STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Financials run strongly higher and volatility drops. The VIX is under 13.93 so the bears folded like a cheap suit and the SPX runs to the 1859 resistance and punches up through printing new all-time highs. The bulls are cruising. Bears got nothing unless they push VIX back above 13.93. Bulls will next focus on pushing copper higher (JJC) to receive more upside energy. VIX is currently printing 13.54, the lows of the day, and the SPX is at the highs of the day above 1867. Today is EOM.

3/2/14; 7:00 PM EST EOM =

2/28/14; 10:05 AM EST = +62; signal line is +43

2/28/14; 10:00 AM EST = +48; signal line is +43

2/27/14; 10:41 AM EST = +48; signal line is +44

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The battle of financials and volatility continues. Bulls need VIX under 13.93. Bears need XLF under 21.44. One side or the other will flinch and this will dictate the firm direction forward for a few days.

For the SPX, starting at a new closing high at 1854, the bulls need any amount of positivity and this will create an upside acceleration of a few handles, testing 1859 immediately. The bears need to push under 1841 to accelerate the downside. A move through 1842-1853 is sideways action. S&P futures are -2 about three hours before the opening bell. The imminent turn notation is removed but if XLF drops under 21.44 consider it to be fully restored with the algo in position to flip short. If XLF  moves sub 21.44, and the SPX sub 1841, Keybot will likely flip short. Bulls will run strongly higher into the weekend if they receive the VIX sub 13.93 rocket fuel.

2/28/14; 10:00 AM EST =

2/27/14; 10:41 AM EST = +48; signal line is +44

2/27/14; 10:13 AM EST = +32; signal line is +44 but algorithm remains long

2/26/14; 1:09 PM EST = +48; signal line is +44

Technical Outage

The web site was down yesterday due to a power outage. Systems are starting to return to normal.

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long moving into the Thursday session. Today is a battle between financials and volatility; the two main market drivers currently. XLF is at 21.48 above the critical 21.43 bull-bear line in the sand identified by the algo; only one nickel above. This creates market bullishness and keeps equities elevated. VIX is 14.35 above the critical 13.93 bull-bear line in the sand. This creates market weakness. Thus, very simply, bears need XLF under 21.43 to claim victory and send equities lower. Bulls need VIX under 13.93 to throw confetti and finally print new all-time closing highs for the SPX in the days ahead.

For the SPX starting at 1845, the bulls need to touch the 1853 handle to accelerate the upside. Price keeps trying to punch through the 1851-1853 overhead resistance. Bears need to push below 1841 to accelerate the downside. A move through 1842-1852 is sideways action. If XLF loses 21.43, and remains under, and the SPX drops under 1841, and remains under, Keybot will likely flip short.

At 5:30 AM EST, S&P futures are -5 and dropping, losing 9 handles over the last hour. Russia is stirring up the pot in the Ukraine which is casting a dark cloud over today's global markets. Markets remain very unstable and erratic. The imminent turn notation is added in the title line since, as described above, a few pennies lower in XLF, and 4 or 5 handles lower in the SPX, will likely cause Keybot to flip short.

2/28/14; 10:00 AM EST =

2/26/14; 1:09 PM EST = +48; signal line is +44

2/26/14; 12:40 PM EST = +62; signal line is +43

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the algo goes wild printing nine numbers thus far today. Volatility is oscillating above and below the VIX 13.93 bull-bear level and the main factor pushing markets up and down inversely. VIX is now at 14.00 on the bear side of 13.93. Simply watch VIX since it is the rudder steering the market ship today. If VIX remains elevated and the XLF drops under 21.43, and the SPX drops under 1840, Keybot will likely flip short. Otherwise, the algo will likely remain long. Note that the algo number and signal line now show only a 4-point spread.

2/28/14; 10:00 AM EST =

2/26/14; 1:09 PM EST = +48; signal line is +44

2/26/14; 12:40 PM EST = +62; signal line is +43

2/26/14; 11:51 AM EST = +48; signal line is +43

2/26/14; 11:27 AM EST = +62; signal line is +43

2/26/14; 11:03 AM EST = +48; signal line is +42

2/26/14; 10:43 AM EST = +62; signal line is +42

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the wild market action continues. The bears push financials lower and volatility higher creating market weakness but then folded like a cheap suit. XLF is above 21.43 (now at 21.49). VIX is below 13.93 (now at 13.90). Thus, both parameters are in the bull camp creating upside market lift. The SPX tested the important 1851-1853 and failed on the first attempt. The bulls keep trucking along. Bears need help from financials or volatility.

2/28/14; 10:00 AM EST =

2/26/14; 10:43 AM EST = +62; signal line is +42

2/26/14; 10:07 AM EST = +48; signal line is +41

2/26/14; 9:58 AM EST = +32; signal line is +41 but algorithm remains long

2/26/14; 9:40 AM EST = +48; signal line is +41

2/25/14; 3:59 PM EST = +62; signal line is +40

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The XLF threatened to drop under 21.43 but receives a boost instead staying above and in the bull camp continuing to create market upside. While everyone was watching financials, the bulls slapped VIX silly, crushing it to 13.56, under the 13.93 bull-bear line in the sand in the final minute. The lower VIX will create bull juice tomorrow for equities unless the bears push VIX above 13.93 immediately at the opening bell.

