STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the long side at SPX 2011 after lunch time. Utilities led the way higher this morning with UTIL into the bull camp and running higher. Volatility drops with VIX down to 16 creating rocket fuel for stocks. Financials join the bull party with XLF above 23.35 sealing the upside deal for the bulls. As always, especially in these choppy sideways markets, stay alert for a whipsaw back to the short side.

Friday will be a fight between retail stocks and financials. Bears need XLF under 23.35 which will stall the stock market rally. Bulls need to push RTH above 75.70 and the upside party will kick into high gear.

For the SPX starting at 2024, the bulls need any smidge of green in the overnight S&P futures and the SPX will accelerate higher after the opening bell.  The bears need to push the SPX under 1996 to regain their mojo, a formidable task, so instead bears will focus on keeping the futures negative and pushing financial and retail stocks lower to stop the stock market rally. A move through 1997-2024 is sideways action to end the week.

The last trade results in a flat trade both the algorithm program and the actual trading logging marginal losses. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's. The bulls are driving the bus but markets remain erratic and unstable. Keybot prints a pre-scheduled number tomorrow morning.

10/18/15; 7:00 PM EST =

10/16/15; 10:00 AM EST =

10/15/15; 2:41 PM EST = +35; signal line is +15

10/15/15; 1:18 PM EST = +19; signal line is +13; go long 2011; (Benchmark SPX for 2015 = -2.3%)(Keybot algo this trade = -0.3%; Keybot algo for 2015 = +9.4%)(Actual results this trade = -0.4%; Actual results for 2015 = +15.0%)

10/15/15; 10:55 AM EST = +19; signal line is +12 but algorithm remains short

10/15/15; 9:34 AM EST = +3; signal line is +10

10/15/15; 9:32 AM EST = -11; signal line is +10

10/14/15; 3:43 PM EST = +3; signal line is +9

10/14/15; 12:54 PM EST = -11; signal line is +9; go short 2005; (Benchmark SPX for 2015 = -2.6%)(Keybot algo this trade = +3.9%; Keybot algo for 2015 = +9.7%)(Actual results this trade = +8.1%; Actual results for 2015 = +15.4%)