STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side yesterday afternoon at SPX 2928. The bulls pumped chips and retail stocks higher to turn Keybot bullish. The bulls are in charge but the algo number is only 9 points above the signal line. Considering the ebb and flow of markets due to non-stop news bites on trade and from the central banks, the choppiness will likely continue. Stay alert for a potential whipsaw today.

The stock market bears need RTH below 112.80 and SOX below 1536. Either parameter turning bearish immediately stops the upside in equities and places the algo in position to whipsaw short. The SPX then would likely have to drop below 2907 to go short. The S&P 500 begins the Thursday session at 2919 and the nutso headlines keep hitting the tape in the pre-market bouncing futures up and down like a ping-pong ball.

The bulls need to keep retail stocks and semiconductors bullish while pulling the banks and NYA index higher and volatility lower. Bulls need XLF above 27.51, NYA above 12742 and VIX below 16.12. The degree of upside in the stock market is directly proportional to these three parameters if they turn bullish and how many of the three turn bullish. The five parameters above tell you everything about stock market direction for the next week.

On the last trade, that ran for 3 weeks, the Keybot computer program gains a couple percent and the actual trading gains +3.5%. The benchmark SPX is up about +17% this year with the actual trading generated by the Keybot the Quant algorithm up almost +28%. Keybot exited SDS and entered SSO remaining in the 2x ETF's. The fun continues.

10/13/19; 7:00 PM EST =

10/11/19; 10:00 AM EST =

10/9/19; 3:33 PM EST = +12; signal line is +3; go long 2928; (Benchmark SPX for 2019 = +16.8%)(Keybot algorithm program this trade = +2.1%; Keybot algo for 2019 = +13.4%)(Actual results this trade = +3.5%; Actual trading results for 2019 = +27.7%)

10/9/19; 11:37 AM EST = +12; signal line is +3 but algorithm remains short

10/9/19; 11:13 AM EST = -4; signal line is +3

10/9/19; 10:06 AM EST = +12; signal line is +5 but algorithm remains short

10/9/19; 9:58 AM EST = -4; signal line is +7

10/9/19; 9:46 AM EST = +12; signal line is +8 but algorithm remains short
10/9/19; 9:36 AM EST = -4; signal line is +9

10/8/19; 3:03 PM EST = -20; signal line is +11
10/8/19; 2:36 PM EST = -4; signal line is +14

10/8/19; 2:07 PM EST = -20; signal line is +16

10/8/19; 1:31 PM EST = -4; signal line is +19

10/8/19; 1:03 PM EST = -20; signal line is +21

10/8/19; 12:51 PM EST = -4; signal line is +23

10/8/19; 9:49 AM EST = -20; signal line is +25

10/8/19; 9:36 AM EST = -4; signal line is +28
10/7/19; 2:10 PM EST = +26; signal line is +30
10/7/19; 1:52 PM EST = +42; signal line is +32 but algorithm remains short
10/6/19; 7:00 PM EST = +26; signal line is +32

10/4/19; 11:01 AM EST = +26; signal line is +33

10/4/19; 10:31 AM EST = +10; signal line is +34

10/4/19; 10:07 AM EST = +26; signal line is +36

10/4/19; 9:36 AM EST = +10; signal line is +37

10/4/19; 9:00 AM EST = -4; signal line is +39

10/3/19; 11:14 AM EST = -4; signal line is +41

10/2/19; 10:37 AM EST = -20; signal line is +43

10/2/19; 10:34 AM EST = -4; signal line is +46

10/2/19; 10:13 AM EST = +12; signal line is +48

10/2/19; 9:56 AM EST = -4; signal line is +49
10/2/19; 9:41 AM EST = +12; signal line is +51
10/1/19; 12:23 PM EST = +26; signal line is +52

10/1/19; 10:05 AM EST = +42; signal line is +54

10/1/19; 9:51 AM EST = +56; signal line is +55 but algorithm remains short

9/30/19; 7:00 PM EST EOM EOQ3 = +42; signal line is +55

9/29/19; 7:00 PM EST = +42; signal line is +55

9/27/19; 12:48 PM EST = +42; signal line is +56

9/27/19; 11:43 AM EST = +56; signal line is +57

9/27/19; 10:46 AM EST = +70; signal line is +58 but algorithm remains short

9/27/19; 10:14 AM EST = +56; signal line is +58
9/27/19; 10:00 AM EST = +42; signal line is +59
9/27/19; 9:58 AM EST = +40; signal line is +60

9/27/19; 9:36 AM EST = +54; signal line is +61

9/27/19; 4:11 AM EST = +68; signal line is +61 but algorithm remains short

9/26/19; 3:45 PM EST = +54; signal line is +61

9/26/19; 3:38 PM EST = +68; signal line is +62 but algorithm remains short
9/26/19; 2:18 PM EST = +54; signal line is +62
9/26/19; 9:55 AM EST = +40; signal line is +62

9/26/19; 9:15 AM EST = +54; signal line is +63

9/26/19; 4:47 AM EST = +68; signal line is +63 but algorithm remains short

9/26/19; 4:07 AM EST = +54; signal line is +64

9/26/19; 3:39 AM EST = +68; signal line is +64 but algorithm remains short

9/25/19; 3:59 PM EST = +54; signal line is +65

9/25/19; 3:46 PM EST = +68; signal line is +65 but algorithm remains short

9/25/19; 1:48 PM EST = +54; signal line is +66

9/25/19; 1:12 PM EST = +40; signal line is +66

9/25/19; 10:58 AM EST = +54; signal line is +68

9/25/19; 9:36 AM EST = +40; signal line is +69

9/24/19; 12:28 PM EST = +54; signal line is +70

9/24/19; 10:00 AM EST = +68; signal line is +71

9/23/19; 9:43 AM EST = +68; signal line is +71

9/23/19; 9:36 AM EST = +54; signal line is +70

9/22/19; 7:00 PM EST = +68; signal line is +70

9/18/19; 1:29 PM EST = +68; signal line is +70; go short 2992; (Benchmark SPX for 2019 = +19.4%)(Keybot algorithm program this trade = +2.4%; Keybot algo for 2019 = +11.3%)(Actual results this trade = +2.8%; Actual trading results for 2019 = +24.2%)