STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side this morning shortly after the opening bell at SPX 3745. As seen this morning, the Fed came to the rescue jumping on top of Uncle Vix, wrestling him to the ground and making sure he stays down. The VIX drops to a 22-handle so equities leap higher. The algo number is only 3 measly points above the signal line but it was enough to coax the robot to flip long.

The bulls knew what they needed to do, and they did it. Bears need VIX above 25.29 or they got nothing. It is a surprise to see the bulls take over. Bulls must keep the VIX low and heading lower.

On the last trade, which is the first trade of the year, only lasting a couple days, the S&P 500 benchmark and Keybot's program are each up +0.3% while the actual trading is up +0.6% to start the year. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's. On a side note, that last trade was entered on 12/21/20 if you recall but the quant had to be rezeroed because of the new year. Just looking at that last trade itself from 12/21/20 to now, the program would have lost -2.8% and the actual trading would have lost -3.4%. The new year actually helped the robot begin the year on an upbeat.

Stay alert for a whipsaw back to the short side at any time. Watch VIX 25.29 for the market answer. You don't even have to watch the stock market itself, simply watch VIX 25.29 and you know how the stock market moves. The price action remains erratic and unstable.

1/10/21; 7:00 PM EST =
1/8/21; 9:00 AM EST =
1/6/21; 10:10 AM EST = +67; signal line is +64; go long 3745; (Benchmark SPX for 2021 = +0.3%)(Keybot algo this trade = +0.3%; Keybot algo for 2021 = +0.3%)(Actual results this trade = +0.6%; Actual results for 2021 = +0.6%)
1/6/21; 4:45 AM EST = +67; signal line is +64
1/5/21; 3:59 PM EST = +53; signal line is +65
1/5/21; 3:55 PM EST = +67; signal line is +65 but algorithm remains short
1/5/21; 3:22 PM EST = +53; signal line is +66
1/5/21; 3:10 PM EST = +67; signal line is +66 but algorithm remains short
1/5/21; 2:59 PM EST = +53; signal line is +67
1/5/21; 2:06 PM EST = +67; signal line is +67 but algorithm remains short
1/4/21; 1:16 PM EST = +53; signal line is +67
1/4/21; 11:56 AM EST = +37; signal line is +68
1/4/21; 10:51 AM EST = +53; signal line is +68
1/1/21; Begin 2021 Data Set = +67; signal line is +69; go short 3756; (Benchmark SPX for 2021 = 0%)(Keybot algo this trade = 0%; Keybot algo for 2021 = 0%)(Actual trading results this trade = 0%; Actual trading results for 2021 = 0%)