STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The RTH flips into the bullish camp this afternoon creating market buoyancy. Overall today, the SPX continues to drift sideways.

11/1/12; 10:00 AM EST =

10/31/12; 7:00 PM EST EOM =

10/31/12; 2:04 PM EST = +1; signal line is +26

10/31/12; 10:40 AM EST = -15; signal line is +28

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short and is active to start the week printing another number. RTH gave up the ghost only staying above 44.47 for the first hour of trading.  GTX is at 4880.  Keybot now says to watch 4920, so the bulls need 40 points to create a positive influence on markets, otherwise, the bearish pall remains in place.  The SPX is sideways thru 1409-1413. The bears need to see 1403 to accelerate the downside.

11/1/12; 10:00 AM EST =

10/31/12; 7:00 PM EST EOM =

10/31/12; 10:40 AM EST = -15; signal line is +28

10/31/12; 9:30 AM EST = +1; signal line is +30

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the new trading week finally begins. The algo number clicked higher as soon as the bell rang. RTH is a few pennies above 44.47, now printing 44.55, so watch this today. If you see RTH drop back under 44.47 the broad indexes will noticeably weaken.  The commodites, GTX, remain under 4895 and continue to provide a negative influence on markets. The SPX has teased 1417 twice so far but the bulls cannot hold it.

11/4/12; 7:00 PM EST =

11/2/12; 9:00 AM EST =

11/1/12; 10:00 AM EST =

10/31/12; 7:00 PM EST EOM =

10/31/12; 9:30 AM EST = +1; signal line is +30

10/28/12; 7:00 PM EST = -15; signal line is +32

U.S. Markets Remain Closed Due to Hurricane Sandy

The U.S. markets remain closed today, Tuesday. It is important for markets to open tomorrow, even if only for a couple hours, since funds need the EOM prints, as well as end-of-fiscal-year prints for some funds, for accounting purposes. Futures markets continue to trade but on thin volume. Thus, it is anticipated that trading should resume for Wednesday even if it is an abbreviated session. The pre-scheduled number for 10 AM EST today is tentatively rescheduled to now print on Thursday at 10 AM. The waiting game continues.  The parameters listed in the previous post remain in place once trading does resume. Millions of people are experiencing power outages across New York and the East Coast.

Note Added 10/31/12 at 4:14 AM EST:  U.S. markets are scheduled for a normal operating day today and opening at 9:30 AM EST.  Volume should be light, with volatility elevated, so the price movement may become dramatic today. This will be the first trading day this week for the SPX. The S&P futures are up 9.

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short to start the new week of trading.  The Sunday pre-scheduled number results in a two-point drop to the signal line but the bears maintain a 47-point spread before the bulls can regain control of the markets. Three pre-scheduled numbers print this week; Tuesday morning, Wednesday evening and Friday morning. Very simply, the bulls need to see RTH 44.47 and/or GTX 4895 to lock in an upside recovery rally that will overtake SPX 1419, 1424 and higher. The bears need to push the XLF under 15.60 and the markets will take another leg lower with the SPX dropping well under 1400.

For the SPX for Monday, starting at 1412, the bulls need to touch the 1417 handle and hold it a few minutes, if so, an upside recovery rally is in play with the SPX accelerating several handles higher likely testing 1424 resistance in quick order.  If the bears continue to apply pressure and push the SPX under 1403, markets will accelerate to the downside targeting the 1391-1397 support area in short order.  A move thru 1404-1416 is sideways action. Stay alert. A market recovery rally is in play now that the SPX has fallen from over 1460 down to test 1403 in only seven days time, a drop of -3.9%. If the bulls mount a recovery rally the importance of the 1434 resistance level cannot be understated.

11/4/12; 7:00 PM EST =

11/2/12; 9:00 AM EST =

10/31/12; 7:00 PM EST EOM =

10/30/12; 10:00 AM EST =

10/28/12; 7:00 PM EST = -15; signal line is +32

10/26/12; 10:00 AM EST = -15; signal line is +34

Note Added 10/30/12 at 6:00 AM EST:  U.S. markets were closed to trading on Monday and will remain closed thru Tuesday.

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short into the weekend.  The markets moved sideways yesterday teasing the SPX 1403 support for an instant but bouncing. The XLF came down for a LOD at 15.69 very close to the 15.60 which would cause the markets to drop another leg lower.  The SPX would drop under 1400 if XLF fails.  For the utilities, that continue to lead the broad markets lower for the last three months, UTIL is firmly bearish at 475, well under the 489.34 number of interest for all next week. UTIL 465 (50-week MA) represents a trap-door for the broad indexes where the markets will typically go into free fall should it occur.

On the bull side, the RTH pushed up into the 44.40's teasing the 44.47 number the bulls need to stop the recent downside, but the bulls did not have enough oomph.   Likewise, the bulls could not bring the GTX (commodities) above the 4895 level to lock in a rally. Next week's levels of interest and SPX levels for Monday can be set up once the Sunday number prints tomorrow.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST = -15; signal line is +34

10/25/12; 9:43 AM EST = -16; signal line is +37

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The pre-scheduled number results in a one-point increase in the algo number and three-point drop in the signal line but there remains a 49 point difference between the two numbers keeping the market bears firmly in charge.  RTH is 44.24, bearish.  GTX is 4854, bearish. XLF is leaking lower now printing 15.78 still in the bull camp.  For the SPX today, the bulls need to touch the 1421 level to trigger an upside acceleration.  The bears need to drop under 1405 to trigger a downside acceleration. A move thru 1406-1420 is sideways action today.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST = -15; signal line is +34

10/25/12; 9:43 AM EST = -16; signal line is +37

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish. The algo printed a couple of numbers after the opening bell yesterday. Continue watching RTH 44.47 (now bearish), GTX 4895 (now bearish) and XLF 15.60 (one of the last major sectors remaining bullish). Bulls need the RTH and GTX to move higher while bears want the financial sector to fail next. S&P futures are down 10 due to disappointing AMZN and AAPL earnings.  Keybot prints a pre-scheduled number at 10 AM this morning so the market action can be updated at that time. 