To gain more upside strength, bulls need to push copper higher. Watch JJC 39.84. The bears need either XLF under 21.43 or VIX above 13.93 or they will keep folding like a cheap suit. For the SPX starting at 1845 for Wednesday, the bulls need to touch the 1853 handle and an upside acceleration to 1859 will occur in quick order. The bears need to push under 1840 to accelerate the downside. A move through 1841-1852 is sideways action. The bulls are cruising with the algo number 22 points above the signal line. Interestingly, the caution flag remains out because if the bears can achieve the XLF and VIX goals as listed above, and push the SPX under 1840, Keybot will likely flip short. Markets remain very unstable.

2/28/14; 10:00 AM EST =

2/25/14; 3:59 PM EST = +62; signal line is +40

2/25/14; 11:47 AM EST = +48; signal line is +39

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. RTH explodes higher today wanting to stay in the bull camp for a while. VIX remains elevated wanting to stay in the bear camp, ditto copper (JJC). The financials are interesting. The air is deflating from the XLF balloon as price scrapes lower to 21.48 only a nickel from the bull-bear danger level at XLF 21.43 which will create market negativity and place Keybot in position to go short. XLF 21.43 is the key metric. Bulls will be okay if they stay above 21.43. Bears will growl strongly if they push XLF under 21.43.

2/28/14; 10:00 AM EST =

2/25/14; 11:47 AM EST = +48; signal line is +39

2/25/14; 11:36 AM EST = +62; signal line is +38

2/25/14; 10:00 AM EST = +48; signal line is +36

2/24/14; 9:45 AM EST = +48; signal line is +35; go long 1846; (Benchmark SPX for 2014 = -0.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +2.5%)(Actual this trade = -3.8%; Actual for 2014 = +4.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is in the bull camp now as the wild market action continues. The fight for market direction is between retail, financials, volatility and copper. The bears need either RTH 58.63 or XLF 21.43. The bulls need either VIX 13.92 or JJC 39.85. One of these four parameters will flinch and equities will follow that direction. If all four remain status quo, then equities float along sideways with a slight upward bias.

For the SPX for Tuesday, starting at 1848, dead flat on the year thus far, the bulls need to touch the 1859 handle to accelerate the upside. The bears need to push below 1837 to accelerate the downside. A move through 1838-1858 is sideways action. The bulls are driving the bus but the caution flag remains out since a potential whipsaw may occur.

Retail is very close to its bull-bear line so that would be a big tell on markets at the opening bell. If RTH stays above 58.63 (now only 7 pennies above), equities will continue floating higher. If RTH falls under 58.63, equities will sell off. Note how the VIX did not fall through the 13.92-14.00 area today. This is why equities peaked and rolled over to the downside. Bulls need the VIX under 13.92 if they plan on taking markets higher. Keybot prints a pre-scheduled number tomorrow morning.

2/28/14; 10:00 AM EST =

2/25/14; 10:00 AM EST =

2/24/14; 9:45 AM EST = +48; signal line is +35; go long 1846; (Benchmark SPX for 2014 = -0.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +2.5%)(Actual this trade = -3.8%; Actual for 2014 = +4.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Note: Fixed the typo for the date and time this morning it should have been 2/24/14 and 9:45 AM as shown below for the flip to the long side. Apologies for the typo but it should have been self explanatory.

Keybot the Quant flips long at SPX 1846. RTH jumped into the bull camp to create the upward thrust with the SPX now printing new all-time highs. As soon as price touched 1846 it shot higher like a rocket. Financials, XLF, remain bullish. Copper and volatility remain in the bear camp. The bulls must send the VIX bellow 13.95-14.00 to prove that further upside to SPX 1860-1880 is on tap. The algo program lost -1% on the last trade and the actual trading lost nearly -4%. TWM was slapped hard due to stronger small caps driven by the speculative biotech stocks. Keybot switches into QLD and continues to use the leveraged ETF's since a whipsaw has not occurred in many weeks. As always, stay alert for a whipsaw back to the short side either today or tomorrow.

Bears need to push RTH under 58.65 and the upside market move would stall. Bulls need to maintain the RTH bullishness while pushing VIX under 14 since this will clear the path to SPX 1860+. The bulls are driving the bus but markets are extremely erratic and unstable.

3/2/14; 7:00 PM EST EOM =

2/28/14; 10:00 AM EST =

2/25/14; 10:00 AM EST =

2/24/14; 9:45 AM EST = +48; signal line is +35; go long 1846; (Benchmark SPX for 2014 = -0.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +2.5%)(Actual this trade = -3.8%; Actual for 2014 = +4.0%)

2/23/14; 7:00 PM EST = +32; signal line is +33

2/21/14; 9:51 AM EST = +32; signal line is +32

2/20/14; 12:29 PM EST = +32; signal line is +31 but algorithm remains short

2/20/14; 11:22 AM EST = +16; signal line is +30

2/20/14; 11:03 AM EST = +32; signal line is +29 but algorithm remains short

2/20/14; 9:48 AM EST = +16; signal line is +26

2/20/14; 9:37 AM EST = +32; signal line is +24 but algorithm remains short

2/19/14; 3:52 PM EST = +16; signal line is +22; go short 1828; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = +3.5%; Keybot for 2014 = +3.5%)(Actual this trade = +9.1%; Actual for 2014 = +7.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is bearish to begin the new week of trading. The bears need XLF under 21.42 to confirm a downward market path ahead. The bulls need RTH 58.68 (HOD Friday was 58.66), JJC 39.91 and/or VIX under 14 and the upward market path would be confirmed. All four parameters are very near the bull-bear lines in the sand so anything can happen. If RTH, JJC or VIX turn bullish, and remain bullish, and the SPX moves above 1846, and stays above, Keybot will likely flip long.

