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.
Keystone's proprietary trading robot, Keybot the Quant, flips to the bull side on Friday at SPX 5109. Utilities, chips, retail stocks (AMZN) and volatility are controlling stock market direction currently. Nothing Else Matters.
Bears win if SOX drops below 4655 and UTIL drops below 872. Bulls win if RTH rises above 202 (watch Scamazon) and if VIX falls below 14. Choose your poison. Everybody has a Poison Heart.
Keybot the Quant whipsaws back to the short side at SPX 5254 this Monday, Monday, morning. Volatility and utilities sh*t the bed reversing the joy they created on Thursday before the weekend parties. However, the robot is already champing at the bit to whipsaw back to the long side.
Bulls would win and likely flip the algo back to the long side at SPX 5264. Bulls need UTIL above 879 and VIX below 13.21 to signal the all-clear for lots of upside in stocks, otherwise they got buptkis.
Bears need weaker utilities and UTIL to drop below 873 heading lower which will confirm the downside for stocks ahead. Of course, bears must keep VIX above 13.21 or they will fold like a cheap suit and the bulls will take over control.