Saturday, August 17, 2019

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 2888. The erratic whippy stock market price behavior continues. Keybot has flipped direction five times in the last 7 trading days which is unprecedented activity never seen in the over one-decade history of the algorithm. This behavior verifies the ongoing erratic and unstable nature of the stock market.

The bulls are in charge with the algo number 14 points above the signal line. The chips create lots of strength in the stock market on Friday; the SOX pops above 1472. The NYA index moves above 12532 so boom, equities took off higher. The wild and historic price action continues.

On the last trade, that lasted only two days, the Keybot program and the actual trading each log marginal losses. The SPX benchmark is up +15% this year. The actual trading generated by Keybot is up +23% this year. Keybot exits SH and enters IWM. The erratic whipsaw markets in August keep chewing up the trading gains this year. Algo's obviously prefer trending markets.

8/18/19; 7:00 PM EST =
8/16/19; 10:57 AM EST = +12; signal line is -2; go long 2888; (Benchmark SPX for 2019 = +15.2%)(Keybot algorithm program this trade = -0.3%; Keybot algo for 2019 = +11.0%)(Actual results this trade = -0.4%; Actual trading results for 2019 = +22.7%)
8/16/19; 10:52 AM EST = +12; signal line is -3 but algorithm remains short
8/16/19; 10:47 AM EST = -4; signal line is -4 but algorithm remains short
8/16/19; 10:00 AM EST = -18; signal line is -3
8/16/19; 9:00 AM EST = -18; signal line is -2
8/14/19; 9:48 AM EST = -18; signal line is -1; go short 2879; (Benchmark SPX for 2019 = +14.8%)(Keybot algorithm program this trade = -2.2%; Keybot algo for 2019 = +11.3%)(Actual results this trade = -2.2%; Actual trading results for 2019 = +23.1%)

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