STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side. The bulls have underlying strength with the utes remaining elevated, SPX:VIX leaping back above 35, now at 37.56, and the VIX dropping under 32. In addition, retail moved into the bull camp again.  RTH is at 109.24, handily above the 108.50 level the algo identifies as a line between market bulls and market bears.

Thus, the market bulls have things going their way today, supported by utes, retail and lower volatility. But, caution is warranted. Keybot shot upwards without even having the chance to put out the caution flag, the quant went from short to long in quick order as the indicators above favored the bulls from the start today.

The last trade gained about 4%, a nice return considering the prior whipsaw indecision that the indexes experienced during early November.  As always, stay on guard for a whipsaw, either today or tomorrow.  Use VIX 32, SPX:VIX 35 and RTH 108.50 as your guide for market strength and direction.

12/4/11; 7:00 PM EST =

12/2/11; 9:00 AM EST =

11/30/11; 7:00 PM EST EOM =

11/29/11; 10:00 AM EST =

11/28/11; 9:52 AM EST = -26; signal line is -38; go long 1194; (Benchmark SPX for 2011=-5.1%)(Keybot this trade=+4.3%; Keybot for 2011=+28.3%)(Actual this trade via RWM=+4.1%; Actual for 2011=+32.3%)

11/28/11; 9:39 AM EST = -26; signal line is -38 but algorithm says stay short

11/28/11; 9:30 AM EST = -40; signal line is -38

11/27/11; 7:00 PM EST = -56; signal line is -37

11/25/11; 9:30 AM EST = -56; signal line is -35

11/23/11; 3:59 PM EST = -72; signal line is -33

11/23/11; 3:06 PM EST = -56; signal line is -30

11/23/11; 2:10 PM EST = -72; signal line is -28

11/23/11; 11:52 AM EST = -56; signal line is -27

11/23/11; 11:09 AM EST = -72; signal line is -25

11/23/11; 10:00 AM EST = -56; signal line is -23

11/23/11; 9:30 AM EST = -56; signal line is -23

11/22/11; 12:09 PM EST = -42; signal line is -21

11/22/11; 10:12 AM EST = -56; signal line is -20

11/22/11; 9:54 AM EST = -42; signal line is -19

11/21/11; 9:30 AM EST = -56; signal line is -18

11/20/11; 7:00 PM EST = -40; signal line is -16

11/17/11; 12:12 PM EST = -40; signal line is -14

11/17/11; 9:00 AM EST = -24; signal line is -13

11/16/11; 3:11 PM EST = -24; signal line is -12

11/16/11; 1:26 PM EST = -10; signal line is -12 but algorithm says stay short

11/16/11; 9:30 AM EST = -24; signal line is -12

11/15/11; 3:58 PM EST = -10; signal line is -12 but algorithm says stay short

11/15/11; 1:36 PM EST = +6; signal line is -10 but algorithm says stay short

11/15/11; 12:35 PM EST = -10; signal line is -10 but algorithm says stay short

11/15/11; 11:27 AM EST = -24; signal line is -9; go short 1247; (Benchmark SPX for 2011=-0.9%)(Keybot this trade=-0.3%; Keybot for 2011=+24.0%)(Actual this trade via SPY=-0.7%; Actual for 2011=+28.2%)