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/25/12; 9:43 AM EST = -16; signal line is +37

10/25/12; 9:30 AM EST = +0; signal line is +39

10/23/12; 3:31 PM EST = -16; signal line is +41

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short motoring along all day without printing any numbers. The RTH did not move above 44.47 after the opening bell, preferring the bear camp instead and remaining there all day long leaking lower into the closing bell.  The GTX remains under 4895 as well so the bears are on easy street. The bulls need to overcome one of those levels to move the markets higher.  Another down leg will occur in the markets if the XLF falls under 15.60, now at 15.84. As mentioned over the last few weeks, the utilities sector topping in late July and leading the broad markets lower is ominous.  UTIL is at 474 and had a 473 handle today.  Remember, the 50-week MA, now at 465.05, represents a trap-door for the broad indexes. If UTIL loses nine points and falls thru 465, it is very likely that the broad indexes will go into free fall in very short order. Thus, lots of potential excitement is ahead.

For the SPX starting at 1409, the bulls need to touch the 1420 handle to create an upside acceleration. The bears have an easy road to hoe only needing to drop under 1407, less than two points lower, to create a downside acceleration.  A move thru 1408-1419 is sideways action. The bears are cruising along.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/23/12; 3:31 PM EST = -16; signal line is +41

10/23/12; 2:39 PM EST = +0; signal line is +44

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The algo is increasing in activity printing two numbers in the afternoon.  Watch RTH 44.47. This is a two-penny change from yesterday's level of interest. RTH closed at 44.46 only one penny on the bear side. Markets will rally if RTH moves above 44.47 but will remain weak below 44.47.  Watch GTX 4895.  The bulls will move markets higher if GTX regains 4895. For the SPX at 1413, the bulls need to touch the 1434 handle to create an upside thrust.  The bears need to push the SPX under 1408 to accelerate the downside.   A move thru 1409-1432 is sideways action. The bears are in full control with no worries. 

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/23/12; 3:31 PM EST = -16; signal line is +41

10/23/12; 2:39 PM EST = +0; signal line is +44

10/23/12; 9:30 AM EST = -16; signal line is +46

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. Commodities and retail gave up the ghost at the open.  The algo number plummets thirty points lower. The bears are cruising.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/23/12; 9:30 AM EST = -16; signal line is +46

10/22/12; 9:30 AM EST = +14; signal line is +49

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The algo did not print any additional numbers today after the opening bell number. Keybot is tracking six sectors currently.  Utilities, semiconductors, copper and volatility are in the bear camp causing negativity. Retail and commodities are in the bull camp causing positivity. Semi's and copper are firmly bearish so set them on the back burner.  Watch UTIL 485.67, VIX 16.10, RTH 44.45 and GTX 4899.  $GTX is the GS Commodities Index.  The bulls need UTIL to move above 485.67 or VIX to move under 16.10.  The bears need RTH to move below 44.45 or GTX below 4899. If all four remain as is, the markets will move sideways, otherwise, the broad indexes will move in the direction as dictated by any change to the four parameters listed.

For the SPX starting at 1434, the 50-day MA, the bulls need less than two points higher, to punch up thru 1435.50 and it will be off to the races higher, a test of 1440-1442 occurring in short order.  The bears need to drop under 1422 to accelerate the downside into the 1403-1419 support zone.  A move thru 1423-1434 is sideways action. The bears are in control. VIX 16.10 and RTH 44.45 are especially important on Tuesday.  AAPL kept the bulls in the game today. The iPad Mini announcement is tomorrow. Watch AAPL closely.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/22/12; 9:30 AM EST = +14; signal line is +49

10/21/12; 7:00 PM EST = +30; signal line is +52

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short and note that after these many weeks of sideways action, the caution flag is now removed. The bears are cruising. The utilities sector moves lower; UTIL at 480.75 well under 485.67.  Copper remains lower and volatility higher.  The algo is now locking on to retail, the RTH, and tracking 44.45. RTH is now printing 44.57 only 12 pennies away. The broad indexes will take a strong leg lower if the RTH 44.45 is lost. The commodities sector is coming back in play as well. The SPX is testing the 1430 level right now, failure would lead to a test of 1424 in short order.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/22/12; 9:30 AM EST = +14; signal line is +49

10/21/12; 7:00 PM EST = +30; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the new week of trading. The semiconductors went over the falls on Friday and reinforced a strong bearish stance.  The three sectors the algo is tracking right now are copper, volatilty and utilities.  Watch JJC 46.33, now at 45.98 contributing bearishly to markets. Watch VIX 16.30, now at 17.06. As long as JJC remains under 46.33 and VIX over 16.30, the broad indexes will remain weak. Watch UTIL 485.67 which is a number that will stay in place all week long. UTIL is 483.76 which is on the bearish side so at the opening bell, Keybot will actually click lower than it is now, forecasting move market bearishness ahead.  Watch this as a significant market direction tool for Monday.  If UTIL stays under 485.67, it does not matter what the broad indexes are doing, they will weaken.  Conversely, if UTIL moves above 485.67, the recovery rally bounce will be confirmed for markets.

