STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as a strong Halloween rally occurs in stocks due to the BOJ providing more easy money. One day is stranger than the next. Copper exploded higher overnight but as the opening bell in the States approached, copper collapses and trades negative. So a boost from JJC does not occur. The JJC 37.15 line in the sand remains in place so the stock market does not receive upside juice from copper. Keep watching this level to see if it confirms the upside, or not. Semi's explode higher and create bullishness but the model had already had the SOX in the bull camp.

Watch VIX 13.94 another oddity today. Volatility collapsed at the opening bell under the 13.94 bull-bear line in the sand, however, immediately ran back into the bear camp. How do you like that? Very odd indeed for such a strong rally. VIX is currently printing 14.42 remaining well above the 13.94 bull-bear line so market bulls will not yet receive juice from lower volatility. For such a strong rally, the expectation is that JJC and VIX would have blown through their lines in the sand but they did not. The bulls are in control but some healthy skepticism is in order for the rally unless the bulls push JJC above 37.15 or VIX under 13.94. The pre-scheduled number prints this morning with the algo number only 20 points above the signal line with the stock market at or near all-time highs. Markets remain very erratic and unstable. 

11/2/14; 7:00 PM EST EOM =

10/31/14; 10:00 AM EST = +46; signal line is +26

10/30/14; 1:11 PM EST = +44; signal line is +22

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the Friday session. The bulls recover on Thursday sending semiconductors higher creating bull fuel in the afternoon. Friday is a battle of copper and semi's. JJC closes at 37.04 a hair away from the 37.16 line in the sand. Bears win if JJC stays under 37.16. Bulls win above and will send the SPX towards 2K. Watch SOX 612.95. Bulls win if SOX stays above 612.95. Bears win below and will send stocks lower if the chips fail.

For the SPX starting at 1995, the bulls need to touch the 2000 handle and bingo, the upside will accelerate several more handles. The bears need to push under 1975 to regain their mojo and accelerate lower. A move through 1976-1999 is sideways action to end the week. The bears were threatening today and many traders were likely caught in a bear trap at SPX 1975-ish and then the SPX rallied over 20 handles intraday.

NYA is above the 10648 line in the sand (40-week MA) which is a deadly blow to bears for the weeks and months ahead. Bears need to focus on keeping copper lower and making semiconductors fail; then they can set their sights on NYA 10648 to right the bear ship. Bulls only need higher copper to party into the weekend perhaps with a 2 handle on the SPX. Watch the overnight copper futures. Basically, for Friday, as copper goes, so goes the stock market. The caution flag is taken down until the bears can flex their muscles again. The algo number is 22 points above the signal line so the bulls remain in good shape. Listen for any semiconductor news overnight.

10/31/14; 10:00 AM EST =

10/30/14; 1:11 PM EST = +44; signal line is +22

10/30/14; 11:03 AM EST = +28; signal line is +20

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long and the algo is very active today printing five numbers thus far. The JJC (copper) failure occurs as previously highlighted. The model slipped negative at 10:47 AM EST but the bulls are fighting back. Note the collapse in semiconductors taking out the SOX 612.75 bull-bear line in the sand. This creates market negativity but the bulls pump NYA higher above the 10647 bull-bear line in the sand to maintain market buoyancy. The fight at NYA 10647 will tell you market direction today. Price is now at 10654 only seven points above.

The caution flag is out again, however, even with NYA failing, Keybot will likely not flip short unless the SPX loses the 1969 level. Markets are erratic and unstable. SOX 612.75 (price now below causing bearishness in stocks) and NYA 10647 (price now above causing bullishness in stocks) provides the market direction answer today. Obviously, if you are bullish you need semiconductors to recover today. If bearish, you want to see NYA fail which will cause the broad indexes to sell off.

10/31/14; 10:00 AM EST =

10/30/14; 11:03 AM EST = +28; signal line is +20

10/30/14; 10:47 AM EST = +14; signal line is +18 but algorithm remains long

10/30/14; 10:23 AM EST = +30; signal line is +16

10/30/14; 10:13 AM EST = +14; signal line is +14 but algorithm remains long

10/30/14; 9:36 AM EST = +30; signal line is +12

10/29/14; 3:59 PM EST = +46; signal line is +10

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the Thursday session. Watch the NYA 10647 level with price a hair below giving the market bears the nod. Isn't it amazing how the algorithm can identify these key levels before they occur? The stock market will move higher if the NYA prints above 10647 and will move lower if the NYA remains under 10647. Copper is also key; the JJC 37.16 level. Note how JJC sunk lower closing at 37.19 waiting for today to decide direction. