STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short during the holiday weekend. Trading resumes Tuesday morning. Volatility and copper remain key. Watch VIX 13.13 and JJC 41.73. Both are causing market negativity right now. If the broad indexes recover, the bulls need at least one of these two sectors to verify the recovery, if not, the markets will likely roll over again after any bounce. The algo is also tracking utilities; the UTIL 481 level. Markets will become far more negative if 481 fails but the bulls will be in continual position to regain control of markets as long as UTIL stays above 481.

For the SPX starting at 1650, the bulls only need to see green futures overnight Monday and a market bounce will be on tap Tuesday morning with the SPX moving up towards 1660. The bears need to push price under 1637 to accelerate the downside. A move through 1638-1650 is sideways action for Tuesday. Keybot prints a pre-scheduled number one-half hour after the markets reopen so the action can be updated at that time. Another pre-scheduled number prints this week on Friday morning. The month of May ends on Friday, EOM. Markets remain erratic and unstable.

6/2/13; 7:00 PM EST EOM =

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST =

5/26/13; 7:00 PM EST = +32; signal line is +42

5/23/13; 9:45 AM EST = +32; signal line is +44

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish over the holiday weekend. The algo idles along on Friday without printing any numbers. Volatility and copper remain key for next week. Levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow.

5/26/13; 7:00 PM EST =

5/23/13; 9:45 AM EST = +32; signal line is +44

5/23/13; 9:30 AM EST = +0; signal line is +44

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Friday session. VIX 13.12 and JJC 41.77 remain key. Both are creating bearishness in markets so the bulls need to regain one or both of these levels. For the SPX starting at 1651, the bulls need to move above 1655.50 and the upside will accelerate. The bears need to drop under 1637 to accelerate the downside. A move through 1638-1655 is sideways action today. If either VIX or JJC reach the levels shown above, and the SPX moves towards 1656 and higher, Keybot may flip back to the long side, otherwise, the bears will maintain control. Markets remain erratic and very unstable.

5/26/13; 7:00 PM EST =

5/23/13; 9:45 AM EST = +32; signal line is +44

5/23/13; 9:30 AM EST = +0; signal line is +44

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short. The utilities sector experiences a mini flash crash in the first few minutes of trading but recovers. UTIL 481 is a bull-bear line that the algo is now tracking with interest. UTIL is printing 497 and market bears would receive more downside fuel if 481 is lost. Higher volatility and lower copper and commodities are the main negative drivers in place right now.

5/26/13; 7:00 PM EST =

5/23/13; 9:45 AM EST = +32; signal line is +44

5/23/13; 9:30 AM EST = +0; signal line is +44

5/22/13; 3:58 PM EST = +48; signal line is +46 but algorithm says stay short

5/22/13; 2:12 PM EST = +32; signal line is +46; go short 1661; (Benchmark SPX for 2013 = +16.5%)(Keybot this trade = +5.9%; Keybot for 2013 = +6.8%)(Actual this trade = +5.0%; Actual for 2013 = +5.5%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side. Volatility spiked and copper tumbled lower creating market negativity. As always, stay alert for a whipsaw tomorrow. Watch VIX 13.12 and JJC 41.77. In the final few minutes, copper recovered to close at JJC 41.82, jumping back into the bull camp, creating the lift in equities into the closing bell. Watch copper overnight since positivity will lead to a bull recovery tomorrow but negativity in copper will continue the market push lower.

Keybot exited DIA and entered SDS, a double inverse ETF. The last trade results in a 6% gain for the algo program and 5% gain in actual trading. For the SPX on Thursday starting at 1655, the bears need to push under the strong 1649-1650 support to take the next leg lower. Bulls need to recover today's losses and then some, a huge task of about 33 points of upside, a formidable endeavor, but never say never in these crazy markets. Instead, the bulls will focus on pushing copper higher and volatility lower to stem the downside. Markets remain erratic and unstable, simply look at today's action. Tomorrow the bears show if they have any gusto, or not.

5/26/13; 7:00 PM EST =

5/22/13; 3:58 PM EST = +48; signal line is +46 but algorithm says stay short

5/22/13; 2:12 PM EST = +32; signal line is +46; go short 1661; (Benchmark SPX for 2013 = +16.5%)(Keybot this trade = +5.9%; Keybot for 2013 = +6.8%)(Actual this trade = +5.0%; Actual for 2013 = +5.5%)