For the SPX beginning on top of strong support and the 50-day MA at 1433, the bears only need three negative points, to push down thru 1430, and the market downside will accelerate. The bulls are simply trying to stop the bleeding and their first step will be to push UTIL above 485.67.  A move thru SPX 1431-1456 is sideways action for Monday.  Remain cautious. Europe news will move markets sharply. CAT earnings will set the tone for trading.  If UTIL remains under 485.67, the caution flag will probably be removed since the bears will be on cruise control. Keybot prints one pre-scheduled number this week on Friday morning.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/21/12; 7:00 PM EST = +30; signal line is +52

10/19/12; 12:15 PM EST = +30; signal line is +53

10/19/12; 11:49 AM EST = +44; signal line is +55; go short 1442; (Benchmark SPX for 2012 = +14.6%)(Keybot this trade = -0.3%; Keybot for 2012 = +15.3%)(Actual this trade = -0.7%; Actual for 2012 = +8.6%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short into the weekend. The markets suffered significant technical damage today and it gets worse come Monday's opening bell.  UTIL closed under 485.67 so the algo will take another dip lower once the Monday bell rings to start a new week of trading. The bears are in full control of the markets. When Keybot takes another step lower at Monday's open, as long as the other sectors such as volatility stays higher, and copper stays lower, the caution flag may be removed since the bears will be on cruise control. The Sunday night futures will be interesting. The road map for next week including sectors and levels of interest can be provided after the Sunday pre-scheduled number prints.

10/21/12; 7:00 PM EST =

10/19/12; 12:15 PM EST = +30; signal line is +53

SPX Daily Chart Shows Keybot the Quant Algorithm Turns

Current signal remains valid until a change occurs.
10/19/12: Keybot the Quant flipped to the short side at 11:49 AM EST at SPX 1442; for the year thus far, SPX Benchmark is up 14.6%; Keybot is up 15.3%; Keybot actual trading is up 8.6%. Stay alert for a whipsaw.
10/16/12: Keybot the Quant flipped to the long side at 9:31 AM EST at SPX 1446; for the year thus far, SPX Benchmark is up 14.9%; Keybot is up 15.6%; Keybot actual trading is up 9.3%.
10/9/12: Keybot the Quant flipped to the short side at 10:42 AM EST at SPX 1452; for the year thus far, SPX Benchmark is up 15.4%; Keybot is up 15.2%; Keybot actual trading is up 8.8%.
10/1/12: Keybot the Quant flipped to the long side at 10:00 AM EST at SPX 1453; for the year thus far, SPX Benchmark is up 15.5%; Keybot is up 15.3%; Keybot actual trading is up 8.9%. 9/17/12: Keybot the Quant flipped to the short side at 2:11 PM EST at SPX 1460; for the year thus far, SPX Benchmark is up 16.1%; Keybot is up 14.7%; Keybot actual trading is up 7.7%.
9/4/12: Keybot the Quant flipped to the long side at 2:13 PM EST at SPX 1402; for the year thus far SPX Benchmark is up 11.5%; Keybot is up 10.6%; Keybot actual trading is up 3.5%.
9/4/12: Keybot the Quant flipped to the short side at 10:34 AM EST at SPX 1399; for the year thus far SPX Benchmark is up 11.2%; Keybot is up 10.8%; Keybot actual trading is up 3.8%.
8/3/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1377; for the year thus far SPX Benchmark is up 9.5%; Keybot algo is up 9.2%; Keybot actual trading is up 2.5%.
8/2/12: Keybot the Quant flipped to the short side at 11:42 AM EST at SPX 1360; for th eyear thus far SPX Benchmark is up 8.1%; Keybot algo is up 10.4%; Keybot actual trading is up 5.8%.
7/26/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1349; for the year thus far SPX Benchmark is up 7.2%; Keybot algo is up 9.6%; Keybot actual trading is up 5.4%.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the session moves along. VIX has moved above the 16.30 level the algo is now tracking.  The JJC level of interest is at 46.33 so watch that closely.  UTIL fell below 485.67 so pay attention to that at the closing bell. The algo prints another number, now dropping to +30. The bears are driving the bus.

10/21/12; 7:00 PM EST =

10/19/12; 12:15 PM EST = +30; signal line is +53

10/19/12; 11:49 AM EST = +44; signal line is +55; go short 1442; (Benchmark SPX for 2012 = +14.6%)(Keybot this trade = -0.3%; Keybot for 2012 = +15.3%)(Actual this trade = -0.7%; Actual for 2012 = +8.6%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 1442 a short time ago.  Copper is collapsing today with JJC failing the 46.33 level.  VIX is now poking up thru its bull-bear line.  Watch UTIL 485.67 at the close. Watch JJC 46.33 closely the remainder of the day. SOX has collapsed today on the bad chip and tech news. The last trade was flat for the program but the actual trading gave up 0.7%. Keybot flipped from SSO into SDS.  As always stay alert for a whipsaw.