For the SPX starting at 1836, the bulls need to move above 1846 to accelerate the upside. The bears need to push below 1836 to accelerate the downside, thus, any smidge of negativity in the S&P futures will create a happy start for bears. A move through 1836-1845 is sideways action. S&P futures are +1 Sunday evening.The bears are driving the bus with only one point difference between the algo number and signal line. Keybot prints two pre-scheduled numbers this week; one on Tuesday morning and one on Friday morning. The bears need weaker banks or they will fold like a cheap suit. Bulls need stronger retail stocks and copper. Copper is trading lower as the week begins.

3/2/14; 7:00 PM EST EOM =

2/28/14; 10:00 AM EST =

2/25/14; 10:00 AM EST =

2/23/14; 7:00 PM EST = +32; signal line is +33

2/21/14; 9:51 AM EST = +32; signal line is +32

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short through the weekend. The algo took a day or so to latch all the necessary parameters in place, and the SPX popped above 1843, to create the flip to the long side, but the signal line continues higher as well nullifying the move. The algo number and signal line are dead even. Markets are at an exact inflection point and do not know which way to move. Financials, retail, copper and volatility are all important. The bulls maintain the XLF above 21.42 which keeps the stock market elevated. The RTH was within a couple pennies of the bull-bear line, ready to turn bullish and add market upside fuel, but instead leaked lower.

Both sides were content to let things settle over the weekend and decide the winner next week. The areas and levels of greatest interest to the algo can be identified tomorrow after the Sunday pre-scheduled number prints. Bears need weaker financials; it holds the key to their victory. Bulls need a higher retail sector so any good news about customer spending would send them to victory. Flip a coin. The winner will likely be clear come Monday or Tuesday.

2/23/14; 7:00 PM EST =

2/21/14; 9:51 AM EST = +32; signal line is +32

2/20/14; 12:29 PM EST = +32; signal line is +31 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is on the short side moving into the final Friday session for the week. XLF teased the 21.42 area in the final minutes yesterday and remains on the bull side at 21.44 by two pennies. Copper, retail and volatility remain in the bear camp causing market negativity. So the following four parameters are currently dictating equity direction; XLF 21.42, JJC 39.92, RTH 58.70 and VIX 14.00. The bears must push XLF under 21.42 to send markets lower. If financials move higher today, equities will move higher into the weekend. The bulls must maintain the elevated XLF while at the same time turning at least 1 of the other 3 parameters to their side. If JJC, RTH or VIX turn bullish, any one of them, equities will resume the upward path.

For the SPX starting at 1840, the bulls only need 3 points, to touch the 1843 handle, the critical resistance for the last few days, and the upside will accelerate to test the all-time highs at 1848-1851 in quick order. The bears need to push under 1825 to accelerate the downside (this would occur if XLF drops under 21.42 and heads lower). A move through 1826-1842 is sideways action. S&P futures are +3 about 4-1/2 hours before the opening bell which sets the table for a test of the 1843 resistance.

Keybot wants to go long right now but other parameters have to latch in place to permit the move. If the SPX moves above 1843, Keybot will likely flip long, however, if there is a gap-up opening, a timer may prevent the move for about 90 minutes. A bull-bear struggle is ongoing with the algo number and signal line within one point of each other. Markets are deciding which way to break. Both bulls and bears have their hands on the steering wheel as the bus careens down the boulevard. Watch SPX 1843 and XLF 21.42 for the answer.

2/23/14; 7:00 PM EST =

2/20/14; 12:29 PM EST = +32; signal line is +31 but algorithm remains short

2/20/14; 11:22 AM EST = +16; signal line is +30

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the XLF dances to and fro along the critical 21.42 bull-bear line. For the bulk of the afternoon, the financials are on the bull side causing the broad indexes to float higher. The algo number and signal line are only separated by one point and Keybot wants to flip back to the long side right now, however, other internal programming rules will have to latch to permit the move.  One of those is SPX 1848 so if the bulls push higher into the close, keeping XLF above 21.42, and moving SPX above 1848, the algo may whipsaw back to the long side. The SPX is now printing 1842 with 38 minutes remaining in the session. The imminent turn status is displayed since the algo is in position to go long. Financials are important.

2/23/14; 7:00 PM EST =

2/20/14; 12:29 PM EST = +32; signal line is +31 but algorithm remains short

2/20/14; 11:22 AM EST = +16; signal line is +30

2/20/14; 11:03 AM EST = +32; signal line is +29 but algorithm remains short

2/20/14; 9:48 AM EST = +16; signal line is +26

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short. Financials are fighting back but struggling. Watch XLF 21.42 since it is the rudder for the market ship today; if XLF is under 21.42, equities sell off; if XLF is above 21.42, equities will recover and move higher.