5/22/13; 10:20 AM EST = +48; signal line is +46

5/22/13; 10:13 AM EST = +62; signal line is +46

5/22/13; 9:30 AM EST = +48; signal line is +45

5/21/13; 2:37 PM EST = +32; signal line is +44 but algorithm says stay long

5/21/13; 11:30 AM EST = +46; signal line is +44

5/21/13; 10:34 AM EST = +32; signal line is +44 but algorithm says stay long

5/21/13; 10:12 AM EST = +48; signal line is +45

5/21/13; 9:30 AM EST = +62; signal line is +45

5/20/13; 10:24 AM EST = +46; signal line is +43

5/20/13; 9:30 AM EST = +32; signal line is +42 but algorithm says stay long

5/19/13; 7:00 PM EST = +46; signal line is +41

5/17/13; 10:00 AM EST = +46; signal line is +40

5/16/13; 3:58 PM EST = +46; signal line is +38

5/16/13; 3:47 PM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 10:36 AM EST = +46; signal line is +38

5/16/13; 10:01 AM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 9:00 AM EST = +46; signal line is +38

5/15/13; 1:35 PM EST = +46; signal line is +37

5/15/13; 12:40 PM EST = +32; signal line is +37 but algorithm says stay long

5/13/13; 9:30 AM EST = +46; signal line is +37

5/12/13; 7:00 PM EST = +62; signal line is +36

5/10/13; 3:54 PM EST = +62; signal line is +34

5/8/13; 11:04 AM EST = +46; signal line is +33

5/8/13; 9:32 AM EST = +62; signal line is +32

5/5/13; 7:00 PM EST = +46; signal line is +31

5/3/13; 9:00 AM EST = +46; signal line is +31

5/2/13; 10:14 AM EST = +46; signal line is +31

5/1/13; 9:36 AM EST = +32; signal line is +31

4/30/13; 7:00 PM EST EOM = +46; signal line is +32

4/30/13; 10:45 AM EST = +46; signal line is +32

4/30/13; 10:00 AM EST = +32; signal line is +31

4/30/13; 9:58 AM EST = +32; signal line is +32 but algorithm says stay long

4/28/13; 7:00 PM EST = +46; signal line is +32

4/26/13; 10:00 AM EST = +46; signal line is +32

4/23/13; 9:30 AM EST = +46; signal line is +32; go long 1569; (Benchmark SPX for 2013 = +10.0%)(Keybot this trade = -0.2%; Keybot for 2013 = +0.9%)(Actual this trade = -0.8%; Actual for 2013 = +0.5%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. JJC is 42.05 above the 41.79 bull-bear line, bullish.  VIX is 13.44 above the 13.12 bull-bear line, bearish. The algo is active today. Note that there is only two points separating the algo number and signal line showing that the markets are at an inflection point. Bulls need lower volatility and bears need lower copper. JJC 41.79 and VIX 13.12 will tell the story today.

5/26/13; 7:00 PM EST =

5/22/13; 10:20 AM EST = +48; signal line is +46

5/22/13; 10:13 AM EST = +62; signal line is +46

5/22/13; 9:30 AM EST = +48; signal line is +45

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Copper bounces today playing spoiler for the bears. Watch VIX 13.12 and JJC 41.79. VIX is 13.39, surprisingly remaining bearish, while JJC is 42.11 flipping into the bull camp creating market buoyancy.

5/26/13; 7:00 PM EST =

5/22/13; 9:30 AM EST = +48; signal line is +45

5/21/13; 2:37 PM EST = +32; signal line is +44 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long. The algo wants to flip short but the internal signals are not lining up properly to commit to the short side. Bears had another golden opportunity yesterday but could not create enough downside energy. Watch VIX 13.11, JJC 41.77 and GTX 4795. All are in the bear camp right now creating market negativity but copper is up this morning favoring the bulls once again. For the SPX starting at 1669, the bulls need to touch the 1675 handle to accelerate the upside into the 1680's. The bears need to push under 1663 to accelerate the downside. A move through 1664-1674 is sideways action. If the SPX drops under 1663, Keybot will likely flip short. If JJC moves above 41.77 or the VIX drops back under 13.11, the bulls will maintain leadership moving forward. Markets remain erratic and unstable as the bulls march higher.

5/26/13; 7:00 PM EST =

5/21/13; 2:37 PM EST = +32; signal line is +44 but algorithm says stay long

5/21/13; 11:30 AM EST = +46; signal line is +44

STOCK MARKET BULLISH - -LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long in a very active day for the algo. As highlighted this morning, volatility and copper are running the show today, VIX 13.12 and JJC 41.77, respectively. At the 10:34 AM signal, Keybot was a hair away from going short but the internal programming rules held it back.  Then the SPX runs higher to punch through the 1673 the bulls needed to accelerate the upside. The SPX petered out after a HOD at 1674.93 so only a two handle jump occurs past 1673. VIX now jumps back above 13.12 which is causing the SPX to drift lower again.

