STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips long at the opening bell today.  The SPX spiked over 1369, the NYA over 8000 and the VIX under 16, as highlighted yesterday, so the algo did indeed turn bullish at SPX 1370. Keybot exited SDS and entered SSO. The short trade over the last month resulted in a 5% gain for the quant's computer program and a 9% gain in the actual trading (due to the 2x ETF). Note that both Keybot's program and the actual trading have now exceeded the SPX benchmark Index on the year. It took 10 months, but slow and steady Keybot outsmarted the benchmark, at least up to this point.  The program is up 20% on the year and the actual return is now up 18% on the year.

Continue watching the above three parameters; the fine-tuned numbers currently indicate SPX 1369, NYA 7995 and VIX 15.95.  In addition, Keybot is now tracking XLF 15.61. Thus, use VIX 15.95 (now at 15.82 contributing bullishly to markets) and XLF 15.61 (now at 15.55 contributing bearishly to markets) as your guide forward. If XLF moves above 15.61, the broad indexes will move much higher towards 1391. The bears must prevent XLF 15.61 and move the VIX back above 15.95 to stop the upside momo.  The bulls are driving the bus now, that was sudden and sharp. Stay alert for a whipsaw since the move is not overly convincing as yet. The bulls need XLF 15.61 and they can throw the confetti.

11/21/12; 10:00 AM EST =

11/20/12; 9:00 AM EST =

11/19/12; 9:30 AM EST = -29; signal line is -35; go long 1370; (Benchmark SPX for 2012 = +8.9%)(Keybot this trade = +5.0%; Keybot for 2012 = +20.3%)(Actual this trade = +8.9%; Actual for 2012 = +17.5%)

11/18/12; 7:00 PM EST = -74; signal line is -34

11/14/12; 12:12 PM EST = -74; signal line is -31

11/14/12; 11:34 AM EST = -60; signal line is -29

11/14/12; 11:24 AM EST = -74; signal line is -26

11/14/12; 11:08 AM EST = -60; signal line is -24

11/14/12; 10:45 AM EST = -74; signal line is -22

11/14/12; 10:28 AM EST = -60; signal line is -20

11/11/12; 7:00 PM EST = -46; signal line is -18

11/9/12; 10:00 AM EST = -46; signal line is -17

11/8/12; 10:06 AM EST = -47; signal line is -16

11/8/12; 9:38 AM EST = -31; signal line is -15

11/8/12; 9:30 AM EST = -47; signal line is -13

11/7/12; 1:19 PM EST = -31; signal line is -12

11/7/12; 1:09 PM EST = -15; signal line is -11

11/7/12; 1:01 PM EST = -31; signal line is -9

11/7/12; 10:58 AM EST = -47; signal line is -7

11/7/12; 10:56 AM EST = -31; signal line is -3

11/7/12; 10:01 AM EST = -15; signal line is -1

11/7/12; 9:47 AM EST = +1; signal line is +2

11/7/12; 9:31 AM EST = -15; signal line is +4

11/6/12; 9:30 AM EST = +1; signal line is +6

11/5/12; 3:52 PM EST = -15; signal line is +7

11/5/12; 3:40 PM EST = +1; signal line is +10

11/5/12; 10:35 AM EST = -15; signal line is +11

11/5/12; 9:39 AM EST = -31; signal line is +14

11/5/12; 9:35 AM EST = -15; signal line is +17

11/4/12; 7:00 PM EST = +1; signal line is +20

11/2/12; 9:00 AM EST = +1; signal line is +22

11/1/12; 10:00 AM EST = +1; signal line is +23

10/31/12; 7:00 PM EST EOM = +1; signal line is +25

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

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

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

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

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

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

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

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

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

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%)