2/23/14; 7:00 PM EST =

2/20/14; 9:48 AM EST = +16; signal line is +26

2/20/14; 9:37 AM EST = +32; signal line is +24 but algorithm remains short

2/19/14; 3:52 PM EST = +16; signal line is +22; go short 1828; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = +3.5%; Keybot for 2014 = +3.5%)(Actual this trade = +9.1%; Actual for 2014 = +7.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the bear side at SPX 1828 in the final minutes of trading yesterday. As always, stay alert for a potential whipsaw move today or tomorrow. Markets deteriorated into the close with the financials collapsing triggering the strong negativity. As yesterday played out, the higher volatility set the course lower for equities from the start. Even though the broad indexes recovered and threatened new all-time highs, the VIX remained in the bear camp. At about lunch time, copper fell through the JJC 39.92 line in the sand which created negativity and the afternoon weakness. In the final minutes, the banks fell apart. The algorithm program gains +3.5% on the last trade and the actual trading gains a touch over +9% placing the actual trading results well into the positive for 2014 thus far. Keybot cycled out of QLD and entered TWM.

For Thursday, the bulls need either XLF 21.42, JJC 39.92 and/or RTH 58.70 to stop the downward market move and stabilize the indexes. Any 1 of the 3 would do. The bears will be trying to push all 3 parameters lower to increase the negativity. For the SPX starting at 1829, the bears need to push under 1827 and a downside acceleration will occur targeting sub 1820 numbers. A move through 1828-1846 is sideways action. The bulls need to recover yesterday's down move and push above 1847 to regain their mojo, a formidable task, but not impossible. The bulls will instead be focused on pumping the financial, copper and retail sectors higher. The bears are driving the bus again.

2/23/14; 7:00 PM EST =

2/19/14; 3:52 PM EST = +16; signal line is +22; go short 1828; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = +3.5%; Keybot for 2014 = +3.5%)(Actual this trade = +9.1%; Actual for 2014 = +7.8%)

2/19/14; 12:07 PM EST = +32; signal line is +20

2/19/14; 9:36 AM EST = +48; signal line is +18

2/19/14; 9:00 AM EST = +62; signal line is +15

2/18/14; 12:32 PM EST = +62; signal line is +13

2/18/14; 10:39 AM EST = +48; signal line is +11

2/18/14; 9:51 AM EST = +32; signal line is +10

2/16/14; 7:00 PM EST = +46; signal line is +8

2/14/14; 10:00 AM EST = +46; signal line is +7

2/13/14; 2:50 PM EST = +46; signal line is +6

2/13/14; 2:34 PM EST = +32; signal line is +4

2/13/14; 1:13 PM EST = +46; signal line is +3

2/12/14; 10:09 AM EST = +32; signal line is +1

2/12/14; 9:58 AM EST = +46; signal line is -2

2/11/14; 3:37 PM EST = +32; signal line is -4

2/11/14; 3:10 PM EST = +46; signal line is -5

2/11/14; 11:23 AM EST = +32; signal line is -7

2/10/14; 1:07 PM EST = +16; signal line is -9

2/10/14; 12:17 PM EST = +0; signal line is -10

2/10/14; 10:48 AM EST = +16; signal line is -11

2/9/14; 7:00 PM EST = +0; signal line is -13

2/7/14; 9:00 AM EST = +0; signal line is -13

2/6/14; 10:32 AM EST = +0; signal line is -14; go long 1767; (Benchmark SPX for 2014 = -3.8%)(Keybot this trade = +0.0%; Keybot for 2014 = +0.0%)(Actual this trade = -0.1%; Actual for 2014 = -1.3%)

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the algo prints the pre-scheduled number as well as a number shortly after the opening bell. The bears push VIX above 14 which helps to create a ceiling in equities but the bulls push copper higher, JJC remaining above 39.92, to help maintain that steady upside buoyancy in stocks. Same dealio. Bears need to keep VIX above 14 and moving higher and move JJC under 39.92 to send equities lower. Bulls need to keep JJC above 39.92 and pull VIX under 14 to send equities higher. Bulls will also receive juice with RTH 58.70; price is at 58.59.

The SPX 1843 resistance gave way so price shot up to a HOD at nearly 1848; the all-time closing high is 1848.38. The bulls remain in control but the gap begins to narrow with a 30-point spread between the algo number and signal line.

2/23/14; 7:00 PM EST =

2/19/14; 9:36 AM EST = +48; signal line is +18

2/19/14; 9:00 AM EST = +62; signal line is +15

2/18/14; 12:32 PM EST = +62; signal line is +13

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The three parameters previously listed rule the roost for Wednesday's trade; VIX 14.00, JJC 39.92 and RTH 58.70. These parameters are all within pennies of the bull-bear lines so anything can happen. Bears will chart the path downward with VIX above 14 and/or JJC under 39.92. Bulls will win if RTH moves above 58.70. Since copper, JJC, is only one granule away from the bull-bear line in the sand, copper will likely tell the tale. Bears need weaker copper overnight. Bulls need stronger copper.

For the SPX starting at 1841, the bulls need to punch up through the critical 1843 resistance and an upside acceleration occurs. The wine will be flowing like water for the bulls since new all-time highs above 1848-1851 will be on the way. The bears need to push under 1835 to accelerate the downside. A move through 1836-1842 is sideways action. Bears must attain either the higher volatility or lower copper to stop the market upside, otherwise markets will float sideways to sideways higher. Keybot prints a pre-scheduled number in the morning. Bulls are cruising along without a worry or care.