Keybot wants to flip short right now but is held back since the proper signals are not lined up correctly. Under the current conditions, the SPX needs to drop under 1662.67, and hold that failure for five minutes, and Keybot will flip short, otherwise, Keybot will remain long through the closing bell. A turn appears imminent. The bears had it in their grasp this morning, once again, only to run out of gas and let the bulls maintain control. Bears need the SPX to drop under 1663.

5/26/13; 7:00 PM EST =

5/21/13; 2:37 PM EST = +32; signal line is +44 but algorithm says stay long

5/21/13; 11:30 AM EST = +46; signal line is +44

5/21/13; 10:34 AM EST = +32; signal line is +44 but algorithm says stay long

5/21/13; 10:12 AM EST = +48; signal line is +45

5/21/13; 9:30 AM EST = +62; signal line is +45

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Copper buoyancy (JJC) provides market lift but JJC is dancing all around the 41.77 bull-bear line. VIX is under 13.12 by pennies. Things can go either way today. Watch JJC 41.77, VIX 13.12 and GTX 4795. The imminent turn notation is removed once again since the bulls are bouncing copper.

5/26/13; 7:00 PM EST =

5/21/13; 9:30 AM EST = +62; signal line is +45

5/20/13; 10:24 AM EST = +46; signal line is +43

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long moving into the Tuesday session. Volatility spiked higher (helping market bears) yesterday only to fall back (helping bulls) as it has for many times recently. At the same time, copper rose yesterday. The algo identifies three key parameters most affecting market direction; volatility, copper and commodities. Watch VIX 13.12, JJC 41.76, and GTX 4800, respectively. VIX is 13.02 creating market upside. JJC is 41.67 and GTX is 4760 creating market downside. The movement of these three parameters will dictate market direction.

The market bulls want the VIX to stay under 13.12 while moving JJC above 41.76 and/or GTX above 4800. If JJC moves above 41.76, the SPX will move well into the 1670's. If both JJC and GTX turn bullish the SPX is likely headed for the 1680's and much higher. The bears want to move the VIX above 13.12 to provide downside negativity for markets while at the same time maintaining the JJC and GTX bearishness. This action may begin more extended market selling moving forward.

For the SPX starting at 1666, the bulls need to touch the 1673 handle and it is off to the races higher with price moving towards 1680. The bears need to push under 1664 to create a downside acceleration.  A move through 1665-1672 is sideways action.  If the VIX moves above 13.12 and the SPX drops under 1664, it is likely that Keybot will flip short, hence the imminent turn notation in the title line. However, if JJC prints above 41.76, the bulls will likely maintain full control moving forward. At this writing, about four hours before the U.S. opening bell, copper is lower. Markets remain erratic and unstable.

5/26/13; 7:00 PM EST =

5/20/13; 10:24 AM EST = +46; signal line is +43

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains bullish. Volatility falls again so the same-o story plays out in the bulls favor.  Watch VIX 13.12, now at 13.07, market bullish. The broad indexes are flat to positive on the day thus far. The imminent turn notation is removed but the caution sign remains since the algo number is only three points from the signal line. Market bears need VIX under 13.12 and SPX under 1653 today to see the algo flip short.

5/26/13; 7:00 PM EST =

5/20/13; 10:24 AM EST = +46; signal line is +43

5/20/13; 9:30 AM EST = +32; signal line is +42 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the new week of trading begins. Out of the gate the algo prints a number which triggers a desire to go short but other internal programming rules are not in line as yet to allow the move to the short side. One of the key critieria the algo would need to see is last Friday's low at the 1652.50-ish area. The SPX is now printing a 1664 handle comfortably twelve points above. Keybot will not flip short unless the SPX drops under 1653-ish today. Remember, Keybot is not programmed to catch the exact tops and exact bottoms so it will always relinquish a few handles at the turns.

Volatility jumps at the bell which creates the market weakness. The algo is tracking VIX 13.10-13.11 and the current print is 13.24, above, so the bears are making another run again trying to push the indexes lower. Each time recently that the VIX has turned bearish (moving higher), the bulls came along and jammed it lower to save the day for the SPX. Watch VIX 13.10-ish closely today since it will tell you the preferred direction; above 13.10 is happy bears and below 13.10 is happy bulls. Watch SPX 1653-ish since that is the area today that Keybot would likely flip short, if it occurs. The imminent turn notation is highlighted in the title again. Keybot is ready to go short but the bears have to push the broad indexes lower to show they mean business and allow the algo to commit.

5/26/13; 7:00 PM EST =

5/20/13; 9:30 AM EST = +32; signal line is +42 but algorithm says stay long

5/19/13; 7:00 PM EST = +46; signal line is +41

STOCK MARKET BULLISH -- LONG - CAUTION

Keybot the Quant is long moving into the new week of trading. Lots of theatrics occur last week with the wild moves in volatility but the bears continue to end up on the short end. The algo continues to track volatility as the main market driver currently. Watch VIX 13.18; bulls win above, bears win below. If the VIX moves above 13.18, and the SPX drops under 1652.50, Keybot will likely flip to the short side.

