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%)