2/23/14; 7:00 PM EST =

2/19/14; 9:00 AM EST =

2/18/14; 12:32 PM EST = +62; signal line is +13

2/18/14; 10:39 AM EST = +48; signal line is +11

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the holiday-shortened week is off and stumbling. The algo prints three numbers today thus far. Volatility, retail and copper are all very active and tossing the broad indexes to and fro. The bears need to push VIX above 14.00 (now at 13.87) and/or JJC under 39.92 (now at 39.95) to send markets lower. The bulls need to push RTH above 58.63 (now at 58.45) to receive more upside fuel. One of these three parameters will flinch and markets will move in the direction indicated. If all three remain status quo, equities move sideways.

The SPX keeps tapping the 1843 resistance. Bulls need to move above 1843 to send price to the all-time highs at 1848-1851. Bulls are cruising with the algo number almost 50 points above the signal line. Bears need higher volatility and lower copper.

2/19/14; 9:00 AM EST =

2/18/14; 12:32 PM EST = +62; signal line is +13

2/18/14; 10:39 AM EST = +48; signal line is +11

2/18/14; 9:51 AM EST = +32; signal line is +10

2/16/14; 7:00 PM EST = +46; signal line is +8

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long during the 3-day holiday weekend. US equity markets do not reopen until Tuesday morning. Retail and volatility are key. The bulls need to push RTH above 58.70; now at 58.46 causing market bearishness. The bears need to push volatility, VIX, above 14.15; now at 13.57 causing bullishness. Markets should stagger sideways until one of the two parameters flinch.

For the SPX starting at 1839, the bulls need to push up through the strong 1843 resistance and the upside will accelerate to the all-time highs at 1848-1851. The bears need to push under 1826 to accelerate the downside. A move through 1827-1842 is sideways action. Keybot prints one pre-scheduled number this week on Wednesday morning.

2/23/14; 7:00 PM EST =

2/19/14; 9:00 AM EST =

2/16/14; 7:00 PM EST = +46; signal line is +8

2/14/14; 10:00 AM EST = +46; signal line is +7

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the 3-day holiday weekend. Volatility was crushed creating upside market strength. Next week will likely be a battle between volatility and the retail sector; bears need higher volatility and bulls need a stronger retail sector. The areas and levels of interest can be identified once the Sunday pre-scheduled number prints. The bulls continue cruising.

2/16/14; 7:00 PM EST =

2/14/14; 10:00 AM EST = +46; signal line is +7

2/13/14; 2:50 PM EST = +46; signal line is +6

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The bears try to push VIX above 14.15 but fall one penny shy with VIX ending at 14.14. Isn't it amazing how the algorithm can identify these levels before they occur? Since VIX sits at the 14.14-14.15 bull-bear line in the sand, whichever way the VIX pivots tomorrow after the opening bell, the broad indexes are going to pivot in the opposite direction. Bears need XLF 21.37 but the bulls finished far above at 21.61. Bulls can receive additional fuel with RTH 58.65. Thus, bears are going to have to send volatility higher from the get-go tomorrow, otherwise, they will fold like a cheap suit and the broad indexes will move far higher.

UTIL explodes higher to 516.25 a huge run over the last couple days creating bullish markets. For next week, UTIL 502.46 is a key bull-bear level and the 504.65 goes away, thus, it is an easier road for the bulls. For the SPX for Friday starting at 1830, the bulls only need a smidge of green in the futures and another upside acceleration occurs through 1832 resistance and higher. Bears must keep the S&P futures negative overnight. The bears need to push under 1809 to accelerate the downside. A move through 1810-1829 is sideways action. Bulls are in firm control with the aglo number 40 points above the signal line. Keybot prints a pre-scheduled number tomorrow morning shortly after the opening bell.

2/16/14; 7:00 PM EST =

2/14/14; 10:00 AM EST =

2/13/14; 2:50 PM EST = +46; signal line is +6

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long and the VIX drops under and remains under 14.15 pushing the SPX higher to 1830. The bulls are driving the bus and thump, thump, they just ran over the bears. Watch VIX 14.15. Bears need VIX above 14.15 or they will spend the evening in the emergency room.

2/14/14; 10:00 AM EST =

2/13/14; 2:50 PM EST = +46; signal line is +6
2/13/14; 2:34 PM EST = +32; signal line is +4

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as another upside thrust occurs today. The bulls push VIX under 14.15 creating the upside fuel to send the SPX through 1818 resistance, then 1824, then 1828. VIX regains 14.15 a few minute ago to halt the upside but the VIX is dropping back below as this message is typed. XLF actual dropped under 21.37 into bear territory at the opening bell but the bears folded like a cheap suit and XLF is now far higher at 21.57 creating bull fuel. Everything is going the bulls way. The bears must push VIX above 14.15 to cap the market upside. VIX is at 14.10 making for happy bulls.

2/14/14; 10:00 AM EST =

2/13/14; 2:34 PM EST = +32; signal line is +4

2/13/14; 1:13 PM EST = +46; signal line is +3

2/12/14; 10:09 AM EST = +32; signal line is +1

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The fight continues between volatility and financials. Bulls need VIX under 14.15 to receive more upside fuel. Bears need to push XLF under 21.37 to receive downside fuel. For the SPX for Thursday, starting at 1819, the bulls need to move above 1826.50 and an upside acceleration will occur testing strong 1828 resistance, which should give way quickly, then sending price into the 1830's. The bears need to push under 1816, only 3 points lower, to create a downside acceleration. A move through 1817-1826 is sideways action. The bulls continue to cruise along without worry. Bears need weaker financials, utilities and commodities to position the algo for a move back to the short side.