For the SPX starting at 1667, the bulls are on easy street only needing to see positive futures overnight Sunday, and the upside thrust will continue with the SPX moving into the 1670's. The bears need to keep futures negative overnight and push under 1652.50 after the opening bell tomorrow to accelerate the downside. A move through 1653-1667 is sideways action. Keybot does not print any pre-scheduled numbers during trading this week so market forces will dictate all the action. Markets remain highly unstable and erratic.  The algo number is only five points from the signal line so, despite the strong rally, the markets are very vulnerable to a pull back.

5/26/13; 7:00 PM EST =

5/19/13; 7:00 PM EST = +46; signal line is +41

5/17/13; 10:00 AM EST = +46; signal line is +40

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the weekend. Volatility collapsed yesterday providing rocket fuel for the bulls and will remain key next week. The areas and levels of interest can be identified once the pre-scheduled Sunday number prints tomorrow. 

5/19/13; 7:00 PM EST =

5/17/13; 10:00 AM EST = +46; signal line is +40

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The pre-scheduled number results in a two tick move higher for the signal line. VIX collapses now printing at 12.52. SPX leaps higher to test the 1660.50 break-out level for today. The bulls are running again and the imminent turn notation is removed. The algo number is only six points from the signal line. Bears have no oomph unless they achieve VIX 13.19 and volatility is dropping instead of rising.

5/19/13; 7:00 PM EST =

5/17/13; 10:00 AM EST = +46; signal line is +40

5/16/13; 3:58 PM EST = +46; signal line is +38

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long. There was some late afternoon drama yesterday with volatility spiking but the bears simply do not have the oomph as yet to create a market turn. Watch VIX 13.19; now at 13.07 creating market bullishness.  For the SPX in the Friday session starting at 1650, the bulls need to punch up through 1660.50, about ten points higher, to initiate a new multi-handle upwards acceleration. The bears have the easier road only needing to push under 1649 to accelerate the downside targeting 1634-1636. The S&P futures, at this writing about four hours ahead of the U.S. open, are up six. A move through 1650-1659 is sideways action. If VIX moves above 13.19 and holds this level or higher, and the SPX drops under 1649, Keybot will likely flip short.

Note the three teases to the short side this week. The algo was positioned to go short once on Wednesday and twice yesterday, but the internal programming rules would not trigger the move, and the bears ran out of gas. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time. Markets remain erratic and unstable.

5/19/13; 7:00 PM EST =

5/17/13; 10:00 AM EST =

5/16/13; 3:58 PM EST = +46; signal line is +38

5/16/13; 3:47 PM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 10:36 AM EST = +46; signal line is +38

5/16/13; 10:01 AM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 9:00 AM EST = +46; signal line is +38

5/15/13; 1:35 PM EST = +46; signal line is +37

5/15/13; 12:40 PM EST = +32; signal line is +37 but algorithm says stay long

5/13/13; 9:30 AM EST = +46; signal line is +37

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Volatility collapses once again falling through 13.20 and the 13 level so equities recover. This takes away the imminent turn status since the algo needs to see higher volatility. The SPX moves higher but the bulls are not yet able to punch up through 1661.50 so it appears neither side wants the ball today. Watch VIX 13.20.

5/17/13; 10:00 AM EST =

5/16/13; 10:36 AM EST = +46; signal line is +38

5/16/13; 10:01 AM EST = +32; signal line is +37 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long but the spike in volatility this morning is ushering in market weakness. The Nasdaq index and tech in general, however, is receiving a bullish push due to happy CSCO earnings and commentary. VIX is 13.38, above the 13.20 bull-bear danger line, creating market negativity moving forward, as long as the VIX stays above 13.20. The SPX is printing 1656 well above the 1647 level that market bears need to see for the algo to flip to the short side. Thus, perhaps some market drama is on tap today. Pay attention to VIX 13.20 and SPX 1647, and, if the bulls recover, watch SPX 1661.50. The bulls are driving the bus but a turn may be imminent if the SPX loses about nine handles from current levels.

5/17/13; 10:00 AM EST =

5/16/13; 10:01 AM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 9:00 AM EST = +46; signal line is +38

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The algo prints the pre-scheduled number resulting in a one tick up move for the signal line. This provides the market bears with a smidge easier level to cross to the downside. As previously mentioned, watch VIX 13.20 and SPX 1661.50 and 1647.

5/17/13; 10:00 AM EST =

5/16/13; 9:00 AM EST = +46; signal line is +38

5/15/13; 1:35 PM EST = +46; signal line is +37