STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short late Tuesday at SPX 2870. On Monday, copper collapsed which started the negativity. Then, on Tuesday afternoon volatility began spiking creating the bear move. Overnight, the bulls were trying to jam volatility lower but failed. The central banker jack boots slipped off the neck of volatility. It is difficult to keep the VIX beachball underwater. Mix in negativity with Fed Chairman Powell's worrisome remarks this morning and Dr Fauci, who leads the Whitehouse coronavirus (COVID-19) medical team, opining doom and gloom, and you have a market bleeding red. Hedge fund guru David Tepper is negative on the market and that is a shocker. His calls carry weight and many hit the sell button today simply due to Tepper's negativity. He's been Mister Bull since QE1 in March 2009 which started the decade-long stock market rally to protect the wealthy class.

The bears are in control with the algo number only 11 points below the signal line. Volatility and copper are creating the stock market negativity while chips are keeping the bulls hopes alive.

Bears need SOX below 1663 (now at 1685) to create another huge leg lower in stocks. Bulls need either VIX below 32.58 (now at 37.13) and/or CPER above 14.92 (now at 14.73). Currently, into the closing bell, it looks like a standoff and both sides agree to go home and come back tomorrow to battle it out.

On the last trade that ran for only 3 days, the algo program and actual trading each lose a half percent. The benchmark S&P 500 is down -11% this year. The actual trading generated by Keybot the Quant is down -5% this year. The quant exits DIA and enters RWM. The choppy, sloppy, whipsaw price action continues chewing up bulls and bears alike. Chop. Chop. Chop. Chop suey.

Watch the chips. If SOX gives up the ghost, it is over for stocks. If the semiconductors rally, the bears will be slapped in the face again. All that is heard is the sound of silence as traders await the overnight move in global chip companies.

5/17/20; 7:00 PM EST =

5/15/20; 10:00 AM EST =

5/13/20; 10:58 AM EST = -53; signal line is -42

5/13/20; 5:13 AM EST = -39; signal line is -42 but algorithm remains short

5/13/20; 5:03 AM EST = -53; signal line is -42

5/13/20; 4:21 AM EST = -39; signal line is -41 but algorithm remains short

5/12/20; 3:59 PM EST = -53; signal line is -41; go short 2870; (Benchmark SPX for 2020 = -11.2%)(Keybot algo this trade = -0.6%; Keybot algo for 2020 = +2.2%)(Actual trading results this trade = -0.4%; Actual trading results for 2020 = -5.1%)

5/11/20; 10:54 AM EST = -39; signal line is -41

5/10/20; 7:00 PM EST = -23; signal line is -41

5/8/20; 9:00 AM EST = -23; signal line is -42

5/7/20; 9:30 AM EST = -23; signal line is -43; go long 2887; (Benchmark SPX for 2020 = -10.7%)(Keybot algo this trade = -1.1%; Keybot algo for 2020 = +2.8%)(Actual trading results this trade = -3.0%; Actual trading results for 2020 = -4.7%)