STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long after the pre-scheduled number prints this evening with no change for the algo number but another tick higher occurs for the signal line.  Keybot remains on the edge of going short but today's market negativity did not offer a firm direction for bears.  The SPX broke thru the 1373 level so 1377 R was tested, where the SPX fell on its sword, and rolled over. The 1365 level broke in the final hour, which is what the bears needed to create a thrust move lower, but afer a few minutes, the SPX popped back above.

Watch the VIX 23 level and higher to indicate serious market bearishness. The VIX closed one penny above its 20-day MA at 18.42 which is a bullish development for VIX, bearish for markets.  Use the VIX 20-day MA as a gauge for markets tomorrow, above 18.42 and market bears are happy, below 18.42 and market bulls are regaining market control, under 18 and bulls place their feet back up on the desk, and light a cigar. Watch commodities, CRB, the 313 level, now at 321.  Remember when CRB was important a week or two ago, then it broke out to the upside signaling more bullish upside? Well time to start watching CRB again, especially in light of the dollar bounce today. The CRB under 313 signals major market trouble and would likely lead to Keybot going short.

For the SPX for Thursday, starting at 1365, the market bears have the ball, do they fumble or start driving markets lower? The bears need to push the SPX only two points lower to lose the 1364 handle, if so, the bears are going to be exploring lower market levels in short order. The SPX would quickly test the 10-day MA at 1362-ish and likely fail. The bulls need to recover today's drop and then some, to touch the 1378 level, about 12 points higher, to regain control. A move thru 1365-1377 is sideways action. Listen for the China PMI numbers which will effect copper and commodities markets. The market instabilty highlighted each day here finally started to show its ugly face today.  Stay on guard.

3/4/12; 7:00 PM EST =

2/29/12; 7:00 PM EST EOM = +76; signal line is +65

2/28/12; 10:00 AM = +76; signal line is +64

2/26/12; 7:00 PM EST = +76; signal line is +63

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo idled along calmly today after the 10 AM number without printing any activity. The SPX closed above the intraday 2011 high of 1370.58, a big feather in the bull's cap. Of interest is that the breach of 1272 should have catapulted the SPX towards 1377 R but instead it barely had the gas to move thru 1373 before pulling back.

What a rally, from SPX 1200 to SPX 1372, let's call it 175 points, since mid-December, eleven weeks.  That is 16 spoo points per week, week after week, from December thru almost March. Very impressive and the market bulls must be given their due. The major sectors remain bullish, sans trannies, and volatility remains low. The driver overnight tonight is the LTRO2 news, tentatively hitting the futures markets at 5 AM EST, about ten hours away as this is written.

If the SPX, starting at 1372, gains one point and stays above 1373 for five or ten minutes tomorrow, the bulls will launch another upside run, attacking the 1377 R. The market bears need to drop under the 1365 handle to ignite the short side. A move thru 1366-1372 is sideways action. Note that with the LTRO2 news known in the morning before the U.S. open, the fate of the markets will likely be decided before the bell rings.

The bulls remain in control.  Watch RTH 39 and XLF 14.40 but the bulls are comfortably cruising well above these critical levels. Perhaps GS's announcement that it received a Wells Notice will weaken financials.  Markets remain highly unstable and appear frothy but Keybot remains long.  Trading tomorrow and Thursday may prove quite dramatic.

3/4/12; 7:00 PM EST =

2/29/12; 7:00 PM EST EOM =

2/28/12; 10:00 AM = +76; signal line is +64

2/26/12; 7:00 PM EST = +76; signal line is +63

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  The pre-scheduled number prints without changing the algo number but the signal line increases by one.  As the signal line continues to move higher, this actually favors bears since it makes the flip to the short side, whenever it decides to come, easier.  For now, the bulls are cruising along without a worry or care. Oddly, however, the SPX has not yet launched a stab at the 1372 level to ignite a new bull run. Watch 1372.

The sectors remain elevated favoring the bulls.  VIX is printing 18.09 not yet able to overcome the 20-day MA at 18.5-ish so the bulls have their feet up on the desk lighting cigars. Do not be fooled, however, caution is required, markets are very unstable currently. The LTRO2 news within the next 24 hours will dictate market action.

3/4/12; 7:00 PM EST =

2/29/12; 7:00 PM EST EOM =

2/28/12; 10:00 AM = +76; signal line is +64

2/26/12; 7:00 PM EST = +76; signal line is +63

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo idled along yesterday without printing any numbers. The drop in the indexes after the open did not impress Keybot; the majority of market sectors remain elevated. The algorithm is currently watching the following levels for several key sectors so pay attention to these numbers; SOX 412, RTH 39, XLF 14.40 and JJC 48.50. Volatility, VIX, requires close watching as well. VIX closed above 18 yesterday. Today will be a resumption of the fight for the 20-day MA at 18.54. Market bears win if the VIX moves above 18.54 while bulls stay in control under 18.54. Even if the VIX moves above 18.54, bulls will only develop serious concern if VIX 23 is taken out.

