STOCK MARKET BEARISH -- SHORT

Keybot the Quant flips to the short side this morning at SPX 2846 with a whipsaw move. The algo flipped long yesterday but then wanted to flip short from lunchtime into this morning. Stocks gapped-down at the opening bell so typically a recovery occurs. A gap-down timer was triggered so Keybot did not flip short immediately. Retail, banks, copper and the NYA Index have all lost key levels creating the crash in the stock market today.

The session was a bloodbath. Stocks trended slowly lower and then collapsed in the afternoon. When Ernest Hemingway was asked how he went bankrupt he quipped, "at first very slowly.....then all at once."

It was an odd day since banks held up for most of the morning. Ditto copper. Then they both gave up the ghost. The VIX spikes to 22 so the intraday and day to day moves in the stock market will be large and frequent going forward. There is likely choppy waters ahead.

The bears need weaker utilities and commodities to create further downside carnage. The SPX under 2749 will create a massive leg lower in stocks and potential crash event.

The bulls need to push one of these three parameters into the bull camp as fast as possible to stop the market bleeding; CPER above 17.34, NYA above 12806 and/or XLF above 27.97. CPER is at 17.32 only 2 cents on the bear side so watch copper overnight; it will provide an early indication of stock market direction tomorrow.

The bears are cruising with the algo number 44 points below the signal line. There was carnage today with the S&P 500 beaten 95 points; -3.3%. That will leave a mark.

On the last trade, that only lasted about 24 hours, the algo program loses -1.6% and the actual trading gives up -3%. The benchmark S&P 500 is up +6.4% this year with the actual trading up about +12%. Keybot exits DDM and enters SH. The algo drops down into the single ETF's for the next month. The whipsaw of the algo signals that market choppiness may lay ahead so Keybot uses single 1x ETF's to minimize risk. Markets remain erratic and unstable.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/10/18; 2:46 PM EST = +8; signal line is +47

10/10/18; 1:56 PM EST = +24; signal line is +49

10/10/18; 1:24 PM EST = +38; signal line is +51

10/10/18; 1:05 PM EST = +24; signal line is +53

10/10/18; 11:15 AM EST = +38; signal line is +54
10/10/18; 10:57 AM EST = +54; signal line is +56; go short 2846; (Benchmark SPX for 2018 = +6.4%)(Keybot algorithm program this trade = -1.6%; Keybot algo for 2018 = +2.2%)(Actual results this trade = -2.9%; Actual trading results for 2018 = +11.7%)

10/9/18; 12:36 PM EST = +54; signal line is +58 but algorithm remains long

10/9/18; 10:31 AM EST = +70; signal line is +59; go long 2892; (Benchmark SPX for 2018 = +8.2%)(Keybot algorithm program this trade = +0.6%; Keybot algo for 2018 = +3.8%)(Actual results this trade = +1.3%; Actual trading results for 2018 = +14.6%)