STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday at SPX 3200. Utilities and the NYA Index collapsed out of the gate creating broad based stock market negativity. Stay alert for a potential whipsaw since the price action is erratic and unstable. The quant was active on Tuesday printing 6 numbers and flipping short. The bears are in control of the stock market with the algo number 17 points below the signal line.

It is all about utes, the NYA Index and commodities. These three parameters are steering the broad stock market ship currently. UTIL, NYA and GTX are all in the bear camp which creates the sogginess in equities. Bears simply need to keep these three weak and make them weaker. Bulls need UTIL over 839-840, NYA above 12625 and/or GTX above 1698.

The NYA is at 12620 only 5 measly points in the bear camp. Bulls must pump the NYA above 12625, otherwise, each day that passes is another nail in the bull coffin. NYA not only matters in the direct short-term, as in today, but also has an intermediate and long-term impact on equities. The NYA 12625 bull-bear line in the sand tells you everything you need to know about broad stock market direction.

The drama with utilities continues. If UTIL remains below 839 going forward, the stock market is in serious trouble.

On the last trade, that ran for almost a month, the Keybot program gains +12% and the actual trading gains a humongous +20% due to the small cap joy. The SPX gets back to even on the year, almost, down -1% for 2020 thus far. The actual trading generated by the Keybot robot is up +17% on the year. Keybot exits IWM and enters SDS. The quant is back in the 2x ETF's but caution is warranted since a whipsaw may occur in these erratic markets and because Federal Reserve Chairman Powell speaks today. If Powell promises more easy money, stocks may catapult higher.

Watch UTIL 839-840 and NYA 12625 since these two will dictate stock market direction today. Time to see what the bears got. Will the bears strut around as sharp-dressed men or will they fold like a cheap suit?

6/14/20; 7:00 PM EST =

6/12/20; 10:00 AM EST =

6/9/20; 3:59 PM EST = +7; signal line is +24

6/9/20; 12:45 PM EST = +21; signal line is +24

6/9/20; 11:43 AM EST = +7; signal line is +23

6/9/20; 10:52 AM EST = +21; signal line is +23

6/9/20; 9:58 AM EST = +7; signal line is +21; go short 3200; (Benchmark SPX for 2020 = -1.0%)(Keybot algo this trade = +12.0%; Keybot algo for 2020 = +14.6%)(Actual trading results this trade = +20.3%; Actual trading results for 2020 = +16.5%)

6/9/20; 9:36 AM EST = +21; signal line is +21 but algorithm remains long

6/8/20; 12:51 PM EST = +53; signal line is +20

6/8/20; 12:47 PM EST = +37; signal line is +18

6/8/20; 12:34 PM EST = +21; signal line is +17

6/8/20; 12:31 PM EST = +37; signal line is +16

6/8/20; 11:52 AM EST = +53; signal line is +14

6/8/20; 11:32 AM EST = +37; signal line is +12

6/8/20; 10:59 AM EST = +53; signal line is +9

6/8/20; 10:57 AM EST = +37; signal line is +6
6/7/20; 7:00 PM EST = +21; signal line is +3

6/5/20; 3:59 PM EST = +21; signal line is +1

6/5/20; 3:48 PM EST = +7; signal line is -1

6/5/20; 12:12 PM EST = +21; signal line is -3

6/5/20; 11:57 AM EST = +37; signal line is -6

6/5/20; 11:43 AM EST = +21; signal line is -9

6/5/20; 11:36 AM EST = +37; signal line is -11

6/5/20; 10:48 AM EST = +21; signal line is -14

6/5/20; 10:33 AM EST = +7; signal line is -17

6/5/20; 10:10 AM EST = +21; signal line is -20

6/5/20; 10:02 AM EST = +7; signal line is -22

6/5/20; 9:36 AM EST = +21; signal line is -24

6/5/20; 9:00 AM EST = +7; signal line is -26
5/31/20; 7:00 PM EST EOM = +7; signal line is -28

5/29/20; 10:00 AM EST = +7; signal line is -30

5/27/20; 12:16 PM EST = +7; signal line is -31

5/27/20; 11:51 AM EST = -9; signal line is -32

5/27/20; 10:38 AM EST = -23; signal line is -32

5/27/20; 9:55 AM EST = -9; signal line is -32
5/26/20; 3:57 PM EST = +7; signal line is -33

5/26/20; 3:46 PM EST = -7; signal line is -36

5/26/20; 10:00 AM EST = +7; signal line is -38

5/26/20; 9:36 AM EST = +7; signal line is -40

5/24/20; 7:00 PM EST = -23; signal line is -43

5/19/20; 9:00 AM EST = -23; signal line is -44
5/18/20; 9:36 AM EST = -23; signal line is -45

5/17/20; 7:00 PM EST = -39; signal line is -46

5/15/20; 2:02 PM EST = -39; signal line is -46; go long 2858; (Benchmark SPX for 2020 = -11.5%)(Keybot algo this trade = +0.4%; Keybot algo for 2020 = +2.6%)(Actual trading results this trade = +1.3%; Actual trading results for 2020 = -3.8%)