2/14/14; 10:00 AM EST =

2/12/14; 10:09 AM EST = +32; signal line is +1

2/12/14; 9:58 AM EST = +46; signal line is -2

2/11/14; 3:37 PM EST = +32; signal line is -4

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long moving into the Wednesday session. Higher utilities and financials and lower volatility create the upside rally. The algo is now tracking financials (XLF), commodities (GTX), volatility (VIX) and retail (RTH). Bulls need VIX under 14.15 and/or RTH above 58.68. Bears need XLF under 21.37 and/or GTX under 4786. Volatility and financials are the most important parameters since price is very close to these bull-bear levels. If bullish, you want VIX under 14.15 to create more upside. If bearish, you want XLF under 21.37 which would stop the market upside.

For the SPX starting at 1820, the bulls need to touch the 1824 handle to receive the all-clear signal for a launch into the 1830's in quick order. The bears need to push under 1800 to accelerate the downside. A move through 1801-1823 is sideways action. The bulls are cruising with their feet up on the dash board and will crush bears if volatility moves lower. The bears need lower financials and commodities to push equities lower and set the algo up for a potential move to the bear side.

2/14/14; 10:00 AM EST =

2/11/14; 3:37 PM EST = +32; signal line is -4

2/11/14; 3:10 PM EST = +46; signal line is -5

2/11/14; 11:23 AM EST = +32; signal line is -7

STOCK MARKET BULLISH -- LONG

Keybot the Quant motors along on the bull side as the XLF is at 21.44 above the 21.37 bull-bear line providing today's upside fuel. The bulls dance a jig of joy. In addition, volatility is dropping and UTIL catapults above 510 adding further bull fuel. The VIX is at 14.37 in the bear camp not yet under the 14.15 bull-bear line in the sand but very close and the downside VIX direction creates the upside market strength. Thus, watch VIX 14.15 which will catapult markets higher and XLF 21.37 which would send markets lower. The bulls are cruising. The algo number is now 39 points above the signal line so the caution flag is no longer needed. It is a bull party today so far. Financials and volatility will tell the story today and tomorrow.

2/14/14; 10:00 AM EST =

2/11/14; 11:23 AM EST = +32; signal line is -7

2/10/14; 1:07 PM EST = +16; signal line is -9

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Tuesday session. Utilities and financials create the lift in equities today although markets only finished a hair above the flat line. For Tuesday, the bulls need XLF 21.37 and/or VIX 14.20 to send the SPX well above 1800. The bears need UTIL 504.65 to stop the market upside. XLF begins at 21.31 only six pennies on the bear side. Therefore, financials rule the roost and will dictate market direction. If a bull, you want to see XLF above 21.37 and you will dance a jig of joy. If a bear, you want to see XLF remain under 21.37 and you will sing a happy tune since the market upside is likely stalled.

For the SPX starting at 1800, closing at the highs, the bulls only need a smidge of green in the futures and the markets will launch higher with the SPX likely headed to 1808-1809 resistance in a heartbeat. The bears need to keep the overnight futures negative and during the trading session tomorrow must push the SPX under 1792 to accelerate the downside. A move through 1793-1799 is sideways action. The bulls are driving the bus and markets remain at an inflection point. Utilities, financials and volatility will tell the tale, especially the XLF 21.37 level at the opening bell.

2/14/14; 10:00 AM EST =

2/10/14; 1:07 PM EST = +16; signal line is -9

2/10/14; 12:17 PM EST = +0; signal line is -10

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the utilities make another push higher today creating bull fuel. UTIL is above 504.65. The SPX turns positive. The XLF is 21.30 recovering from the lows and now knocking on the bull-bear line at 21.36 (use 21.36 instead of the 21.38). If XLF crosses above 21.36, equities will rally strongly higher well above SPX 1800. The bears are trying to prevent XLF 21.36 with all their might. High drama. Financials are now dictating market direction more than any other parameter. XLF 21.36 provides the market answer going forward.

2/14/14; 10:00 AM EST =

2/10/14; 1:07 PM EST = +16; signal line is -9

2/10/14; 12:17 PM EST = +0; signal line is -10

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Utilities provide some bull juice, despite the weaker markets today, but then give it up with UTIL moving above 504.65, then dropping back below. The financials are laying an egg with XLF 21.23 preferring the bear camp. Watch UTIL 504.65 since it is the parameter most greatly affecting market direction right now. Bulls need UTIL above 504.65. Bears need UTIL below 504.65. The SPX is sticky at 1796 S/R and will likely move whichever way the utilities dictate.

2/14/14; 10:00 AM EST =

2/10/14; 12:17 PM EST = +0; signal line is -10

2/10/14; 10:48 AM EST = +16; signal line is -11

2/9/14; 7:00 PM EST = +0; signal line is -13

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the new week of trading. The bulls need XLF 21.38, UTIL 504.65, VIX 14.20 and/or JJC 40.02. Any parameter switching to the bull side (all four are currently causing market negativity) will send the SPX above 1800 and higher. The bears need GTX 4780 and/or UTIL 495.50 to stop the upside market momo. Both of these parameters are currently creating market bullishness. If all 5 parameters remain status quo, the markets will stagger sideways.

For the SPX starting at 1797, the bulls only need one single point, to push above 1798, to continue an upside thrust well above 1800. The bears need to retrace Friday's large upside move to regain mojo, a difficult task, so instead, bears will focus on pushing commodities and utilities lower, volatility higher, and financials and copper lower. A move through 1777-1797 is sideways action. Since the bulls only need one point higher to create another upside acceleration, the overnight futures are important. Any hint of green in the S&P futures will likely send the SPX to 1808-1809 on Monday. Therefore, the bears must keep the overnight futures negative to stop the upside market move.