Thus, the bulls are at cruise altitude as they try to burn off negative energy by moving the markets sideways.  For the SPX starting at 1368 today, the bulls need to touch 1372, if so, the bulls will enjoy an upside acceleration.  The price behavior at the 2011 intraday high at 1370.58 is important.  Futures project about a six point gain at the open currently, which easily overcomes 1372, so the bulls appear in good shape, but the U.S. open remains over four hours away.

Keybot prints a pre-scheduled number at 10 AM and this is expected to be a market pivot point, thus, if markets are up going into 10 AM a reversal may occur, or visa versa. The broad markets can be reassessed at that time. The market bears need to push the SPX down to lose the 1355 handle, which was yesterday's low support test, if they want to ignite negativity. A move thru 1356-1370 is sideways action.

3/4/12; 7:00 PM EST =

2/29/12; 7:00 PM EST EOM =

2/28/12; 10:00 AM =

2/26/12; 7:00 PM EST = +76; signal line is +63

2/24/12; 3:05 PM EST = +76; signal line is +62

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to start the new trading week.  The algo is monitoring the retail sector closely as the week begins.  If RTH falls under 39, now at 39.63, the broad markets will be in trouble.  The financials may be effected this week by the LTRO and Fed news. If XLF drops under 14.20, now at 14.67, the broad markets will be in trouble.  The utilities, UTIL, that was so much a focus last week, favors the bulls this week, at least at the start, since UTIL 442 must be maintianed to keep the markets buoyant and UTIL is comfortably eleven handles higher.  Of interest, however, is that the utes have logged three weekly downtrend weeks over the last four weeks which is very bearish for markets moving forward. Thus, UTIL 442 must be watched and a big win will occur for bulls if the new week ends on Friday with UTIL remaining above 442.

For the SPX starting at 1366, the market bulls only have to touch 1369, if so, another bull run higher is on tap.  SPX 1370.58, the intraday high from 2011, will then be tested, then 1377 if the 1370.58 R fails.  The market bears need to push back under the 2011 closing high at 1363.61 to accelerate the negativity.  A move thru 1365-1367 is sideways action.  Since the projected range for Monday is tight, one side will win, likely determined by the move up thru 1369.00, or, down thru 1363.61.

Markets remain unstable and require close attention. Two pre-scheduled numbers occur this week for the quant, one on Tuesday morning and the other on Wednesday evening.

3/4/12; 7:00 PM EST =

2/29/12; 7:00 PM EST EOM =

2/28/12; 10:00 AM =

2/26/12; 7:00 PM EST = +76; signal line is +63

2/24/12; 3:05 PM EST = +76; signal line is +62

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  Friday offered up some excitement with the algorithm moving itself into position to go short but the proper signals would not line up to allow the quant to commit.  Thus, the algorithm number is now back above the signal line allowing the bulls to breathe a little easier over the weekend.

The utilities provided high drama last week.  This drama will subside unless UTIL moves down towards 442, but with price eleven handles above at 453, the bulls appear to have wrestled back temporary control.  The algo is constantly scanning sectors and identifies the most pertinent sectors affecting broad market direction. The retail sector, RTH, is becoming more important to the quant each day, so keep an eye on RTH 39 next week.  The algo prints out the pre-scheduled number tomorrow so at that time we can set things up for the Monday trade. Markets are not to be trusted currently, expect the unexpected.

2/26/12; 7:00 PM EST =

2/24/12; 3:05 PM EST = +76; signal line is +62

2/24/12; 2:30 PM EST = +60; signal line is +62 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long.  The algo prints two more numbers this afternoon, six in all today, signaling a preference to flip short but now content with staying in the bull camp once again.

2/26/12; 7:00 PM EST =

2/24/12; 3:05 PM EST = +76; signal line is +62

2/24/12; 2:30 PM EST = +60; signal line is +62 but algorithm says stay long

2/24/12; 11:41 AM EST = +76; signal line is +62

2/24/12; 11:16 AM EST = +60; signal line is +61 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  The bulls pushed the utilities higher, UTIL up and over 454 now, to boost the SPX thru 1368 R, and are looking very strong again.  UTIL 452.91 will remain important into the close. SPX 1368 now becomes support and 1370.58 is then next overhead resistance. Bulls dodged a bullet again, for now. Lots of trading remaining for today.

2/26/12; 7:00 PM EST =

2/24/12; 11:41 AM EST = +76; signal line is +62

2/24/12; 11:16 AM EST = +60; signal line is +61 but algorithm says stay long

2/24/12; 10:47 AM EST = +76; signal line is +61

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long but on the very edge of flipping short.  The algo number is now under the signal line triggering the quant to go short but there are other internal programming rules that must also be satisfied to allow the signal to follow thru.  Just when you think the day will be quiet, Keybot roars to life printing two numbers and now more firmly moves towards the short side.  Looking at the program internals, Keybot will probably flip short if you see the SPX move down to 1352-ish today. This target is about 15 handles lower from the current print so it is a formidable goal for bears today but it is within possibility. This is very interesting market behavior currently, watch UTIL 452.91 for more drama as the day moves along.  This afternoon may be a wild ride for the broad indexes. Markets are erratic and unstable, extreme caution must be exercised. A turn to the short side appears imminent for today or Monday.

