STOCK MARKET BEARISH -- SHORT

Keybot the Quant flips bearish shortly after the opening bell today. The algo wanted to go short yesterday but was held back by one single SPX point, so the gap down move takes -1.5% from the algo program and -3% from the latest trade.  The algo exits SSO and enters SH. Keybot whipsaws short within 48 hours after the bullish move. Since a whipsaw occurred, Keybot drops down into the single ETF's again to lessen risk. Semiconductors collapse at the opening bell and financials (XLF 20.13), retail (RTH 54.08) and volatility (VIX 14.21) all failed shortly after the session began. Watch these three parameters closely for any sign of a bullish recovery. The VIX is 14.20, slipping one penny to the bull side as this is typed. Bears are driving the bus again. As always, stay alert for a whipsaw back to the long side either today or tomorrow although the algo number is almost 50 points under the signal line so the caution flag is not required at this time.

8/16/13; 9:00 AM EST =

8/15/13; 9:50 AM EST = +3; signal line is +51

8/15/13; 9:43 AM EST = +33; signal line is +53; go short 1669; (Benchmark SPX for 2013 = +17.0%)(Keybot this trade = -1.5%; Keybot for 2013 = +11.4%)(Actual this trade = -2.8%; Actual for 2013 = +4.8%)

8/14/13; 2:10 PM EST = +49; signal line is +54 but algorithm says stay long

8/14/13; 11:34 AM EST = +65; signal line is +54

8/14/13; 9:39 AM EST = +49; signal line is +54 but algorithm says stay long

8/13/13; 12:50 PM EST = +65; signal line is +54; go long 1694; (Benchmark SPX for 2013 = +18.8%)(Keybot this trade = -0.2%; Keybot for 2013 = +12.9%)(Actual this trade = -0.6%; Actual for 2013 = +7.6%)