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%)