2/26/12; 7:00 PM EST =

2/24/12; 11:16 AM EST = +60; signal line is +61 but algorithm says stay long

2/24/12; 10:47 AM EST = +76; signal line is +61

2/24/12; 10:00 AM EST = +60; signal line is +60 but algorithm says stay long

2/22/12; 3:26 PM EST = +60; signal line is +60 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The pre-scheduled number results in no change.  The algo remains on the verge of going short but not yet. Today the SPX would probably have to give up ten handles or more for Keybot to go short so it is looking like the algo will stay long into the weekend.  But, the quant can explode into wild action at any time and there is a long day ahead that has yet to be played out.

UTIL 452.91 remains important for today but at 4 PM today, and all next week, this value drops to 442.01 making life far easier for the market bulls.  The market bears need to see JJC 48 and/or RTH 39 to develop any downside mojo.

The SPX moved up thru the 1363.61, and touched the 1364.25, so the upside accelerated, the HOD thus far at 1366.94, a few ticks shy of 1367. The quant is increasingly focused on the retail sector, use RTH 39 as an important level to monitor now.  Reference UTIL at today's close in reference to the 442 level. Markets remain highly unstable, stay alert.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST = +60; signal line is +60 but algorithm says stay long

2/22/12; 3:26 PM EST = +60; signal line is +60 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long going into the Friday session. Today was a bull-bear standoff.  The algo was active yesterday but today simply idled along without printing any numbers. The algo is on the bull-bear line and the likely outcome will probably be determined by the bulls winning if UTIL 452.91 and higher is achieved, or, the bears winning, and Keybot perhaps flipping short, if JJC drops under 48 and heads lower.  Despite the higher finish for the broad indexes today, the weakness in the utilities sector can be viewed as very bearish for markets.

For the SPX, starting at 1363.46, only 15 measley cents under the 2011 closing high at 1363.61, the market bulls need to push the SPX up to touch 1364.25, if achieved, a bullish upside orgy will result. Since the move needed is less than a buck, the overnight futures are very important tonight.  If you see any green, the bulls are going to be in a happy mood tomorrow.  The market bears need to keep the futures red and push lower to touch 1352.25 after trading begins, if so, the downside will accelerate for the broad markets.  A move thru 1353-1363 is sideways action. 

The bull-bear standoff continues since UTIL cannot move above 352.91 and JJC cannot move below 48. The euro strength keeps the dollar low which keeps copper, JJC, elevated. In a nutshell, up euro favors the market bulls, down euro favors market bears. Markets remain unstable and complacent. Extreme caution is required. Keybot prints a pre-scheduled number tomorrow morning at 10 AM so the market action can be updated at that time.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/22/12; 3:26 PM EST = +60; signal line is +60 but algorithm says stay long

2/22/12; 3:03 PM EST = +76; signal line is +60

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long but hanging on by only a single thread. The algo was very active today printing out six numbers, the most in quite a while.  The quant keeps ratcheting the signal line higher and during the afternoon placed the aglorithm on the verge of flipping short; note that the algorithm number and signal line are both at +60.  This type of equal reading can result in a trend change but in this case two other signals in the internals of the program are holding Keybot back so the algo remains long overnight.

For tomorrow, the battle at UTIL 452.91 continues; today the utes performed many crosses and the committment either above for bulls or below for bears will show you the broad market direction.  Copper JJC 48 remains important and requires watching tomorrow.

For the SPX on Thursday, starting at 1358, if the market bears can push under 1355.50, the downside will accelerate and Keybot may potentially flip to the short side. The market bulls need to touch 1363 and the upside will accelerate into a buying frenzy as the SPX attacks the critical 1363.61 and likely pierces up and thru on its way to 1370-1371. A move thru 1357-1362 is sideways action.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/22/12; 3:26 PM EST = +60; signal line is +60 but algorithm says stay long

2/22/12; 3:03 PM EST = +76; signal line is +60

2/22/12; 2:55 PM EST = +60; signal line is +59

2/22/12; 2:15 PM EST = +76; signal line is +59

2/22/12; 1:42 PM EST = +60; signal line is +59

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long and the drama continues. The algo kicked out another number a few minutes ago, now within one point of the signal line where the quant will want to go short, but, for now, the algo remains on the bull side still yet.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/22/12; 1:42 PM EST = +60; signal line is +59

2/22/12; 1:08 PM EST = +76; signal line is +59

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  The utilities refuse to die and the bulls continually push UTIL above 452.91 which provides market buoyancy. Copper is remaining elevated so despite the drop in the SPX under 1358 today, Keybot remains long.  Note how the signal line ratchets higher on each print; this actually makes the shift to the bear side come easier, whenever it chooses to occur. UTIL 452.91 and SPX 1358 remain key today. Markets are unstable; extreme caution is warranted.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/22/12; 1:08 PM EST = +76; signal line is +59