10/21/12; 7:00 PM EST =

10/19/12; 11:49 AM EST = +44; signal line is +55; go short 1442; (Benchmark SPX for 2012 = +14.6%)(Keybot this trade = -0.3%; Keybot for 2012 = +15.3%)(Actual this trade = -0.7%; Actual for 2012 = +8.6%)

10/19/12; 11:33 AM EST = +44; signal line is +56 but algorithm says stay long

10/17/12; 9:00 AM EST = +60; signal line is +57

10/16/12; 9:31 AM EST = +60; signal line is +56; go long 1446; (Benchmark SPX for 2012 = +14.9%)(Keybot this trade = +0.4%; Keybot for 2012 = +15.6%)(Actual this trade = +0.5%; Actual for 2012 = +9.3%)

STOCK MARKET BULLISH - -LONG -- CAUTION

Keybot the Quant is long going into the Friday session.  The move higher in the utilities sector with UTIL now over 487 places this sector firmly in the bull camp and contributing bullishly to markets. The quant will be tracking UTIL 485.67 all next week so pay attention to this number today, especially at the close. If UTIL ends today under 485.67, that is bearish for markets next week, if UTIL remains above 485.67 at 4 PM EST today, that is a feather in the bulls cap for next week.

Since the bulls have taken back the utes, the algo is now more focused on copper and volatility. At the same time, semiconductors, SOX, is the only sector that is contributing negatively to markets. Thus, focusing on these three characters, the bulls will be happy if the SOX moves above 386. This would pave the way to SPX 1500.  The weakness in chip earnings, as well as the GOOG debacle yesterday, however, will actually serve to hold the SOX down.  The bears need to move JJC under 46.40, or, the VIX above 16.40, to ignite bearish negativity in the markets. If JJC stays above 46.40, and VIX below 16.40, and SOX below 386, that is status quo, and the broad indexes will continue stumbling sideways. Note the serious copper weakness today, currently down about 1.3%, which would place JJC down around 46.70 at the open, above the critical 46.40, but nearing this danger line. If JJC drops under 46.40 and the SPX drops under, say, 1452.50, Keybot will likely flip to the short side.

For the SPX today starting at 1457, the bulls need seven points higher, to touch the 1464 handle, and this will create an upside acceleration thru the closing high this year at 1465.77 and up to test 1468, perhaps 1472.  The bears need to push the SPX five points lower, to move under 1453, if so, the markets will accelerate lower.  A move thru 1454-1463 is sideways action. Stay alert and cautious. Markets remain highly unstable.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST = +60; signal line is +57

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into the Thursday session. The algo did not print any numbers during yesterday's trading session.  The utilities sector exploded higher with UTIL closing at 485.85. The bull-bear line of interest this week is 478.43 so the bulls are handily above. More importantly, as mentioned on the weekend, the number for all next week is 485.67. Thus, UTIL has now recovered and is above the number it needs for next week to contribute bullishly to markets. This development strongly encourages the bulls. The week is far from over. Watch the UTIL 485.67 very closely into the Friday close.

In three short days the bulls have turned gloom into happiness. China GDP drops for the seventh quarter in a row last night but beat estimates. Copper is flat so the affect on JJC may be muted.  The bulls are driving the bus and it appears the best chance for bears is to push JJC under 46.30, or RTH under 44.45, or VIX above 16.50. Otherwise, the bulls remain in control. In addition, the only negative sector is semiconductors so if the bulls push SOX above 386 (now at 379.41), this will verify an extended bull rally that will send the SPX above the highs for the year in the days ahead.  If SOX stays under 386, the market bears remain in the game waiting for their chance.

For the SPX today starting at 1461, the bulls are once again in the driver's seat to start the day only needing a single point higher at the open, to punch up thru 1462 and an upside acceleration will occur which will test this year's closing high at 1465.77.  The bears need to push under 1453 to initiate a downside acceleration. A move thru 1454-1461 is sideways action. Focus on UTIL 485.67 and SOX 386. Remain cautious.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST = +60; signal line is +57

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long heading into Wednesday. The pre-scheduled number this morning results in a one tick change for the signal line which now creates only a three point difference between the algo number and signal line, proof positive how this is an ongoing knock-down, drag-out bull-bear struggle each day. UTIL 478.43 is very important as well as the other sectors described in the previous post.  The futures are up so the bulls may run the SPX to 1457 and 1460 after the open. Remain extremely cautious. The markets are unstable and not to be trusted.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST = +60; signal line is +57

10/16/12; 9:31 AM EST = +60; signal line is +56; go long 1446; (Benchmark SPX for 2012 = +14.9%)(Keybot this trade = +0.4%; Keybot for 2012 = +15.6%)(Actual this trade = +0.5%; Actual for 2012 = +9.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into the mid-week Wednesday session. The bulls have pushed the markets 30 handles higher in only two days, retracing much of the near 50-handle drop that occurred over the previous six days; the behavior follows an approximate 62% Fibonacci retracement.  No additional numbers printed today after Keybot flipped long this morning. UTIL closed at 480.41 two points above the 478.43 danger line. Watch SOX 386, now at 380.  The SOX is the only major sector contributing bearishly to markets so the bulls need to see 386 for the broad indexes to move substantially higher. Watch VIX 16.50, JJC 46.30 and RTH 44.45 that continue along contribuiting bullishly to markets. The bears need to push thru any of the three values listed to create negativity.

