STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains short despite the pop today, at least so far.  The algorithm kicked out a number at the opening bell which now places the algorithm directly on top of the signal line.  This does not happen often and is more testimony to the unstable markets lately.

The algorithm is most focused now on retail, copper and volatility. For the bulls to confirm this move, they need one of three things to happen; either RTH moves above 107.50, now at 107.06; or JJC moves above 54.60, now at 54.24; or VIX moves below 17.93, now at 18.11. If any of these occur, the bull move today is real, if two or all three occur, the bulls will be stampeding higher.  If none of the above three limits are reached, this move up in the broad markets will not mean anything ahead of the European news tonight.

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/21/11; 9:30 AM EST = -28; signal line is -28

6/19/11; 7:00 PM EST = -42; signal line is -28

6/17/11; 12:17 AM EST = -42

6/17/11; 11:12 AM EST = -28; signal line is -27

6/17/11; 11:02 AM EST = -42

6/17/11; 10:47 AM EST = -28; signal line is -26

6/17/11; 10:23 AM EST = -42

6/17/11; 10:00 AM EST = -28; signal line is -25

6/17/11; 9:32 AM EST = -28

6/16/11; 9:00 AM EST = -42

6/15/11; 11:38 AM EST = -42

6/15/11; 11:31 AM EST = -28

6/15/11; 11:20 AM EST = -12; signal line is -23 but algorithm says stay short

6/14/11; 9:30 AM EST = -28; signal line is -24

6/13/11; 3:35 PM EST = -42

6/13/11; 1:59 PM EST = -28; signal line is -23

6/13/11; 11:51 AM EST = -42

6/12/11; 7:00 PM EST = -28

6/10/11; 1:54 PM EST = -28; signal line is -21

6/10/11; 1:45 PM EST = -42

6/10/11; 10:06 AM EST = -28; signal line is -18; go short 1277; (Benchmark SPX for 2011=+1.5%)(Keybot this trade=-1.0%; Keybot for 2011=+5.4%)(Actual this trade via DIA=-1.1%; Actual for 2011=-0.1%)