2/21/12; 1:18 PM EST = +60; signal line is +57

2/21/12; 10:42 AM EST = +76; signal line is +57

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long, but tentatively.  The algo number is only three points above the signal line ready to go short upon further market weakness.  The week is off to an active start with Keybot printing three numbers today. If UTIL stays under 452.91 the market bears are favored.  If JJC stays above 48.00 the market bulls are favored. One of these should give way with the broad markets following along.  The weak dollar is keeping copper and commodities elevated. Thus, the bears cannot drive the markets lower unless the dollar strengthens. AAPL is also in play and if Apple rolls over, the markets will follow.

For the SPX, starting at 1362, the market bulls need to push up thru 1363.61 again, then to touch the 1368 handle if they want to reaccelerate their upside mojo.  The market bears need to lose the 1358 handle, if so, the broad markets will accelerate downward. A move thru 1359-1366 is sideways action. The close tomorrow in relation to 1363.61 remains important. If the dollar strengthens tomorrow, watch for copper weakness that may cause Keybot to flip to the short side.  Markets are highly erratic and unstable currently. Extreme caution is warranted.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/21/12; 1:18 PM EST = +60; signal line is +57

2/21/12; 10:42 AM EST = +76; signal line is +57

2/21/12; 9:48 AM EST = +60; signal line is +55

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long and coming to life this week printing another number a couple hours ago.  Note the roll over in the utilities sector and this is dragging the markets down.  The market bulls got nothing unless they can move UTIL above 452.91 and now it sits a point under.  Copper, JJC, however, continues to hold up well, thus, the weaker dollar keeps JJC and CRB elevated and thus prevents the markets from making any headway to the downside.

The algo number is now only three points away from the signal line so Keybot is coming close to switching to the short side.  Most sectors, however, remain elevated and supportive of the bulls. The market bears need to see a stronger dollar that will slap copper and commodities lower and cause the broad markets to roll over.  Otherwise, the quant idles along on the long side for now. Caution is warranted.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/21/12; 1:18 PM EST = +60; signal line is +57

2/21/12; 10:42 AM EST = +76; signal line is +57

2/21/12; 9:48 AM EST = +60; signal line is +55

2/19/12; 7:00 PM EST = +76; signal line is +55

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to start the new week of trading and active printing out two numbers for the week thus far.  The utilities sector is dancing above and below the critical 492.91 level for this week.  In a nutshell, if you are bullish, you want UTIL to get above 452.91 and stay there all week, this will provide broad market buoyancy.

If you are bearish, you want UTIL to stay under 452.91 all week long and in addition, JJC to drop under 46.90 (remember the algo is constantly calculating these numbers so they change slightly as time moves along). This action would get the bear party started.  The SPX moved up thru the 2011 closing high at 1363.61 and is now at 1366, so a test at 2011's intraday high at 1370-1371 may be on tap.

Note that the algo was actually within five points of the signal line minutes ago. Keybot is on the bull side currently but the relationship is tenuous. UTIL and JJC are key.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/21/12; 10:42 AM EST = +76; signal line is +57

2/21/12; 9:48 AM EST = +60; signal line is +55

2/19/12; 7:00 PM EST = +76; signal line is +55

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant begins the new week on Tuesday morning on the long side. The China easing news and Greece developments should boost commodities, emerging markets and equities markets higher but the US.open remains a day away, and a lot can happen over the next day.  Watch the utilities, UTIL, 452.91. The market bulls need to push above this number to sustain market upside.  Likewise, copper is important, especially in the light of the China easing. Watch JJC 47.60; the bulls need to remain above and the market bears will try to push under this level. The China triple R easing was anticipated for a month or more so it will be interesting to see how much of it was priced into markets, or not.

For the SPX, starting at 1361, the market bulls need to push thru the closing high from 2011 at 1363.61 and that would set off a firestorm of upside buying with the SPX heading higher to potentially test the 1370-1371 area, which is the intraday HOD from 2011. The market bears need to push the SPX under 1357 and the selling will noticeably increase. A move thru 1358-1362 is sideways action.

Markets remain highly unstable. If UTIL stays under 452.91 and JJC weakens, Keybot will likely flip to the short side. There is only one pre-scheduled number this week that prints on Friday morning. For now, Keybot idles along on the long side.

2/26/12; 7:00 PM EST =

2/24/12; 10:00 AM EST =

2/19/12; 7:00 PM EST = +76; signal line is +55

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is on the long side as the holiday weekend begins in the States. U.S. markets are closed on Monday with trading resuming at 9:30 AM EST on Tuesday, 2/21/12. Keybot finished the week without printing any further numbers after whipsawing back to the long side at 1 PM last Thursday. This calmness does not display the internal workings of the algorithm that are actually quite dramatic.