For the SPX for Wednesday, starting at 1455, the bulls have the easy road once again, only needing a tiny smidge of green to show up in the futures, if so, and the SPX moves above 1455.50 after the opening bell, the markets will accelerate higher once again to 1457 and 1460.  The bears need to push under the strong support at 1440 to restart the negativity.  A move thru 1441-1454 is sideways action ahead of the European Summit on Thursday.  Keybot prints a pre-scheduled number tomorrow at 9 AM so the action can be updated at that time. The markets probably have further surprises ahead this week.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST =

10/16/12; 9:31 AM EST = +60; signal line is +56; go long 1446; (Benchmark SPX for 2012 = +14.9%)(Keybot this trade = +0.4%; Keybot for 2012 = +15.6%)(Actual this trade = +0.5%; Actual for 2012 = +9.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side after the open at SPX 1446.  The utilities bounced strongly taking out the UTIL 478.43 level which causes a leg higher for the broad indexes.  The UTIL 478.43 is applicable all week long so there is lots of drama ahead this week.  The semiconductors are the only major sector perceived to be in the bear camp by the quant.  The algo number and signal line are only four ticks away from each other so extreme caution is required moving forward.  Note that Keybot's algorithm program has now pulled ahead of the SPX Benchmark Index by one-half percent on the year. The actual trading, which accounts for all the timing issues, commissions and so forth, has gained over 9% on the year, a return anyone in the biz would welcome. Keybot closed the SDS trade and rotated into SSO. The last trade resulted in a one-half percent gain.

The quant is now fixated on utilities and semiconductors.  The markets will sustain a rally and move higher if the bulls can push the SOX up thru 386. The SOX is at 377 right now.  The bears need to push UTIL back under 478.43 to regain downside momo. If SOX stays under 386, and UTIL over 478.43, then markets travel sideways with an upward bias. As always after a turn, stay alert for a whipsaw, which would not be surprising in these jumpy markets.

10/17/12; 9:00 AM EST =

10/16/12; 9:31 AM EST = +60; signal line is +56; go long 1446; (Benchmark SPX for 2012 = +14.9%)(Keybot this trade = +0.4%; Keybot for 2012 = +15.6%)(Actual this trade = +0.5%; Actual for 2012 = +9.3%)

10/14/12; 7:00 PM EST = +44; signal line is +56

10/12/12; 10:00 AM EST = +44; signal line is +56

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is short moving into the Tuesday session. The quant did not print any numbers in the Monday session. Lots of excitement occurred, however, in the final minutes when UTIL punched above 478.43, the number the quant is tracking this week, for only a few seconds then closed below at 478.36.  Thus, the market bulls are only seven cents away from regaining control of the overall markets.  If UTIL moves above 478.43 this morning, it is highly likely that Keybot will flip to the long side.

Copper was on the verge of collapse yesterday with the JJC coming down to tease failure at 46.25-46.30 but a strong recovery bounce occurred enabling the broad indexes to move higher for the remainder of the day.  For the SPX today, starting at 1440, the bulls only need one positive point, to move above 1441 and if that holds a few minutes, an upside acceleration will occur to 1444 and 1446.  The bears need to retrace yesterday's up move and push under 1427 to ignite strong market negativity.  A move thru 1428-1440 is sideways action today. Markets remain highly unstable. In a nutshell, a makret turn appears imminent.  If UTIL moves above 478.43 and the SPX above 1441, Keybot will likely flip long. Otherwise, the bears will remain in control.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST =

10/14/12; 7:00 PM EST = +44; signal line is +56

10/12/12; 10:00 AM EST = +44; signal line is +56

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short heading into the new week of trading. The Sunday print results in no change.  Watch UTIL 478.43 this week, now bearish and creating market negativity.  Market bears should remain happy as long as UTIL is under 478.43, if it moves above, that will signal the bulls charging higher.  Watch RTH 44.40, VIX 16.90 and JJC 46.25. All three are contributing bullishly to markets but on Friday they all were showing exhaustion. Retail Sales numbers hit at 8:30 AM and will immediately impact RTH.  If RTH drops under 44.40 the markets will take another leg lower and hopes of a recovery rally will fade quickly.  Likewise, if JJC drops under 46.35. China data is important this evening since this will immediately impact copper overnight and move JJC tomorrow.  Volatility should be on the increase so pay close attention to the VIX this week. A move above 16.90 not only assures the bear path forward but the higher volatility will create large intraday market spikes, a roller coaster ride, moving forward.

For the SPX on Monday, beginning at 1429, the bears have the easier road, only needing a drop of three points, under 1425.50, to begin a downside acceleration.  The bulls need to move above 1438.50 to initiate an upside acceleration.  A move thru 1427-1437 is sideways action.  Stay alert and cautious since the bulls and bears continue to fight it out. European news will play a large role in trading this week. Keybot prints only one pre-scheduled number this week on Wednesday.

10/21/12; 7:00 PM EST =

10/17/12; 9:00 AM EST =

10/14/12; 7:00 PM EST = +44; signal line is +56

10/12/12; 10:00 AM EST = +44; signal line is +56

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short into the weekend.  UTIL fell on its sword as the day progressed and closed under the 478.43 number which is important all thru next week. Bears should maintain market control as long as UTIL is under 478.43. The utilities and semiconductor sectors is what created the move down from the market top over the last month. The retail sector may be rolling over next. Retail Sales data is released on Monday.  RTH 44.40 will have to be watched closely. Volatilty and copper will also be important. Next week's areas and levels of interest that most greatly affect market direction can be indentified tomorrow after the pre-scheduled number prints.

