STOCK MARKET BEARISH -- SHORT

Keybot the Quant flips to the short side shortly after the opening bell at SPX 2455. The VIX has popped above 15 now at 13.45 creating market negativity. Ditto retail stocks with RTH failing below the critical 80.82 level. Ditto chips that collapse under the important SOX 1076 bull-bear line in the sand. The semiconductor weakness creates the flush lower in stocks shortly after 10 AM.

On the last trade that went about one month, the algo program gains +1.2%. The actual trading gains +2.5% and is now up +3.2% on the year. It is nice to see a positive number since many Wall Street algorithms are struggling greatly this year due to the lack of volatility and low volume. Keybot is hanging in there. The S&P 500 benchmark is up nearly +10% this year thus far. Keybot exits SSO and enters SDS.

The bears are in control with the algo number 33 points under the signal line, however, watch out for a whipsaw move in these erratic and goofy markets. Focus on chips. The market bears will run out of gas and be unable to push the stock market lower if the SOX rises above 1076. If SOX remains under 1076 (now at 1073), the bears will continue growling and creating more negativity in the stock market. The bears finally have a turn at bat.

8/13/17; 7:00 PM EST =

8/10/17; 10:07 AM EST = +53; signal line is +86

8/10/17; 10:05 AM EST = +69; signal line is +88; go short 2455; (Benchmark SPX for 2017 = +9.7%)(Keybot algo this trade = +1.2%; Keybot algo for 2017 = +3.4%)(Actual results this trade = +2.5%; Actual results for 2017 = +3.2%)

8/10/17; 9:36 AM EST = +69; signal line is +88 but algorithm remains long

8/9/17; 3:59 PM EST = +99; signal line is +89

8/9/17; 9:36 AM EST = +85; signal line is +88 but algorithm remains long

8/8/17; 3:45 PM EST = +99; signal line is +88

8/8/17; 3:38 PM EST = +85; signal line is +87 but algorithm remains long

8/6/17; 7:00 PM EST = +99; signal line is +87

8/4/17; 10:27 AM EST = +99; signal line is +85

8/4/17; 10:07 AM EST = +83; signal line is +84 but algorithm remains long

8/4/17; 9:36 AM EST = +99; signal line is +84

8/4/17; 9:00 AM EST = +83; signal line is +82

8/3/17; 3:52 PM EST = +83; signal line is +82

8/3/17; 3:42 PM EST = +99; signal line is +81

8/3/17; 1:57 PM EST = +83; signal line is +79

8/3/17; 1:12 PM EST = +67; signal line is +78 but algorithm remains long

8/3/17; 1:07 PM EST = +83; signal line is +77

8/3/17; 12:52 PM EST = +99; signal line is +76

8/3/17; 11:52 AM EST = +83; signal line is +73

7/31/17; 7:00 PM EST EOM = +99; signal line is +71

7/30/17; 7:00 PM EST = +99; signal line is +70

7/28/17; 10:00 AM EST = +99; signal line is +68

7/25/17; 11:48 AM EST = +100; signal line is +66

7/25/17; 10:00 AM EST = +86; signal line is +64

7/25/17; 9:41 AM EST = +86; signal line is +62

7/23/17; 7:00 PM EST = +70; signal line is +59

7/20/17; 1:25 PM EST = +70; signal line is +58

7/19/17; 2:47 PM EST = +84; signal line is +57

7/19/17; 1:57 AM EST = +100; signal line is +55

7/19/17; 1:47 PM EST = +86; signal line is +53

7/19/17; 1:37 PM EST = +70; signal line is +52

7/19/17; 1:13 PM EST = +86; signal line is +52

7/19/17; 12:31 PM EST = +70; signal line is +50

7/19/17; 11:52 AM EST = +86; signal line is +49

7/19/17; 9:00 AM EST = +70; signal line is +49

7/16/17; 7:00 PM EST = +70; signal line is +48

7/14/17; 10:00 AM EST = +70; signal line is +48

7/11/17; 11:40 AM EST = +70; signal line is +48

7/11/17; 11:24 AM EST = +56; signal line is +48

7/10/17; 9:36 AM EST = +70; signal line is +48; go long 2425; (Benchmark SPX for 2017 = +8.3%)(Keybot algo this trade = +0.7%; Keybot algo for 2017 = +2.2%)(Actual results this trade = +1.3%; Actual results for 2017 = +0.7%)

Note Added 11;11 AM EST: SOX is printing at 1074.09 about 2 points below the 1076 bull-bear line in the sand called out by Keybot. Watch this closely. Bears win under SOX 1076. Bulls win above SOX 1076.