When trading begins on Tuesday, the utilities and copper sectors are key. Weakness in these two sectors should usher in significant broad market weakness.  The outcome of the Greece meetings this weekend and projected resolution by Monday plays a key role. The UTIL 452.91 and JJC 47.60 levels require close watching as the Tuesday bell rings. These levels as well as others can be set up after tomorrow's pre-scheduled Sunday number prints. The algo will be long to start the new week but that may change quickly depending on the developing news over the next three days.

The SPX filled the 1360 gap left behind from May 2011 but fell short of achieving a close above the 2011 closing high at 1363.61; the 1364 R held. Pay attention to 1363.61 since bells, whistles and fireworks will sound if it is touched.

2/19/12; 7:00 PM EST =

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant ends the day on the long side moving from a couple weeks of pure calmness to two turns in two days time, now back in the bull camp after the SPX triggered the 1356 level today. It would be no surprise to see the algorithm flip back to the short side tomorrow or Tuesday (U.S. stock markets are closed on Monday).

For Friday, watch UTIL 451.17, now at 452.62, tumbling into the close today. The broad indexes will weaken if UTIL falls back under the 451.17. At the 4 PM close, watch to see where UTIL finishes in reference to 452.91 since this is the number that will separate market bulls and bears for next week. Note that the current level for UTIL at 452.62 actually favors the market bears for next week (under 452.91).  Watch JJC tomorrow to see if the bulls can keep it above 47.90, likewise CRB 311.40.

For the SPX, starting at 1358, the market bulls only need one measley point, to push above 1359, and the markets will accelerate upwards, filling the 1360 gap and moving onwards to 1361 R, then 1364 R (which represents the 4/29/11 closing high), then 1365 R.  Thus, if the futures are green overnight, Friday will be a bull party into the long weekend.  The market bears will try to keep the futures red to stop the upward momo. Bears need to retrace today's move to reestablish strong negativity, a formidable task. A move thru 1343-1358 is sideways action. UTIL 451.17 should play a key role again.  Stay on guard, markets are highly unstable and erratic and can easily roll over at any time. For now, Keybot remains long.

2/19/12; 7:00 PM EST =

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

SPX Daily Chart Showing Keybot the Quant Algorithm Turns -- Bullish from 2/16/12

2/16/12: Keybot the Quant flipped to the long side at 1:10 PM at SPX 1356; for the year thus far SPX Benchmark is up 7.8%; Keybot algo is up 5.7%; Keybot actual trading is up 8.2%. Stay on guard for a whipsaw.2/14/12: Keybot the Quant flipped to the short side at 2:30 PM at SPX 1342; for the year thus far SPX Benchmark is up 6.7%; Keybot algo is up 6.7%; Keybot actual trading is up 10.2%. Stay on guard for a whipsaw.
1/1/12: The new year begins. For 2011, the SPX Benchmark is flat finishing up 0%; Keybot algo finished the year up 33%; Keybot actual trading ended the year up 37%. Keybot begins 2012 remaining long. The new year begins at SPX 1258.
12/20/11: Keybot the Quant flipped to the long side at 2:49 PM at SPX 1240; for the year thus far SPX Benchmark is down 1.4%; Keybot algo is up 31.2%; Keybot actual trading is up 35.5%. Stay on guard for a whipsaw.
12/12/11: Keybot the Quant flipped to the short side at 10:25 AM at SPX 1234; for the year thus far SPX Benchmark is down 1.9%; Keybot algo is up 31.7%; Keybot actual trading is up 37.0%. Stay on guard for a whipsaw today or tomorrow.
11/28/11: Keybot the Quant flipped to the long side at 9:52 AM at SPX 1194; for the year thus far SPX Benchmark is down 5.1%; Keybot algo is up 28.3%; Keybot actual trading is up 32.3%. Stay on guard for a whipsaw today or tomorrow.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the long side. The market bulls pushed hard with utilities today and that was the tell.  The VIX could not move above its 50-day MA, SPX:VIX ratio popped back above 68 and the SPX took out yesterday's highs.  So a whipsaw does occur with Keybot turning bullish within 48 hours of where the algo went short.  The algo program lost a percent due to the stutter step and the actual trading lost 2%.  The quant dropped down into a lower risk mode now and is trading with non-leveraged ETF's now for the next 45 days.

Keybot is long again but stay on guard since a whipsaw back to the short side may occur at anytime. The key item to watch is utilities since they provided the bull push today. The UTIL 451.17 number is important thru tomorrow and this number will ratchet up higher for next week.

Looks like 2012 is kicked off ofifcially now and running strong. The AAPL and tech strength story, and now the utes strength, is too much for market bears to overcome, but, the markets are simply one news event away from turmoil.  The caution flag remains out, these markets can flip flop again at any time.