10/14/12; 7:00 PM EST =

10/12/12; 10:00 AM EST = +44; signal line is +56

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the Friday session is underway. The pre-scheduled number results in a one tick lower move for the signal line.  UTIL is all over the map today now trying to move up towards 480.  RTH is 44.81.  JJC is 47.22. VIX is at 15. Markets are sideways with an upward bias thus far today. Status quo so far.

10/14/12; 7:00 PM EST =

10/12/12; 10:00 AM EST = +44; signal line is +56

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the Friday session. Today saw the bulls push UTIL directly to 481.36 but price failed only three minutes later.  How does Keybot know these numbers to watch ahead of time?  The bears pushed RTH down under 44.50 at the opening bell but it quickly recovered. UTIL 481.36 remains in play for tomorrow but watch 478.43 into the closing bell. The quant will be tracking UTIL 478.43 all next week. Thus, if the bulls can close UTIL above 478.43 they will be setting up Monday for a potential move by Keybot back to the long side.  If UTIL closes below 478.43 tomorrow, the bears will remain in firm control.

Watch RTH 44.50, JJC 46.45 and VIX 16.80.  Any price move across these levels will cause the broad indexes to sell off another leg lower so the bears are focused on these three. The bulls are focused on UTIL 481.36 and 478.43 as described above.  For the SPX, starting at 1433, the bulls need to touch 1444 to launch an upside acceleration. The bears simply need to see any tinge of negativity in the overnight futures and the SPX will accelerate to the downside after the open. A move thru 1434-1442 is sideways action. Keybot prints a pre-scheduled number at 10 AM so the market action can be updated at that time. JPM and WFC earnings will set the tone pre-market and send the futures either up big, or down big. 

10/14/12; 7:00 PM EST =

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

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short into the Thursday session. The algorithm has not printed a number since the move to the short side on Tuesday morning and a whipsaw has not occurred as yet.  UTIL is three points below 481.36, a key number the quant is tracking this week, so the bears remain in good shape. The bulls need to push UTIL back above 481.36.  Watch VIX 16.90, JJC 46.35 and RTH 44.50, all three are contributing bullishly to markets. If any of the three move across the numbers shown, the broad markets will take another leg lower.

For the SPX, starting at 1433, the bears only need to drop under 1431 to create a downside acceleration that would likely test the 50-day MA at 1426 and strong support at 1424. The bulls need to push above 1442.50 which would create an upside acceleration and a chance for the bulls to push UTIL above 481.36. A move thru 1432-1441 is sideways action today. Stay alert. The four parameters listed above are determining broad market direction. At this writing, the S&P futures project a five point gain for the SPX after the U.S. opening bell in about five hours time.

10/14/12; 7:00 PM EST =

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

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as of this morning.  The weak utilities bit into the broad indexes. The quant is now tracking four key parameters; UTIL 481.36 (now bearish), VIX 16.90 (now bullish), JJC 46.35 (now bullish) and RTH 44.50 (now bullish).  Very simply, the bulls need to move UTIL above 481.36.  The bears need to either push VIX above 16.90 or JJC under 46.35 or RTH under 44.50. If two of these three fail, that will correspond to 20 handles of downside on the SPX and all three turning bearish would put the SPX in the low 1400's. The action over the coming days is important.

For the SPX, starting at 1441, closing at the lows, the bears have the advantage.  A tiny smidge of negative futures is all that is needed to initiate a downside acceleration when the opening bell rings.  The bulls need to retrace the down move today to touch 1456, a difficult task but it can happen.  This would place the bulls back in business and launch an acceleration move higher to 1460 in quick order.  A move thru 1442-1455 is sideways action. Markets remain unstable. The four parameters listed above are very important, especially UTIL 481.36. Stay alert for a potential whipsaw.

10/14/12; 7:00 PM EST =

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

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

10/8/12; 9:37 AM EST = +44; signal line is +58 but algorithm says stay long

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short at SPX 1452 at 10:42 AM. The utilities sector is moving lower and the SPX slipped on a banana peel triggering the short side for the algo. Stay alert for a potential whipsaw. The last trade lost a tiny smidge, no biggie.  Keybot rotated into SDS for the short side. The bears are now driving the bus.

10/14/12; 7:00 PM EST =

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

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

10/8/12; 9:37 AM EST = +44; signal line is +58 but algorithm says stay long

10/7/12; 7:00 PM EST = +60; signal line is +59

10/5/12; 9:00 AM EST = +60; signal line is +59

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

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

Keybot the Quant is long going into the Tuesday session. Today was all set up for the bears but they could not push price low enough for the quant to satisfy its rules and allow the change from long to short. The quant wants to go short right now since the algo number is under the signal line.  UTIL closed at 480.37.  Watch UTIL 481.36 tomorrow. In addition, the bulls need to push up thru 1461 and an upside acceleration will occur while the bears need to push under 1453 and a downside acceleration will occur. A move thru 1454-1460 is sideways action.

In a nutshell, for Tuesday, if UTIL moves above 481.36, the market bulls will rule the markets.  If UTIL remains under 481.36 and the SPX remains above 1453, the markets move sideways and Keybot likely stays long.  If UTIL remains under 481.36 and the SPX falls under 1453, Keybot will likely flip short. Tomorrow is very important. Markets are very erratic and are not to be trusted. Expect the unexpected. The bulls are hanging on by a thread and will need UTIL to move above 481.36 to regain strength, otherwise, the market weakness will continue until failure occurs.

