STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the bull side today at SPX 2924 before munch time. The bulls win the day with bullish semiconductors and during the last half-hour of trading the VIX falls through the 200-day MA at 17.18 pumping stocks higher.

The chips matter. Bears must push the SOX below 1478.25 (now at 1491.26) to regain control of the stock market direction. Bulls remain in the driver's seat as long as the SOX remains bullish above 1478.25.

The bulls will verify further upside strength in stocks if either RTH moves above 109.44, XLF above 27.65 and/or VIX below 14.55. It will be a sign of market weakness if none of the three can flip bullish in the Friday trade.

The model may whipsaw back to the short side in these erratic and unstable markets so the caution flag and imminent turn notations are in the title line. Friday may be a wild and crazy day. The bulls are in control but that will immediately disappear if the bears push SOX below 1478.25. Listen for any news on the chips overnight which will push SOX one way or the other.

The algo number is only 2 points above the signal line favoring the bulls but these readings indicate that the stock market is a coin flip.

On the last trade, which lasted two weeks, the Keybot program gains +1.8% and the actual trading gains +3.4%. Keybot exits SDS and enters SSO remaining in the 2x ETF's. Interestingly, the SPX benchmark index and the Keybot the Quant algorithm program are both up exactly +16.6% after 7 months of trading in 2019. The actual trading generated by Keybot is up +31% on the year thus far outperforming the vast majority of Wall Street.

Watch VIX 17.18. VIX begins trading at 3 AM EST so it will give you a heads-up for the Friday trade. If VIX is above 17.18, stocks will be in retreat on Friday. If the SOX turns bearish, stocks will fall apart. If VIX is above 17.18, but the SOX remains bullish above 1478.25, the chips will likely win and stocks will remain buoyant.

If VIX is below 17.18, stocks will be in a happy mood into the weekend. If VIX is below 17.18 and the chips remain bullish, stocks will rally strongly into the weekend. Of course, if the retail stocks or banks turn bullish, or volatility bullish, as described above, the bulls will be in clover. It's not rocket science. The beat goes on.

8/11/19; 7:00 PM EST =

8/8/19; 11:40 AM EST = +12; signal line is +11; go long 2924; (Benchmark SPX for 2019 = +16.6%)(Keybot algorithm program this trade = +1.8%; Keybot algo for 2019 = +16.6%)(Actual results this trade = +3.4%; Actual trading results for 2019 = +30.8%)

8/8/19; 11:31 AM EST = -4; signal line is +12

8/8/19; 11:14 AM EST = +12; signal line is +14

8/7/19; 12:45 PM EST = -4; signal line is +16

8/7/19; 11:47 AM EST = -18; signal line is +19

8/7/19; 10:53 AM EST = -4; signal line is +21
8/7/19; 9:37 AM EST = -18; signal line is +24
8/6/19; 1:05 PM EST = -4; signal line is +27
8/6/19; 12:53 PM EST = -18; signal line is +29

8/6/19; 11:53 AM EST = -4; signal line is +32

8/6/19; 11:16 AM EST = -18; signal line is +35

8/6/19; 9:36 AM EST = -4; signal line is +37
8/5/19; 1:50 PM EST = -18; signal line is +40

8/5/19; 1:12 PM EST = -4; signal line is +44

8/5/19; 1:00 PM EST = -18; signal line is +47

8/5/19; 9:36 AM EST = -4; signal line is +49
8/4/19; 7:00 PM EST = +12; signal line is +52

8/2/19; 10:00 AM EST = +12; signal line is +54

8/2/19; 9:00 AM EST = +12; signal line is +56

8/1/19; 2:26 PM EST = +12; signal line is +58

8/1/19; 1:41 PM EST = +28; signal line is +60

8/1/19; 1:33 PM EST = +44; signal line is +61

8/1/19; 10:33 AM EST = +58; signal line is +62
8/1/19; 9:36 AM EST = +44; signal line is +62
7/31/19; 7:00 PM EST EOM = +58; signal line is +63
7/31/19; 3:32 PM EST = +58; signal line is +64
7/31/19; 3:06 PM EST = +44; signal line is +64

7/31/19; 2:55 PM EST = +28; signal line is +65

7/31/19; 2:51 PM EST = +44; signal line is +67; go short 2976; (Benchmark SPX for 2019 = +18.7%)(Keybot algorithm program this trade = -1.1%; Keybot algo for 2019 = +14.8%)(Actual results this trade = -2.0%; Actual trading results for 2019 = +27.4%)