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

Keybot the Quant flips to the short side today at SPX 3644. Volatility sent stocks lower but everything has since recovered anticipating a positive vote in Congress for the stimulus bull. The quant is already champing at the bit to go long again, hence the imminent turn notation in the title line, but the S&P 500 will need to be positive on the day to make that happen.

VIX is at 24.41; the Fed is jamming it lower to help equities recover. VIX 25.32 is the bull-bear line in the sand. Bears need VIX above 25.32 or they got buptkis. If the VIX remains sub 25.32, stocks will recover and the quant will probably whipsaw back to the long side.

If the VIX moves above 25.32, it proves the bears mean business and the stock market will likely begin falling hard. If RTH loses 154.72, that will flush stocks south. Ditto UTIL below 830.

On the last trade, that ran for about 6 weeks, with quiet action the last 3 weeks, the algo computer model gains +9% and the actual trading gains a huge +18%. The S&P 500 benchmark index, which is the US stock market, is up +13% this year with only a couple weeks remaining. Keybot's algorithm program is up a huge +33% on the year and the actual trading, which the model generates, is up an astounding +62% this year. Fibonacci would be proud. Keybot exits SSO and enters SDS remaining in the 2x leveraged ETF's.

Price action remains erratic and extremely unstable. VIX 25.32, RTH 154.72 and UTIL 830 tells you everything you need to know about the stock market direction ahead.

12/27/20; 7:00 PM EST =
12/23/20; 10:00 AM EST =
12/21/20; 12:33 PM EST = +72; signal line is +68 but algorithm remains short
12/21/20; 10:06 AM EST = +58; signal line is +67; go short 3644; (Benchmark SPX for 2020 = +12.8%)(Keybot algo this trade = +8.5%; Keybot algo for 2020 = +32.5%)(Actual trading results this trade = +17.8%; Actual trading results for 2020 = +61.8%)
12/21/20; 3:41 AM EST = +58; signal line is +67 but algorithm remains long
12/20/20; 7:00 PM EST = +72; signal line is +66
12/17/20; 9:00 AM EST = +72; signal line is +63
12/13/20; 7:00 PM EST = +72; signal line is +61
12/11/20; 10:00 AM EST = +72; signal line is +58
12/6/20; 7:00 PM EST = +72; signal line is +56
12/4/20; 9:00 AM EST = +72; signal line is +53
11/30/20; 7:00 PM EST EOM = +72; signal line is +51
11/29/20; 7:00 PM EST = +72; signal line is +49
11/25/20; 10:00 AM EST = +72; signal line is +46
11/24/20; 10:00 AM EST = +72; signal line is +43
11/22/20; 7:00 PM EST = +73; signal line is +41
11/18/20; 9:00 AM EST = +73; signal line is +38
11/15/20; 7:00 PM EST = +73; signal line is +36
11/13/20; 10:00 AM EST = +73; signal line is +35
11/12/20; 3:59 PM EST = +73; signal line is +34
11/12/20; 2:06 PM EST = +59; signal line is +33
11/10/20; 10:56 AM EST = +73; signal line is +32
11/10/20; 10:43 AM EST = +59; signal line is +31
11/9/20; 9:36 AM EST = +73; signal line is +31
11/8/20; 7:00 PM EST = +59; signal line is +31
11/6/20; 10:16 AM EST = +59; signal line is +31
11/6/20; 9:53 AM EST = +45; signal line is +31
11/6/20; 9:00 AM EST = +59; signal line is +32
11/5/20; 9:30 AM EST = +59; signal line is +32
11/5/20; 4:53 AM EST = +73; signal line is +32
11/4/20; 11:48 AM EST = +59; signal line is +32
11/3/20; 9:56 AM EST = +45; signal line is +32; go long 3360; (Benchmark SPX for 2020 = +4.0%)(Keybot algo this trade = +1.8%; Keybot algo for 2020 = +24.0%)(Actual trading results this trade = +1.4%; Actual trading results for 2020 = +44.0%)