10/14/12; 7:00 PM EST =

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

10/8/12; 9:37 AM EST = +44; signal line is +58 but algorithm says stay long

10/7/12; 7:00 PM EST = +60; signal line is +59

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

Keybot the Quant is long as the trading week begins but the weak utilities are negatively impacting the broad indexes. The quant wants to go short now but internal programming rules are holding it back still yet, despite the SPX printing under 1457.  Keybot likely wants to see the SPX stay under 1453.51 for five minutes and the algo will likely flip short. Until then the markets meander sideways. Note that the quant is back to where it started when it went long the other day at 1453. The bulls are holding on to the steering wheel but their grip is fading. Stay alert. A turn may be imminent.

10/14/12; 7:00 PM EST =

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

10/8/12; 9:37 AM EST = +44; signal line is +58 but algorithm says stay long

10/7/12; 7:00 PM EST = +60; signal line is +59

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

Keybot the Quant is long heading into the new trading week. The Sunday number results in no change.  As mentioned in the previous post, UTIL 481.36 is extremely important all this week.  Since the utilities begin the week on the bear side of this number, the markets will experience negativity.  If the SPX drops under 1457 and this holds under for about seven to ten minutes, Keybot will likely flip short.  There are other internal programming rules that the quant must satisfy but, for the most part, if 1457 fails, the bulls are in big trouble.  The bulls need to push the SPX above 1471 and an upside acceleration will occur. A move thru 1458-1469 is sideways action. If UTIL moves above 481.36 after the opening bell, the market bulls will rule. Stay alert. The first half hour of trading is important for tomorrow and the algo should be active from the start. A turn to the short side may be imminent for Keybot, UTIL 481.36 and SPX 1457 will tell you the answer on Monday morning. Keybot prints only one pre-scheduled number this week on Friday Morning.

10/14/12; 7:00 PM EST =

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

10/7/12; 7:00 PM EST = +60; signal line is +59

10/5/12; 9:00 AM EST = +60; signal line is +59

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long into the weekend.  The algo did not print any numbers on Friday after the pre-scheduled number, in fact, the algo was quiet all week after it flipped long on Monday.  UTIL dropping under 481.36 into the close is very important.  The quant is tracking UTIL 481.36 all thru next week.  The markets will sell off with UTIL under 481.36. In addition, Keybot will likely flip short if the SPX drops under 1457 on Monday.  The new week ahead can be set up after the Sunday number prints tomorrow. Watch UTIL 481.36 like a hawk, bears win below, bulls win above. A turn may be imminent come Monday.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST = +60; signal line is +59

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The pre-scheduled number results in a one tick move higher for the signal line.  The algorithm is long but do not take this for granted. There is now only one measley point difference between the quant being bullish versus bearish. The broad indexes are walking a fine line right now.  The Jobs Report results in the S&P's up about six points in front of the opening bell.  The SPX will make the run at the 1463 and higher print that will lead to an acceleration to 1468-1469. The bears must spank the price back down with all their might when it attacks 1463. Watch UTIL 481.36 today, especially in the final minutes, as discussed yesterday. A close under 481.36 sets up Monday to be bearish and a potential change of Keybot back to the short side. Stay alert. Expect the unexpected.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST = +60; signal line is +59

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long ahead of the Monthly Jobs Report which is perhaps the most important economic data release this year. UTIL is well above 472 which creates bullish markets and this number will expire tomorrow. For next week, UTIL 481.36 will be tracked by the quant. The bulls must maintain UTIL above 481.36, if it drops below it will create broad market selling.  So into the 4 PM EST close tomorrow pay attention as to where UTIL closes since this will directly affect trading at 9:30 AM Monday.

For the SPX for Friday, starting at 1461, the bulls need to push up and over 1463 to accelerate the upside and the bears need to break down thru 1451 to accelerate the downside.  A move thru 1452-1462 is sideways action. A pre-scheduled number prints at 9 AM, after the Monthly Jobs Report, so the market action can be updated at that time.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST =

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo has not printed a number since it flipped long on Monday. The quant did not whipsaw either.  UTIL remains handily above 472 and the VIX well under 17.25 so the bulls keep markets elevated.  For the SPX today, starting at 1451, the bulls need to move above 1454, and hold it for about ten minutes, and an upside market acceleration will occur taking price up over 1460.  The bears need to push under 1442 to accelerate the downside.  A move thru 1443-1453 is sideways action today. The ECB rate decision occurs within the hour, the FOMC minutes are released this afternoon and the Jobs Report is released tomorrow morning, all are market movers. Stay alert, markets remain extremely unstable.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST =

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long and the algorithm idled along all day without printing any numbers.  UTIL stayed above 472.06 and the VIX stayed below 17.25 so the bears were never any real threat today.  The SPX teased the 1440-1441 support all day long, which held, the bears did not receive the downside push needed from UTIL and VIX. Watch UTIL 472.06 and VIX 17.25 tomorrow, same dealio. For the SPX for Wednesday, starting at 1446, the bulls need to push above 1451.50 to accelerate the upside. Bears need to push under 1439 to accelerate the downside. A move thru 1440-1450 is sideways action. Markets remain unstable and are not to be trusted. Exercise caution.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST =

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to end the session.  The algo did not print any further numbers today after flipping long this morning.  The broad indexes petered out as the day moved along. The quant is tracking UTIL 472.06 and VIX 17.25 as the two most important items influencing markets currently. Both are bullish now so if either one crosses the number shown and turns bearish, the broad market selling will increase. In addition, if one of these two turn bearish, Keybot will be back in position to flip to the short side. If both remain bullish, the markets will float higher. The market behavior today is very odd. For example, the VIX was up strongly with the markets up which happens less than ten percent of the time.

