STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side today at SPX 2910. The algo is very active, the most in a long time, printing 13 numbers today including the turn to the bear side.  Comically, at the opening bell, the banks jumped into the bull camp but simultaneously, the chips jumped into the bear camp. The stock market remains a coin-flip and it is even more of a crap-shoot with the jobs report on tap Friday morning.

The bears need XLF under 27.97, JJCTF under 30.38 and/or UTIL under 711, to create market mayhem. Each parameter that may turn bearish would create another leg lower in the stock market.

The bulls need RTH above 108.59, SOX above 1370 and/or VIX below 12.91. Each parameter that would turn bullish would create a strong relief rally for the stock market. If any one of the three parameters turn bullish, and the SPX moves above 2920, Keybot may whipsaw back to the long side. Markets remain erratic and unstable.

Thus, bears need lower banks, copper and utes. Bulls need higher retail stocks, chips and lower volatility.

On the last trade, that was only three days, the Keybot program loses -0.7%. The actual trading ekes out a +0.2% gain only because the robot was in the DDM ETF (the Dow was strong despite broad market weakness). Keybot exits DDM and enters DXD. For the year thus far, the benchmark S&P 500 is up about +9%, the Keybot the Quant algo program is up +3% and the Keybot the Quant actual trading is up +13%.

Retail, banks and copper tell the story for Friday. Watch the RTH 108.59, XLF 27.97 and JJCTF 30.38 bull-bear lines in the sand. They are the rudders that steer the stock market directional ship. Keybot prints a pre-scheduled number in the morning.

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

10/5/18; 9:00 AM EST =

10/4/18; 2:34 PM EST = +54; signal line is +65

10/4/18; 2:21 PM EST = +38; signal line is +65

10/4/18; 1:47 PM EST = +54; signal line is +66

10/4/18; 1:36 PM EST = +38; signal line is +68

10/4/18; 12:44 PM EST = +54; signal line is +69

10/4/18; 12:37 PM EST = +70; signal line is +70 but algorithm remains short
10/4/18; 12:06 PM EST = +54; signal line is +71
10/4/18; 11:50 AM EST = +70; signal line is +72

10/4/18; 11:37 AM EST = +54; signal line is +73

10/4/18; 10:11 AM EST = +70; signal line is +75; go short 2910; (Benchmark SPX for 2018 = +8.8%)(Keybot algorithm program this trade = -0.7%; Keybot algo for 2018 = +3.2%)(Actual results this trade = +0.2%; Actual trading results for 2018 = +13.3%)

10/4/18; 9:36 AM EST = +84; signal line is +74

10/4/18; 9:10 AM EST = +84; signal line is +74

10/4/18; 9:00 AM EST = +70; signal line is +74 but algorithm remains long
10/3/18; 2:42 PM EST = +84; signal line is +74

10/3/18; 12:14 PM EST = +100; signal line is +75

10/3/18; 11:54 AM EST = +84; signal line is +74

10/3/18; 9:54 AM EST = +68; signal line is +74 but algorithm remains long

10/1/18; 9:41 AM EST = +84; signal line is +74; go long 2931; (Benchmark SPX for 2018 = +9.6%)(Keybot algorithm program this trade = -0.8%; Keybot algo for 2018 = +3.9%)(Actual results this trade = -1.5%; Actual trading results for 2018 = +13.1%)