STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side a short time ago at SPX 1791. Utilities (UTIL) and commodities (GTX) create the market rally. The algo is now tracking financials. Watch XLF 21.44. XLF is now at 21.30. Above 21.44 and markets will run far higher. The bears have to hold the line and prevent XLF 21.44 while pushing utilities and commodities lower. As always, stay alert for a whipsaw today or tomorrow since utilities may collapse just as easily as they spiked.

For now, the bulls are driving the bus and have taken control of the markets with one day remaining in January. The caution flag remains out since the bulls will be in immediate trouble and can quickly lose control if GTX, now at 4790, drops under 4780, or if the utes collapse. The algorithm program gained +2% on the last trade and the actual trading triggered by the algo gained nearly +4% so that starts the year off nicely. Keybot cylced out of SDS and entered DDM. Markets remain very unstable and erratic. Stay very alert in these fast-moving and volatile markets.

1/31/14; 10:00 AM EST =

1/30/14; 11:23 AM EST = +16; signal line is +10; go long 1791; (Benchmark SPX for 2014 = -3.1%)(Keybot this trade = +2.0%; Keybot for 2014 = +1.3%)(Actual this trade = +3.7%; Actual for 2014 = +2.0%)

1/30/14; 9:36 AM EST = +16; signal line is +12 but algorithm remains short

1/29/14; 3:13 PM EST = -16; signal line is +13

1/29/14; 2:35 PM EST = +0; signal line is +16

1/29/14; 2:23 PM EST = -16; signal line is +17

1/29/14; 2:05 PM EST = -30; signal line is +20

1/29/14; 1:05 PM EST = -14; signal line is +25

1/29/14; 12:44 PM EST = +2; signal line is +25

1/28/14; 2:40 PM EST = -14; signal line is +26

1/28/14; 2:05 PM EST = -30; signal line is +28

1/28/14; 12:36 PM EST = -14; signal line is +31

1/28/14; 10:00 AM EST = -30; signal line is +33

1/27/14; 9:36 AM EST = -30; signal line is +35

1/26/14; 7:00 PM EST = -14; signal line is +38

1/24/14; 1:59 PM EST = -14; signal line is +39

1/24/14; 9:36 AM EST = +2; signal line is +41

1/23/14; 10:45 AM EST = +18; signal line is +42

1/23/14; 9:38 AM EST = +34; signal line is +42

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

1/19/14; 7:00 PM EST = +32; signal line is +42

1/17/14; 10:00 AM EST = +32; signal line is +42

1/17/14; 9:00 AM EST = +33; signal line is +43

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)