STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 1694 a short time ago. Semiconductors and financials move higher while volatility is crushed with the VIX down at 12.33. The trade over the last few days is flat. Keybot exits SDS and enters SSO. The bulls are driving the bus again but, as always, stay alert for a whipsaw move back to the short side either today or tomorrow.

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

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%)

8/13/13; 10:38 AM EST = +65; signal line is +54 but algorithm says stay short

8/13/13; 10:22 AM EST = +49; signal line is +53

8/12/13; 10:10 AM EST = +65; signal line is +53 but algorithm says stay short

8/11/13; 7:00 PM EST = +49; signal line is +52

8/9/13; 12:45 PM EST = +49; signal line is +52

8/9/13; 12:34 PM EST = +65; signal line is +52 but algorithm says stay short

8/9/13; 11:00 AM EST = +49; signal line is +51

8/9/13; 10:43 AM EST = +65; signal line is +51 but algorithm says stay short

8/9/13; 9:30 AM EST = +49; signal line is +51

8/8/13; 11:40 AM EST = +51; signal line is +51 but algorithm says stay short

8/8/13; 10:10 AM EST = +35; signal line is +51

8/7/13; 1:35 PM EST = +51; signal line is +52

8/7/13; 1:16 PM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 12:17 PM EST = +49; signal line is +52

8/7/13; 10:55 AM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 10:38 AM EST = +49; signal line is +51

8/7/13; 10:26 AM EST = +33; signal line is +52

8/7/13; 9:35 AM EST = +49; signal line is +51; go short 1691; (Benchmark SPX for 2013 = +18.6%)(Keybot this trade = +5.6%; Keybot for 2013 = +13.1%)(Actual this trade = +4.0%; Actual for 2013 = +8.2%)