2/19/12; 7:00 PM EST =

2/16/12; 1:10 PM EST = +76; signal line is +54; go long 1356; (Benchmark SPX for 2012  = +7.8%)(Keybot this trade = -1.0%; Keybot for 2012 = +5.7%)(Actual this trade = -2.0%; Actual for 2012 = +8.2%)

2/16/12; 10:15 AM = +76; signal line is +52 but algorithm says stay short

2/16/12; 9:00 AM = +60; signal line is +50 but algorithm says stay short

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short but the utilities explode higher today on happy earnings numbers. Keybot finally becomes active intraday again and prints a number a short time ago.  The algorithm wants to go back to the long side now, clearly evident by the +76 algo number far above the singnal line, but, other programming rules are holding the algo back.

Continue watching UTIL 451.17, see if the bulls can hold that level or higher today, or not.  Also watch JJC 47.80. The SPX punched thru 1347 R and is now attempting 1349 R. If the SPX touches 1356, Keybot will likely flip back to the long side.  If the SPX does not move above 1356 today, Keybot will likely remain short.

2/19/12; 7:00 PM EST =

2/16/12; 10:15 AM = +76; signal line is +52 but algorithm says stay short

2/16/12; 9:00 AM = +60; signal line is +50 but algorithm says stay short

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short but the pre-scheduled number printed over the last few minutes is surprising.  Note that the algo number jumped 12 points to +60 and Keybot wants to return to the long side, ten points above the signal line.  At least for today, however, the market bears will likely maintain control since other algo rules are holding Keybot back from swiching to the long side.  One key element is that the SPX will probably have to tag 1356 today for Keybot to flip long. In these markets, perhaps anything is possible.

The way the market bears can maintain contol is to slap either JJC or CRB under 48 or 311.40, respectively. Either of these will serve to place the algo back in more firm bear control.  Another exciting day is on tap. We will see if Keybot prints any numbers today, or not. The caution flag remains out, the broad indexes are in a tug-o-war. Reference the previous message for specific market levels to watch which dictate broad market direction.

2/19/12; 7:00 PM EST =

2/16/12; 9:00 AM = +60; signal line is +50 but algorithm says stay short

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short.  That is odd to say considering for the last two months each missive began with another day of Keybot remaining long.  The algo did not print any numbers today. A whipsaw did not occur which was surprising considering all the bullishness with the futures and the happy start to the session. Problems were apparent from the start for the bulls, however, with the utilities weak, volatility moving up, the SPX:VIX dropping under 68 and other indicators.  AAPL provided the buoyancy to hold the markets in check, but then once Apple rolled over, the broad markets crumbled lower.

The aglorithm came within seconds of moving back to the long side at noon time today as the SPX printed highs at 1355 and change.  Price has to maintain a level set by the algo for a set amount of minutes and Keybot came within seconds of a whipsaw before the SPX price collapsed and then fell all afternoon into the close. Truly remarkable to witness the behavior of Keybot. The robot's are smarter than the human's.

The market bulls must move UTIL, the utilities sector, above 451.17 to move the markets higher. As long as the market bears keep UTIL under 451.17, the bulls have hit a ceiling in the markets. The bears need to push either the CRB lower, thru 311.40 (now at 314.95), or the JJC lower, thru 48 (now at 48.99). A higher dollar will push the CRB and JJC lower. Watch the JJC closely since a loss of the 48 level will open up extended downside and bearish action.

For the SPX for Thursday, starting at 1343, the bears finally have some wind at their backs.  All the bears need is two and one-half points lower, to push under 1340.80, to accelerate the broad markets lower. Bulls are on their heels now so they are simply trying to stop the drop by keeping copper buoyant and the SPX above 1341.  A move thru 1342-1354 is sideways action. SPX 1337 is strong support.

A pre-scheduled number prints at 9 AM but it should not have an impact on Keybot.  Markets remain unstable, stay cautious. For now, the bears are running.  If tomorrow goes by with the quant remaining short, the bears should have legs for a few days.

2/19/12; 7:00 PM EST =

2/16/12; 9:00 AM =

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant turns to the bear side today.  The new year is now officially kicked off with Keybot performing the first trade of the year, six weeks into the year. The late day drama pushed the SPX:VIX ratio back above 68 in the final minutes favoring market bulls again. Watch to see if the ratio loses 68 tomorrow which would signal a large down day on tap.

UTIL closed at 450.32, only 85 cents under the critical 451.17 that will firmly place the market bulls back in business again. Copper, JJC, closing at 49.18, requires close watching since it is very near the 48 level that Keybot is monitoring. JJC losing 48 is very bearish for markets.  CRB is at 313.95 comfortably above 311.30 which would usher in significant market bearishness. Volatility is drifting higher. The VIX is at 19.54 and needs 25 to favor the market bears.

For the SPX for Wednesday, starting at 1350.50, the bulls only need one measley point higher, to move up and over 1351.30 and the markets will be off and running to the upside again.  The market bears need to keep the futures red and to push the SPX back down to lose the 1341 level; this would accelerate the broad market selling.  A move thru 1342-1350 is sideways action.

If Keybot touches SPX 1355.42 tomorrow, the algo will probably whipsaw back to the long side. Markets are erratic, stay on guard, the caution flag remains out. Wednesday we find out if Keybot is whipsawed, or not.

