Human Services (HHS) the first briefing in two months. Prince Pence and King Trump keep doing victory laps claiming mission accomplished. Pence proclaims, "We are in a much stronger place." It sounds delusional. Pence will not tell everyone to use a face mask since Donnie refuses to don a mouth diaper. President Trump (not attending the news conference) says there are less deaths and deaths are "way, way down." Of course deaths are increasing but the president is referring to the daily rate of change. For example, the US total cumulative deaths due to COVID-19, as of yesterday are 127,640. The day before 126,977. The day before that 126,324. The day before that 125,505. The day before that 124,634. Thus, as of yesterday's presser, the deaths the three prior days are 871, 819 and 653. This is the number of Americans croaking each day due to the virus; from 600 to 900 souls. On the Republican Tribe side, Trump and Pence say the deaths are going down; they are referencing that daily rate of change so technically that is correct. On the Democrat Tribe side, they say deaths are increasing which is correct since cumulatively, deaths will always increase until the virus ends and the final number is tallied. Do you see how all the filthy politicians play their political half-truth games in the world of crony capitalism? You are best served by not joining either tribe. Now perform the subtraction for yesterday's deaths. Yes, the day to day rate is 663 deaths yesterday versus 653 deaths on Thursday. The death rate is now increasing as well. Pence is lucky he held the conference yesterday because today he is a liar saying the deaths are decreasing; the rate of US deaths are now on the upside again. Pence also declares that the curve has been flattened. This statement contains two errors. First, he is referencing the new cases bar chart which did flatten out but now it has spiked higher than ever; there is no flattening occurring. Second, and more important, he is referencing the "flattening of the curve" to the wrong chart. Keystone keeps mentioning this fact over and over but America in general is too stupid to comprehend easy charts, math and science. Fifth graders can be taught to understand this information but adults cannot since they are blinded by politics. For the umpteenth time, the flattening of the curve references the active cases bell curve. The active cases chart is important since it represents the strain and stress on healthcare professionals and equipment. This is the bell curve you want to see flatten and then roll over lower to form the right side of the bell pattern. Flattening the curve has nothing to do with the new cases bar chart except as the Keystone Model highlights above, the active cases bell curve should peak out and flatten about 28 days after the peak in new cases occurs. Since 6/26/20 is a new peak in new cases, add 28 days, and the maximum strain on US medical personnel will likely not occur until 7/24/20 (extending the chart above). God Bless all you folks. Trump and Pence are botching up the COVID-19 pandemic, it is a mess, but they are probably doing about as well as any republocrat or demopublican joker can do. Do not trust any of the media. Do not join either corrupt tribe. Learn, study and teach yourself. You don't want to be an American Idiot.
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