The XLF is within pennies of the 21.38 bull-bear line in the sand so use this as a key metric when the opening bell rings. If XLF moves above 21.38, the broad indexes will continue strongly higher. If the bears hold the line at XLF 21.38, the upside move will likely stall. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are driving the bus and will run over the bears with XLF 21.38. Market bears must prevent XLF 21.38 with all their might. XLF begins at 21.29. Check the trading direction of the large banks pre-market and that will likely provide the early market direction answer and set the market tone. Markets remain erratic and highly unstable.

2/16/14; 7:00 PM EST =

2/14/14; 10:00 AM EST =

2/9/14; 7:00 PM EST = +0; signal line is -13

2/7/14; 9:00 AM EST = +0; signal line is -13

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long through the weekend. The bulls create a strong upside orgy the last couple days, however, bulls are not yet able to achieve UTIL 504.65 or XLF 21.38 to confirm continued and stronger upside. The algo is fixated on utilities, financials, copper and volatility currently and all four will impact market direction come Monday. Levels and areas of interest can be identified once the Sunday pre-scheduled number prints.

2/9/14; 7:00 PM EST =

2/7/14; 9:00 AM EST = +0; signal line is -13

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The status is quo with GTX and SOX running higher and UTIL buoyant although the bulls are not yet able to achieve 504.65. The algo is now tracking XLF 21.40 and JJC 40.02. Both are bearish so bulls will receive upside fuel with either one of these parameters, or UTIL 504.65. Bulls need UTIL 504.65 by the closing bell otherwise, the bears will have a small advantage come Monday morning. The bulls will receive confirmation for the upside rally if either financials, copper and/or utilities achieve the bull targets listed. The bulls are trying to cruise into the weekend. Bears are fighting to keep utilities weak.

2/9/14; 7:00 PM EST =

2/7/14; 9:00 AM EST = +0; signal line is -13

2/6/14; 10:32 AM EST = +0; signal line is -14; go long 1767; (Benchmark SPX for 2014 = -3.8%)(Keybot this trade = +0.0%; Keybot for 2014 = +0.0%)(Actual this trade = -0.1%; Actual for 2014 = -1.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Monthly Jobs Report number tomorrow morning. Utilities, semiconductors and commodities are controlling market direction currently. Watch UTIL 504.65 and 495.50, SOX 523.92 and GTX 4776. Bulls need to push UTIL above 504.65 before the closing bell and this signals that an upside rally is fully sustainable. Bears need to push either UTIL under 495.50, SOX under 523.92 or GTX under 4776, or they got nothing.

For the SPX starting at 1773, the bulls only need one single point, to push up through 1774, and the upside will accelerate to test 1781. The bears need to retrace today's large upside move, a formidable task, so instead, the bears will focus on pushing utilities, semi's and commodities lower to create negativity. A move through 1754-1773 is sideways action. Markets are highly erratic and unstable.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/6/14; 10:32 AM EST = +0; signal line is -14; go long 1767; (Benchmark SPX for 2014 = -3.8%)(Keybot this trade = +0.0%; Keybot for 2014 = +0.0%)(Actual this trade = -0.1%; Actual for 2014 = -1.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 1767 as the Thursday rally continues. Commodities and semiconductors supply the bull fuel. SOX jumps above 423.89 which creates further market bullishness. The bears need GTX 4776, SOX 423.89 and/or UTIL 495.50; any one of the three would stall the upside. The last trade is dead flat for the algorithm program and the actual trading. Keybot cycles out of SDS and into QLD.

As always, stay alert for a whipsaw back to the short side today or tomorrow. The three parameters above will provide a heads-up if the whipsaw is in play. The bulls are driving the bus again but the caution flag remains out. Commodities, semiconductors and utilities are dictating market direction currently.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/6/14; 10:32 AM EST = +0; signal line is -14; go long 1767; (Benchmark SPX for 2014 = -3.8%)(Keybot this trade = +0.0%; Keybot for 2014 = +0.0%)(Actual this trade = -0.1%; Actual for 2014 = -1.3%)

2/6/14; 10:22 AM EST = +0; signal line is -14 but algorithm remains short

2/6/14; 9:36 AM EST = -16; signal line is -13

2/4/14; 9:36 AM EST = -30; signal line is -11

2/3/14; 3:50 PM EST = -44; signal line is -9

2/3/14; 3:36 PM EST = -30; signal line is -6

2/3/14; 3:01 PM EST = -44; signal line is -4

2/3/14; 11:49 AM EST = -30; signal line is -1

2/3/14; 10:48 AM EST = -14; signal line is +1

2/3/14; 10:16 AM EST = +2; signal line is +3; go short 1768; (Benchmark SPX for 2014 = -4.3%)(Keybot this trade = -1.3%; Keybot for 2014 = +0.0%)(Actual this trade = -3.2%; Actual for 2014 = -1.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short but the bulls are making a run. GTX leaps up over 4776 into the bull camp creating upside market fuel. UTIL and NYA remain higher even though UTIL dropped to the trap-door at 495.50 again and recovered. The algo is fixated on semiconductors. Watch SOX 523.89. Price already poked up through but could not hold as yet. If SOX overcomes 523.89, and the SPX prints above 1764.25, and both remain above, Keybot will likely flip long.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/6/14; 9:36 AM EST = -16; signal line is -13

