STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the short side at SPX 3331 after Friday's opening bell as the stock market pandemonium continues. President Trump tests positive for coronavirus and is not on camera on Friday creating stock market angst. Hopefully, the president and First Lady, and a dozen others now sickened with COVID-19 in and around the Whitehouse, make speedy recoveries. Stocks collapsed at the open but that was the low print for the day. The bulls pumped utilities, copper and the banks higher to stabilize the stock market but copper faded. The stimulus deal is slightly more likely now that the president has taken ill which buoys stocks.

The quant prints 15 numbers on Friday a very active day. Keybot is champing at the bit to go long with the algo number 5 points above the signal line but the internal program parameters will not yet fully latch to permit the move. The unprecedented price behavior continues. This is Crazy erratic stuff occurring as dip-buyers constantly want to jump back into the market on any little pullback since everyone knows the Federal Reserve and other global central banks will print money forever to keep stocks elevated. Something's likely going to give at some point forward. If the SPX moves above 3369 on Monday, Keybot will likely whipsaw back to the long side.

The smoke is still clearing from Friday's activity. The bulls need SPX 3369 and they are all-clear for more upside. Bulls need lower volatility and stronger copper and commodities to push equities higher. The wild intraday huge moves up and down are occurring with the VIX still in the 20's. Just think how wild the price action will be in the days and weeks ahead when the VIX is in the 30's; the Dow will be moving 500, 600, 700 or more points intraday each way and day to day. It will be fun.

Bears need weaker banks and utilities to create a sharp down move in the stock market. Volatility, copper, banks and utes are going to determine market direction on Monday.

On the last trade, that ran for a week, the quant program gains about +3% and the actual trading about +4%. Keybot exits IWM and enters PSQ remaining in the 1x ETF's. For the year thus far, the SPX is up +3%, the Keybot the Quant algorithm program is up +24% and the actual trading generated by the quant is up +42%.

10/4/20; 7:00 PM EST =
10/2/20; 3:58 PM EST = +29; signal line is +24 but algorithm remains short
10/2/20; 3:33 PM EST = +43; signal line is +24 but algorithm remains short
10/2/20; 3:18 PM EST = +29; signal line is +22 but algorithm remains short
10/2/20; 2:27 PM EST = +43; signal line is +21 but algorithm remains short
10/2/20; 2:06 PM EST = +29; signal line is +19 but algorithm remains short
10/2/20; 1:56 PM EST = +13; signal line is +17
10/2/20; 1:45 PM EST = +29; signal line is +16 but algorithm remains short
10/2/20; 12:18 PM EST = +45; signal line is +13 but algorithm remains short
10/2/20; 12:05 PM EST = +13; signal line is +11 but algorithm remains short
10/2/20; 11:31 AM EST = +29; signal line is +10 but algorithm remains short
10/2/20; 10:48 AM EST = +13; signal line is +8 but algorithm remains short
10/2/20; 10:00 AM EST = -3; signal line is +6
10/2/20; 9:30 AM EST = -3; signal line is +4; go short 3331; (Benchmark SPX for 2020 = +3.0%)(Keybot algo this trade = +2.6%; Keybot algo for 2020 = +23.5%)(Actual trading results this trade = +3.7%; Actual trading results for 2020 = +42.2%)
10/2/20; 9:00 AM EST = -3; signal line is +3 but algorithm remains long
10/2/20; 3:06 AM EST = -3; signal line is +2 but algorithm remains long
10/1/20; 9:36 AM EST = +11; signal line is +3
9/30/20; 7:00 PM EST EOM EOQ3 = +41; signal line is +2
9/30/20; 3:06 PM EST = +41; signal line is -1
9/30/20; 2:52 PM EST = +27; signal line is -4
9/30/20; 2:12 PM EST = +41; signal line is -7
9/30/20; 1:07 PM EST = +27; signal line is -11
9/30/20; 12:49 PM EST = +41; signal line is -14
9/29/20; 12:15 PM EST = +27; signal line is -17
9/29/20; 11:54 AM EST = +13; signal line is -19
9/29/20; 10:00 AM EST = +27; signal line is -23
9/29/20; 9:36 AM EST = +20; signal line is -26
9/28/20; 11:43 AM EST = +34; signal line is -28
9/27/20; 7:00 PM EST = +20; signal line is -30
9/25/20; 1:39 PM EST = +20; signal line is -31
9/25/20; 1:36 PM EST = +4; signal line is -31
9/25/20; 11:17 AM EST = -10; signal line is -31
9/25/20; 11:07 AM EST = -26; signal line is -30
9/25/20; 10:45 AM EST = -10; signal line is -29
9/25/20; 10:41 AM EST = -26; signal line is -28
9/25/20; 9:39 AM EST = -42; signal line is -28 but algorithm remains long
9/25/20; 9:36 AM EST = -26; signal line is -26 but algorithm remains long
9/24/20; 3:52 PM EST = -10; signal line is -24; go long 3248; (Benchmark SPX for 2020 = +0.5%)(Keybot algo this trade = -0.5%; Keybot algo for 2020 = +20.9%)(Actual trading results this trade = -0.3%; Actual trading results for 2020 = +38.5%)