STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is back on the short side at SPX 6941 before munchtime today. The tug-o-war continues. The jobs number was better than expected so traders and investors do not expect rate cuts anytime soon. The absence of easy money rate cuts, that pump stocks higher to reward the wealthy class, creates the sogginess in stocks today. It is called crony capitalism filth.

Utes, retail stocks, banksters and volatility are all that matter. Utilities must have taken Viagra because the move higher was obscene helping the bulls.

The other three parameters, however, are in the bear camp creating the weak stock market and the flip short today for the quant. The algo number is only 8 points below the signal line so the robot may flip back long tomorrow. The price action is nauseating.

No wonder the bulls would not let utilities fall and instead kept pumping Ethel all day long. UTIL leaps to 1120 and it is understandable why. Next week, the 1112 line in the sand is meaningless and replaced with 1127. Thus, the bulls are trying to pump UTIL up towards or over 1127 to start next week on a high note. There are two days remaining this week so watch UTIL, or DJU, and where it ends at 4 PM EST Friday since that will provide a heads-up for Tuesday (Monday closed for Presidents Day). If UTIL is above 1127 to start next week, it is happy time for bulls. If UTIL starts the week below 1127, there is likely Hell to pay. If UTIL falls below 1112 tomorrow or Friday, the gates to Hades will open.

Bulls need XRT above 87.53, XLF above 54.02, and or VIX below 17.24. Any of the three could flip bullish tomorrow. The bulls only need one to turn bullish and that will set things up for a rally, and 2 of the 3 will send stocks strongly higher, and 3 of 3 turning bullish will create a party atmosphere into the weekend with a Monday holiday. If all 3 remain bearish tomorrow and Friday, it is an old man holding a lantern on a dark sidewalk telling you that 'the end is nigh'.

On the last trade that ran for three days, the algo program and the actual trading each log marginal gains. For the year, the benchmark S&P 500 is up about a percent, the quant program is down about -3% and the actual trading is down about a percent. It is a whole lot of nothing as the chop suey is rammed down everyone's throats. Keybot the Quant exits DIA and enters DOG.

You can watch utes, retail stocks, banks and volatility and ignore everything else. Let's see if the bears got game or if they will fold like a cheap suit. Sharp Dressed Man. Lovely ladies. ZZ Top.

2/15/26; 7:00 PM EST =
2/11/26; 2:52 PM EST = +8; signal line is +16
2/11/26; 2:29 PM EST = +22; signal line is +15 but algorithm remains short
2/11/26; 11:06 AM EST = +8; signal line is +15
2/11/26; 11:02 AM EST = -8; signal line is +15; go short 6941 (Benchmark SPX for 2026 = +1.4%)(Keybot algo this trade = +0.5%; Keybot algo for 2026 = -3.3%)(Actual results this trade = +0.3%; Actual results for 2026 = -1.2%)
2/11/26; 10:58 AM EST = -8; signal line is +16 but algorithm remains long
2/11/26; 10:25 AM EST = +8; signal line is +17 but algorithm remains long
2/11/26; 10:03 AM EST = +24; signal line is +17
2/11/26; 9:36 AM EST = +38; signal line is +16
2/11/26; 9:00 AM EST = +22; signal line is +16
2/11/26; 8:36 AM EST = +22; signal line is +16
2/10/26; 3:59 PM EST = +8; signal line is +16 but algorithm remains long
2/10/26; 1:46 PM EST = +24; signal line is +17
2/10/26; 1:07 PM EST = +8; signal line is +17 but algorithm remains long
2/10/26; 12:57 PM EST = +22; signal line is +17
2/10/26; 11:07 AM EST = +8; signal line is +16 but algorithm remains long
2/10/26; 9:51 AM EST = +24; signal line is +16
2/9/26; 3:34 PM EST = +8; signal line is +15 but algorithm remains long
2/9/26; 3:31 PM EST = +24; signal line is +14
2/9/26; 11:44 AM EST = +38; signal line is +14
2/8/26; 7:00 PM EST = +24; signal line is +12
2/6/26; 12:31 PM EST = +24; signal line is +11; go long 6908 (Benchmark SPX for 2026 = +0.9%)(Keybot algo this trade = -0.1%; Keybot algo for 2026 = -3.8%)(Actual results this trade = +1.3%; Actual results for 2026 = -1.5%)