2/19/12; 7:00 PM EST =

2/16/12; 9:00 AM =

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

2/12/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long

Note Added 2/15/12 at 12:06 PM: Keybot now in the neighborhood where a whipsaw may occur, it's deciding now.

SPX Daily Chart Showing Keybot the Quant Algorithm Turns -- Bearish from 2/14/12

2/14/12: Keybot the Quant flipped to the short side at 2:30 PM at SPX 1342; for the year thus far SPX Benchmark is up 6.7%; Keybot algo is up 6.7%; Keybot actual trading is up 10.2%. Stay on guard for a whipsaw.
1/1/12: The new year begins. For 2011, the SPX Benchmark is flat finishing up 0%; Keybot algo finished the year up 33%; Keybot actual trading ended the year up 37%. Keybot begins 2012 remaining long. The new year begins at SPX 1258.
12/20/11: Keybot the Quant flipped to the long side at 2:49 PM at SPX 1240; for the year thus far SPX Benchmark is down 1.4%; Keybot algo is up 31.2%; Keybot actual trading is up 35.5%. Stay on guard for a whipsaw.
12/12/11: Keybot the Quant flipped to the short side at 10:25 AM at SPX 1234; for the year thus far SPX Benchmark is down 1.9%; Keybot algo is up 31.7%; Keybot actual trading is up 37.0%. Stay on guard for a whipsaw today or tomorrow.
11/28/11: Keybot the Quant flipped to the long side at 9:52 AM at SPX 1194; for the year thus far SPX Benchmark is down 5.1%; Keybot algo is up 28.3%; Keybot actual trading is up 32.3%. Stay on guard for a whipsaw today or tomorrow.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short at 2:30 PM EST today. The 8 week rally ends. Markets are highly unstable currently. The algorithm finally lined up to make a switch to the short side. Stay on guard for potential whipsaw today or tomorrow.

The year starts off on a high note. The Keybot program is up 7% on the year, same as the SPX Benchmark. Keybot's actual trading is up 10.2% so far this year, locking in the first profits for the year on the first trade of the year for the quant.  The algo was actually long from mid-December but a portion of the gain was placed in 2011 to keep the yearly records straight.  From SPX 1240 to 1342 is an 8% gain since December, so about 1.3% was credited to 2011 and 6.7% credited to 2012 to begin the new year. It is always nice to build up over 10% of insurance already and we are only six weeks into trading for 2012 thus far.

2/19/12; 7:00 PM EST =

2/16/12; 9:00 AM =

2/14/12; 2:30 PM EST = +48; signal line is +49; go short 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +6.7%; Keybot for 2012 = +6.7%)(Actual this trade = +10.2%; Actual for 2012 = +10.2%)

