STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short and idles along each day on the bear path. The bears remain in charge of the stock market with the algo number 25 points below the signal line. April begins sick like the month of March.

The quant signals a housing recession as of 4/3/20. Remember, Keybot signaled a housing recession in July (that was then nullified in August). The robot identified the weakness in the housing sector last summer and the economy and markets were quickly deteriorating (despite the happy talk from the Federal Reserve). This led to the liquidity event in September that scared the H*ll out of Fed Chairman Powell. The Fed stick-saved the markets from freezing-up by printing money overtime non-stop through the end of last year into this year. The QE (quantitative easing) that the Fed says is not QE pumped the stock market to epic heights rewarding America's wealthy that own large equity portfolios. The Fed's action negated Keybot the Quant's housing recession call. As of Friday, however, the housing recession is now back in play. Whatcha gonna do this time rich Uncle Fed? You have already thrown the kitchen sink at the collapsing markets in March.

The stock market bloodbath continues. The bulls need lower volatility to calm things down so a relief rally can develop. Bulls need VIX below 25.70 (now at 46.80). Bulls will also benefit from stronger chips (SOX) and utes (UTIL). Until then, the bears are going to keep using the bull's faces as punching bags.

Good Friday is this week so US markets will be closed. Easter is Sunday. Today is Palm Sunday. Stocks are usually bullish the two days in front of a three-day holiday weekend. The full moon peaks on Tuesday at 10:35 PM EST and equities are typically buoyant through the full moon. Thus, the underlying stock market current is slightly bullish from, say, Tuesday afternoon into the weekend which begins for traders in the US on Thursday at 4:00 PM EST. The coronavirus (COVID-19) situation, however, may have a different plan in store for markets. The Saudi, Russia, USA oil love triangle will also impact market direction.

Fortunately, the quant does not have to think about all that crap since it only sees 1's and 0's. Keybot prints a pre-scheduled number this week on Thursday morning, Holy Thursday, the last day of trading for the four-day week ahead. Markets remain erratic and unstable; the song remains the same. 

4/12/20; 7:00 PM EST =
4/9/20; 10:00 AM EST =

4/5/20; 7:00 PM EST = -66; signal line is -41
4/3/20; 9:00 AM EST = -66; signal line is -39
3/31/20; 7:00 PM EST EOM EOQ1 = -54; signal line is -37

3/31/20; 10:00 AM EST = -54; signal line is -35

3/29/20; 7:00 PM EST = -54; signal line is -34

3/27/20; 10:00 AM EST = -54; signal line is -32

3/22/20; 7:00 PM EST = -52; signal line is -31

3/18/20; 9:00 AM EST = -52; signal line is -29

3/15/20; 7:00 PM EST = -52; signal line is -28
3/13/20; 10:00 AM EST = -52; signal line is -28

3/11/20; 9:36 AM EST = -52; signal line is -27; go short 2815; (Benchmark SPX for 2020 = -12.9%)(Keybot algo this trade = -2.1%; Keybot algo for 2020 = +7.8%)(Actual trading results this trade = -3.7%; Actual trading results for 2020 = +10.5%)

3/10/20; 3:54 PM EST = -20; signal line is -26; go long 2875; (Benchmark SPX for 2020 = -11.0%)(Keybot algo this trade = +11.0%; Keybot algo for 2020 = +9.9%)(Actual trading results this trade = +8.0%; Actual trading results for 2020 = +14.2%)