STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side after the opening bell at SPX 2038. Current SPX print is 2043. Volatility leaps higher above 16 now at 16.04. VIX 14.43 remains important but VIX has a good chance of remaining above today. The algo is now tracking the NYA and copper. The NYA 40-week MA is a signal you can always watch that tells you if stocks are in a cyclical bull pattern or cyclical bear. The NYA is at 10768 and the 40-week MA is 10750. Use NYA 10749 as a major cyclical market signal. If NYA drops under 10749, equities are in a cyclical bear pattern for weeks, months and perhaps a year or two ahead. If the NYA stays above 10749, the market bulls will recover and party time will begin again.

Watch copper; JJC 36.10. Current print is 35.37 causing market bearishness. Thus, the bears need to keep VIX above 14.43 and JJC below 36.10 while pushing NYA under 10749. The bulls need to keep NYA above 10749 and push either VIX below 14.43 or JJC above 36.10. If status quo continues (no change), markets stagger sideways with an upward bias.

Stay alert for a whipsaw either today or tomorrow especially if bulls push VIX under 14.43. Keybot exited the DIA long trade and entered SDS. The algo is using double leveraged ETF's again. The SPX benchmark is up +10% on the year. The Keybot the Quant algorithm program gains +7.3% on the last trade and is up +16% this year. The actual trading, which allots for commissions, other fees and any mechanical inefficiencies, gains +8.1% on the last trade and is up +18% this year handily beating the majority of hedge funds.

Watch NYA 10749 like a hawk; also VIX 14.43. The bears are driving the bus after riding in the luggage compartment the last two months.

12/14/14; 7:00 PM EST =

12/12/14; 10:00 AM EST =

12/9/14; 9:36 AM EST = +44; signal line is +56; go short 2038; (Benchmark SPX for 2014 = +10.3%)(Keybot algo this trade = +7.3%; Keybot algo for 2014 = +16.2%)(Actual results this trade = +8.1%; Actual results for 2014 = +17.8%)

12/8/14; 2:31 PM EST = +58; signal line is +56

12/8/14; 2:07 PM EST = +44; signal line is +56 but algorithm remains long

12/7/14; 7:00 PM EST = +58; signal line is +56

12/5/14; 9:00 AM EST = +58; signal line is +56

12/1/14; 1:03 PM EST = +58; signal line is +56

12/1/14; 11:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 11:27 AM EST = +58; signal line is +56

12/1/14; 10:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 10:23 AM EST = +58; signal line is +55

12/1/14; 9:57 AM EST = +44; signal line is +54 but algorithm remains long

11/30/14; 7:00 PM EST EOM = +58; signal line is +53

11/26/14; 10:00 AM EST = +58; signal line is +52

11/25/14; 10:00 AM EST = +57; signal line is +51

11/23/14; 7:00 PM EST = +61; signal line is +50

11/21/14; 11:01 AM EST = +61; signal line is +50

11/21/14; 10:24 AM EST = +77; signal line is +50

11/20/14; 9:36 AM EST = +61; signal line is +49

11/20/14; 9:36 AM EST = +47; signal line is +49 but algorithm remains long

11/19/14; 1:04 PM EST = +61; signal line is +49

11/19/14; 10:10 AM EST = +47; signal line is +49 but algorithm remains long

11/19/14; 9:00 AM EST = +61; signal line is +48

11/17/14; 12:13 PM EST = +61; signal line is +47

11/17/14; 11:34 AM EST = +47; signal line is +45

11/17/14; 10:05 AM EST = +61; signal line is +45

11/17/14; 9:36 AM EST = +47; signal line is +43

11/16/14; 7:00 PM EST = +61; signal line is +42

11/14/14; 10:00 AM EST = +61; signal line is +40

11/13/14; 2:36 PM EST = +60; signal line is +38

11/13/14; 2:21 PM EST = +46; signal line is +36

11/9/14; 7:00 PM EST = +60; signal line is +35

11/7/14; 9:00 AM EST = +60; signal line is +32

11/6/14; 3:31 PM EST = +60; signal line is +31

11/2/14; 7:00 PM EST EOM = +46; signal line is +28

10/31/14; 10:00 AM EST = +46; signal line is +26

10/30/14; 1:11 PM EST = +44; signal line is +22

10/30/14; 11:03 AM EST = +28; signal line is +20

10/30/14; 10:47 AM EST = +14; signal line is +18 but algorithm remains long

10/30/14; 10:23 AM EST = +30; signal line is +16

10/30/14; 10:13 AM EST = +14; signal line is +14 but algorithm remains long

10/30/14; 9:36 AM EST = +30; signal line is +12

10/29/14; 3:59 PM EST = +46; signal line is +10

10/29/14; 3:46 PM EST = +60; signal line is +7

10/29/14; 2:05 PM EST = +46; signal line is +3

10/29/14; 1:58 PM EST = +60; signal line is -0

10/29/14; 1:45 PM EST = +46; signal line is -3

10/28/14; 3:06 PM EST = +60; signal line is -6

10/28/14; 10:00 AM EST = +46; signal line is -8

10/28/14; 9:36 AM EST = +41; signal line is -11

10/27/14; 2:13 PM EST = +25; signal line is -14

10/27/14; 1:46 PM EST = +9; signal line is -15

10/27/14; 12:41 PM EST = +25; signal line is -16

10/27/14; 11:42 AM EST = +9; signal line is -18

10/27/14; 11:25 AM EST = +25; signal line is -18

10/26/14; 7:00 PM EST = +9; signal line is -20

10/24/14; 9:36 AM EST = +9; signal line is -21

10/23/14; 3:59 PM EST = -7; signal line is -22

10/23/14; 10:20 AM EST = +9; signal line is -22

10/22/14; 12:21 PM EST = -7; signal line is -22

10/22/14; 11:27 AM EST = +9; signal line is -22

10/21/14; 9:36 AM EST = -7; signal line is -23

10/20/14; 2:12 PM EST = -23; signal line is -24; go long 1900; (Benchmark SPX for 2014 = +2.8%)(Keybot algo this trade = +2.2%; Keybot algo for 2014 = +8.9%)(Actual results this trade = +2.3%; Actual result for 2014 = +9.7%)