STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side on Monday morning at SPX 2771. The bulls pumped the banks on Friday and the retail stocks on Monday. The NYA Index moves above the critical 12472 level so the bulls dance with glee while singing, "Happy Days Are Here Again."

Look at that! An epic +100 print! The quant is an oscillator at its heart and the maximum readings are +100 (maximum bullish) and -100 (maximum bearish). The algorithm cannot become anymore bullish. The euphoric joy in markets is at a peak. It is unexpected to see the +100 occur. The bulls are buying stocks at the ask with reckless abandon. Global investors are wearing lampshades on their head, drunk off Fed wine, ECB champagne, BOJ sake and PBOC rice wine, buying equities with both fists. Traders buy since the central bankers vow to print money forever like the last decade. What can possible go wrong? The +100 print is rare; once markets move lower it may not occur again for several years.

Since retail stocks were the last parameter to flip long, watch RTH 100.24. Also, keep watching NYA 12472 and SPX 2743. Caution is warranted in these erratic and unstable markets and as always, stay alert for a whipsaw move.

The Keybot program was flat on the last trade and the actual trading gains about a half-percent. The benchmark SPX is up +10.5% this year and the actual trading triggered by the Keybot algo is up +9.8% in 2019. Keybot exits SDS and enters SSO.

3/17/19; 7:00 PM EST =

3/15/19; 10:00 AM EST =

3/11/19; 11:15 AM EST = +100; signal line is +64

3/11/19; 11:04 AM EST = +84; signal line is +63; go long 2771; (Benchmark SPX for 2019 = +10.5%)(Keybot algorithm program this trade = +0.2%; Keybot algo for 2019 = +5.2%)(Actual results this trade = +0.4%; Actual trading results for 2019 = +9.8%)

3/11/19; 10:00 AM EST = +84; signal line is +64 but algorithm remains short

3/10/19; 7:00 PM EST = +70; signal line is +63 but algorithm remains short

3/8/19; 3:59 PM EST = +70; signal line is +64 but algorithm remains short

3/8/19; 3:58 PM EST = +56; signal line is +65

3/8/19; 3:04 PM EST = +40; signal line is +66

3/8/19; 2:56 PM EST = +56; signal line is +67

3/8/19; 2:34 PM EST = +40; signal line is +68

3/8/19; 9:36 AM EST = +26; signal line is +70

3/8/19; 9:00 AM EST = +70; signal line is +71

3/7/19; 3:39 PM EST = +58; signal line is +71

3/7/19; 3:23 PM EST = +42; signal line is +72

3/7/19; 3:03 PM EST = +28; signal line is +74

3/7/19; 2:37 PM EST = +42; signal line is +76

3/7/19; 1:12 PM EST = +58; signal line is +77

3/7/19; 1:00 PM EST = +72; signal line is +78

3/7/19; 10:33 AM EST = +58; signal line is +78

3/7/19; 9:55 AM EST = +42; signal line is +79

3/7/19; 9:45 AM EST = +58; signal line is +81
3/7/19; 9:41 AM EST = +74; signal line is +81

3/6/19; 10:42 AM EST = +88; signal line is +81 but algorithm remains short
3/6/19; 10:35 AM EST = +74; signal line is +79; go short 2776; (Benchmark SPX for 2019 = +10.7%)(Keybot algorithm program this trade = +4.8%; Keybot algo for 2019 = +5.0%)(Actual results this trade = +10.0%; Actual trading results for 2019 = +9.4%)