2/4/14; 9:36 AM EST = -30; signal line is -11

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short motoring along today without printing any numbers. The 1744 failed so the acceleration to 1737 occurs, however, the status was quo with the 4 parameters, hence, price recovered and markets float along sideways. Same dealio for Thursday. Bulls need GTX 4776 and/or SOX 523.89. Amazingly, the algo came up to GTX 4776 directly, and failed lower. Bears need UTIL 495.50 and/or NYA 9750. Amazingly, both parameters came down to violate their bull-bear danger levels but both recovered. UTIL 495.50 is a trap-door that can easily cause equities to drop into free fall. One of these 4 parameters tomorrow will flinch and the markets will follow that leader.

For the SPX starting at 1752, the bulls need to touch the 1756 handle and the upside will accelerate into the 1760's. The bears need to push under 1738 and the downside will accelerate to the 1720's. A move through 1739-1755 is sideways action. The bears are driving the bus. If the bulls can send both GTX and SOX above their levels listed, and the SPX above 1756, and all remain above, Keybot would likely flip to the long side.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/4/14; 9:36 AM EST = -30; signal line is -11

2/3/14; 3:50 PM EST = -44; signal line is -9

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. NYA recovered above 9750 creating bull fuel. For the Wednesday session, the bulls need GTX 4776 and/or SOX 523.89 and the relief rally will continue higher. If both flip bullish, Keybot would be in position to flip long. The bears need UTIL 495.50 and/or NYA 9750 to reinstate the market selling. If all 4 parameters remains status quo, markets float along sideways.

For the SPX starting at 1755, the bulls need to touch the 1759 handle and the upside will accelerate. The bears need to push under 1744 to accelerate the downside. A move through 1745-1758 is sideways action. The bears continue steering the ship in these treacherous markets. One of the above 4 parameters will flinch and send markets in that respective direction. The caution flag remains hidden but if GTX or SOX turn bullish, the caution flag will return and if both parameters turn bullish, the imminent turn status will return.

2/9/14; 7:00 PM EST = 
2/7/14; 9:00 AM EST = 
2/4/14; 9:36 AM EST = -30; signal line is -11 
2/3/14; 3:50 PM EST = -44; signal line is -9

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is on the short side. The markets took the pipe yesterday with the Nasdaq dropping triple digits the biggest daily loss ever. A very serious market failure occurred yesterday afternoon with the NYA losing the 40-week MA at 9750. NYA is at 9741.58. Watch 9750.32. The market selling will stop if the bulls can send NYA above 9750. If the bears keep NYA under 9750, the market carnage will continue. The NYA 40-week MA cross is a very important market cyclical direction signal; above is a cyclical bull market; below is a cyclical bear market.

UTIL lost 506.57 and SOX lost 523.89 creating the majority of the stock market weakness yesterday. The weakness in semiconductors, which continues this morning, is very concerning for global markets. The bears will receive additional fuel if UTIL drops under the 50-week MA at 495.61. This failure opens a trap-door which will likely send equities into free fall.

For the SPX starting at 1742, the bulls need to retrace yesterdays downside move which is highly unlikely. Instead, the bulls soul focus is to move NYA above 9750 since all hope is lost if they cannot. The bears need to push the SPX only a couple points lower under 1740 to accelerate the downside. A move through 1741-1783 is sideways action today. The bears are cruising with the algo number 35 ticks under the signal line so the cation flag is removed, for now. If NYA moves above 9750, the caution flag may reappear since the bulls would be attempting a come back.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/3/14; 3:50 PM EST = -44; signal line is -9

2/3/14; 3:36 PM EST = -30; signal line is -6

2/3/14; 3:01 PM EST = -44; signal line is -4

2/3/14; 11:49 AM EST = -30; signal line is -1

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips back to the short side this morning at SPX 1768. Equities take a strong leg lower as semiconductors and utilities weaken. Bulls need UTIL 506.57 and/or SOX 523.89 to stop the market selling and stabilize the indexes. Bears need NYA under 9750 and another market down leg will occur. Use these three parameters as a guide forward. Keybot cycled out of DDM and entered SDS. The algo program is dead flat on the year so far and the actual trading is down -1% after losing -3% on the last trade. The benchmark SPX is off over -4%. Watch utilities, semi's and the NYA (NYSE Composite). Markets remain erratic and unstable.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/3/14; 11:49 AM EST = -30; signal line is -1

2/3/14; 10:48 AM EST = -14; signal line is +1

2/3/14; 10:16 AM EST = +2; signal line is +3; go short 1768; (Benchmark SPX for 2014 = -4.3%)(Keybot this trade = -1.3%; Keybot for 2014 = +0%)(Actual this trade = -3.2%; Actual for 2014 = -1.2%)

2/2/14; 7:00 PM EST EOM = +2; signal line is +5 but algorithm remains long

1/31/14; 10:00 AM EST = +2; signal line is +6 but algorithm remains long

1/31/14; 9:36 AM EST = +2; signal line is +8 but algorithm remains long

1/30/14; 11:23 AM EST = +16; signal line is +10; go long 1791; (Benchmark SPX for 2014 = -3.1%)(Keybot this trade = +2.0%; Keybot for 2014 = +1.3%)(Actual this trade = +3.7%; Actual for 2014 = +2.0%)