For the SPX starting at 1444, the market bulls need to push above 1457 and the upside rally party will be humming on all gears with an upside acceleration above 1460 occurring in short order.  The bears need to push the SPX under 1441 to accelerate the downside. In addition, if either UTIL drops under 472.06, and/or the VIX moves above 17.25, with the SPX printing sub 1441, Keybot will likely whipsaw back to the short side.  A move thru 1442-1456 is sideways action. The algo number is only two ticks from the signal line so exercise caution. Markets are extremely erratic and unstable and not to be trusted.  Expect the unexpected this week. In a nutshell, for Tuesday, UTIL 472.06, VIX 17.25 and SPX 1457 and 1441 will dictate market direction.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST =

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

SPX Daily Chart Showing Keybot the Quant Algorithm Turns

Current signal remains valid until a change occurs.
10/1/12: Keybot the Quant flipped to the long side at 10:00 AM EST at SPX 1453; for the year thus far, SPX Benchmark is up 15.5%; Keybot is up 15.3%; Keybot actual trading is up 8.9%. Stay alert for a whipsaw.
9/17/12: Keybot the Quant flipped to the short side at 2:11 PM EST at SPX 1460; for the year thus far, SPX Benchmark is up 16.1%; Keybot is up 14.7%; Keybot actual trading is up 7.7%.
9/4/12: Keybot the Quant flipped to the long side at 2:13 PM EST at SPX 1402; for the year thus far SPX Benchmark is up 11.5%; Keybot is up 10.6%; Keybot actual trading is up 3.5%.
9/4/12: Keybot the Quant flipped to the short side at 10:34 AM EST at SPX 1399; for the year thus far SPX Benchmark is up 11.2%; Keybot is up 10.8%; Keybot actual trading is up 3.8%.
8/3/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1377; for the year thus far SPX Benchmark is up 9.5%; Keybot algo is up 9.2%; Keybot actual trading is up 2.5%.
8/2/12: Keybot the Quant flipped to the short side at 11:42 AM EST at SPX 1360; for th eyear thus far SPX Benchmark is up 8.1%; Keybot algo is up 10.4%; Keybot actual trading is up 5.8%.
7/26/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1349; for the year thus far SPX Benchmark is up 7.2%; Keybot algo is up 9.6%; Keybot actual trading is up 5.4%.
7/23/12: Keybot the Quant flipped to the short side at 9:30 AM EST at SPX 1348; for the year thus far SPX Benchmark is up 7.2%; Keybot algo is up 9.7%; Keybot actual trading is up 8.8%.
7/13/12: Keybot the Quant flipped to the long side at 9:38 AM EST at SPX 1342; for the year thus far SPX Benchmark is up 6.7%; Keybot algo is up 9.2%; Keybot actual trading is up 8.8%.
7/6/12: Keybot the Quant flipped to the short side at 9:57 AM EST at SPX 1354; for the year thus far SPX Benchmark is up 7.6%; Keybot algo is up 8.3%; Keybot actual trading is up 6.9%.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at 10 AM at SPX 1453.  The last trade gained about a percent overall.  The algorithm program has now caught up to the SPX benchmark at +15% but the actual trading return continues to lag. Most funds on Wall Street, however, would kill for a 9% return thus far this year. Keybot rotated into SPY for the long side.  The markets are extremely unstable and erratic. Stay especially guarded for a whipsaw moving forward today and tomorrow.  Note that the algo number is only two ticks from the signal line, not exactly a ringing endorsement of the long side, but the bulls are driving the bus now.

10/7/12; 7:00 PM EST =

10/5/12; 9:00 AM EST =

10/1/12; 10:00 AM EST = +60; signal line is +58; go long 1453; (Benchmark SPX for 2012 = +15.5%)(Keybot this trade = +0.6%; Keybot for 2012 = +15.3%)(Actual this trade = +1.2%; Actual for 2012 = +8.9%)

10/1/12; 9:37 AM EST = +60; signal line is +57 but algorithm says stay short

9/30/12; 7:00 PM EST EOM EOQ3 = +44; signal line is +56

9/28/12; 10:00 AM EST = +44; signal line is +56

9/25/12; 10:00 AM EST = +44; signal line is +57

9/23/12; 7:00 PM EST = +44; signal line is +58

9/21/12; 3:53 PM EST = +44; signal line is +59

9/21/12; 9:30 AM EST = +60; signal line is +60 but algorithm says stay short

9/20/12; 12:08 PM EST = +44; signal line is +60

9/20/12; 10:59 AM EST = +60; signal line is +61

9/20/12; 9:30 AM EST = +44; signal line is +61

9/19/12; 9:00 AM EST = +60; signal line is +62

9/17/12; 2:11 PM EST = +60; signal line is +62; go short 1460; (Benchmark SPX for 2012 = +16.1%)(Keybot this trade = +4.1%; Keybot for 2012 = +14.7%)(Actual this trade = +4.2%; Actual for 2012 = +7.7%)