2/12/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long

2/10/12; 10:00 AM EST = +48; signal line is +49 but algorithm says stay long

2/5/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long

2/3/12; 9:00 AM EST = +48; signal line is +49 but algorithm says stay long

1/31/12; 7:00 PM EST EOM = +48; signal line is +48 but algorithm says stay long

1/31/12; 10:00 AM EST = +48; signal line is +48 but algorithm says stay long

1/30/12; 9:30 AM EST = +48; signal line is +48

1/29/12; 7:00 PM EST = +64; signal line is +47

1/27/12; 10:00 AM EST = +64; signal line is +45

1/23/12; 9:33 AM EST = +64; signal line is +43

1/23/12; 9:21 AM EST = +50; signal line is +41

1/23/12; 8:00 AM EST = +64; signal line is +40

1/22/12; 7:00 PM EST = +50; signal line is +38

1/20/12; 8:00 AM EST = +50; signal line is +36

1/19/12; 1:13 PM EST = +64; signal line is +35

1/19/12; 12:38 PM EST = +50; signal line is +34

1/19/12; 9:00 AM EST = +64; signal line is +32

1/19/12; 8:00 AM EST = +64; signal line is +31

1/18/12; 9:50 AM EST = +50; signal line is +29

1/18/12; 8:45 AM EST = +36; signal line is +26

1/18/12; 8:00 AM EST = +50; signal line is +25

1/17/12; 2:35 PM EST = +36; signal line is +23

1/17/12; 9:32 AM EST = +50; signal line is +23

1/15/12; 7:00 PM EST = +36; signal line is +22

1/13/12; 10:26 AM EST = +36; signal line is +22

1/13/12; 10:18 AM EST = +22; signal line is +21

1/13/12; 10:00 AM EST = +36; signal line is +21

1/12/12; 11:01 AM EST = +36; signal line is +21

1/11/12; 12:15 PM EST = +50; signal line is +20

1/11/12; 11:02 AM EST = +36; signal line is +20

1/11/12; 9:24 AM EST = +50; signal line is +19

1/11/12; 8:55 AM EST = +36; signal line is +17

1/10/12; 9:30 AM EST = +50; signal line is +15

1/10/12; 8:00 AM EST = +34; signal line is +14

1/9/12; 2:03 PM EST = +20; signal line is +12

1/9/12; 10:39 AM EST = +6; signal line is +12 but algorithm says stay long

1/9/12; 10:27 AM EST = +20; signal line is +12

1/8/12; 7:00 PM EST = +6; signal line is +11 but algorithm says stay long

1/6/12; 12:40 PM EST = +6; signal line is +10 but algorithm says stay long

1/6/12; 11:33 AM EST = +20; signal line is +10

1/6/12; 9:30 AM EST = +6; signal line is +8 but algorithm says stay long

1/6/12; 9:00 AM EST = +20; signal line is +7

1/5/12; 3:40 PM EST = +20; signal line is +6

1/5/12; 2:27 PM EST = +6; signal line is +5

1/5/12; 1:25 AM EST = +20; signal line is +3

1/4/12; 2:40 PM EST = +6; signal line is +1

1/4/12; 10:10 AM EST = -10; signal line is 0 but algorithm says stay long

1/4/12; 9:42 AM EST = +6; signal line is -2

1/4/12; 9:30 AM EST = -10; signal line is -3 but algorithm says stay long

1/3/12; 3:22 PM EST = +22; signal line is -4

1/3/12; 2:42 PM EST = +36; signal line is -6

1/3/12; 12:59 PM EST = +22; signal line is -8

1/3/12; 12:48 PM EST = +6; signal line is -10

1/3/12; 12:30 PM EST = +22; signal line is -11

1/3/12; 10:00 AM EST = +36; signal line is -14

1/3/12; 9:46 AM EST = +22; signal line is -16

1/3/12; 9:36 AM EST = +36; signal line is -17

1/3/12; 9:30 AM EST = +22; signal line is -19

1/1/12; 7:00 PM EST Starting 2012 Data = -10; signal line is -20

1/1/12; Begin 2012 Data Set = -10; signal line is -20; go long 1258; (Benchmark SPX for 2012  = 0%)(Keybot this trade = 0%; Keybot for 2012 = 0%)(Actual this trade = 0%; Actual for 2012 = 0%)

Keybot the Quant Begins 2012 on the Long Side from SPX 1258.


Note Added 2/14/12 at 5:21 PM:  Lots of high drama today.  Markets deteriorated after 2 PM today on news that the Greece talks were in trouble and the Euro finance ministers cancelled tomorrow's meeting.  In the final half hour of trading the news reversed with word that the Euro leaders will support the Greece resolution. The SPX jumped from 1341 to end the day at 1350.50. The broad indexes were purely news driven for this afternoon. Thus, Keybot is already 8 handles the wrong way on the short trade put on today, but, with 7% to start the year for the algorithm program itself, and over 10% for the actual trading so far, a give back of a couple percent is not biggie, if a whipsaw occurs tomorrow. Keybot will probably flip back to the long side if the SPX moves back above 1355, but, time is needed for the smoke to clear, before setting up tomorrow's action and looking at the levels that Keybot is now scanning.  For now, Keybot has joined the market bears, ending a two-month bull run, taking profits.

STOCK MARKET BULLISH -- LONG --CAUTION

Keybot the Quant remains long for eight weeks straight now, since mid-December. The robot moved from sometimes chaotic hyper daily activity, with as many as a dozen numbers printing out in any given day, in the Fall, to now a calm, steady-eddy two-month bull run. Those of you watching yesterday witnessed the high drama play out with the bulls and bears fighting over UTIL 451.17, and the market bears won out as the Monday session finished. The algo idled along sideways and did not print any numbers.

Moody's rating agency downgraded Italy, Portugal and Spain last evening so Asia stocks were lower on reduced growth prospects. This sets up the potential for exciting action in the commodites and copper markets today; two key areas that Keybot is now fixated on. For today, UTIL 451.17, CRB 311.20, JJC 48 and VIX 25 all figure prominently. Note that Keybot ratcheted up the CRB number again, and the VIX down, which actually makes these threshholds easier to cross for the market bears; the quant is constantly recalculating hte trigger targets. Utilities are currently creating market bearishness, but the commodites, copper and volatility (that remains low relatively) are currently keeping markets on the bullish side. 

For the SPX, starting at 1352, if the market bulls can push up and touch 1353.50, the upside will accelerate and the never-ending bull market will continue higher. The market bears need to lose the 1343 handle to return the markets to accelerated downside negativity.  A move thru 1344-1352 is sideways action. S&P futures at this writing show the SPX wants to begin the day about two points higher, which sets up drama at the 1353-1354 level at the bell, but the open is four hours away.  Markets remain extremely unstable and erratic.  Keybot is chomping at the bit to go short, and the algorithm is positioned to go short as soon as a few additional internals signals line up, but, for now, the algo remains on the long side. Commodities and copper are very important today. 

2/19/12; 7:00 PM EST =

2/16/12; 9:00 AM =

2/12/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long

2/10/12; 10:00 AM EST = +48; signal line is +49 but algorithm says stay long