STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side yesterday morning at SPX 2931. The stock market is a coin-flip with the semiconductors not yet willing to choose a direction. SOX is at the 1370 level that Keybot has been calling out for several days. The banks are the bear's best friend.

The drama is with the chips. The SOX bull-bear line in the sand is 1369.65 (price is now at 1370.44). The stock market will weaken if SOX loses the 1370 level. Stocks will strengthen if SOX moves higher. Bears, in addition to SOX sub 1370, need JJCTF (copper) to fall below 30.40 (now at 30.61). Bulls need XLF above 28.00 which will create upside strength for stocks.

Thus, bulls need higher semiconductors and banks. Bears need lower semi's, lower copper and higher volatility.

Stay alert for a whipsaw back to the short side especially in these erratic unstable markets. Chips are running the show and dictating the direction of the broad stock market.

On the last trade, the algo program loses -0.8% and the actual trading dumps -1.5%. The benchmark SPX is up +9.6% this year. The Keybot the Quant computer program is up +4% and actual trading is up +13% on the year. Keybot exits the losing SDS trade and enters DDM. Watch SOX 1370.

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

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

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%)

9/30/18; 7:00 PM EST EOM EOQ3 = +68; signal line is +73

9/28/18; 10:00 AM EST = +68; signal line is +73

9/28/18; 9:36 AM EST = +68; signal line is +73

9/28/18; 8:40 AM EST = +52; signal line is +73

9/28/18; 6:50 AM EST = +38; signal line is +74

9/27/18; 3:00 PM EST = +52; signal line is +75

9/27/18; 1:12 PM EST = +68; signal line is +76

9/27/18; 12:42 PM EST = +84; signal line is +77 but algorithm remains short

9/27/18; 12:03 PM EST = +68; signal line is +77

9/26/18; 3:47 PM EST = +52; signal line is +77; go short 2908; (Benchmark SPX for 2018 = +8.8%)(Keybot algorithm program this trade = +0.0%; Keybot algo for 2018 = +4.7%)(Actual results this trade = -0.1%; Actual trading results for 2018 = +14.6%)