STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the long side fueled by stronger financials. The whipsaw is not too surprising considering the wild market action yesterday. It is very rare for multiple sectors to collapse like financials, semiconductors and volatility yesterday and then to reverse in such quick order. The price action is very atypical. Keybot is back on the long side and the bulls should be okay as long as XLF stays above 21.80, SOX above 567.10 and JJC above 37.50. Copper is weak today so bears are trying to push JJC lower to stop the market upside.

Keybot takes less than a one percent loss on the last trade both with the algorithm program and the actual trading. The algo cycles out of DOG and into SPY remaining in the single ETF's due to the whipsaw nature of markets currently. Bulls and bears are fighting it out in a saw-tooth sideways pattern. The whipsaw action is chewing up Keybot's earlier gains this year.

Bears will likely need both XLF under 21.80 and JJC under 37.50 to flip the algo back to the short side. Watch JJC 37.50 to see if the bears can create a ceiling on the market upside, or not. As always, stay alert for a whipsaw especially in these current treacherous markets. The caution flag is out and if either XLF or JJC or SOX turns bearish the imminent turn notation would be in play. XLF is 21.86 six pennies on the bull side creating market lift. JJC is 31.56 hanging on to the bull flag by six pennies as well. Markets are unstable and erratic. 

5/4/14; 7:00 PM EST =

5/2/14; 9:00 AM EST =

4/30/14; 7:00 PM EST EOM =

4/29/14; 10:00 AM EST = +65; signal line is +39

4/29/14; 9:31 AM EST = +65; signal line is +36; go long 1874; (Benchmark SPX for 2014 = +1.4%)(Keybot this trade = -0.8%; Keybot for 2014 = +2.6%)(Actual this trade = -0.6%; Actual for 2014 = +0.4%)

4/28/14; 3:15 PM EST = +49; signal line is +35 but algorithm remains short

4/28/14; 2:27 PM EST = +33; signal line is +34

4/28/14; 1:05 PM EST = +19; signal line is +33; go short 1859; (Benchmark SPX for 2014 = +0.6%)(Keybot this trade = +0.0%; Keybot for 2014 = +3.4%)(Actual this trade = +0.1%; Actual for 2014 = +1.0%)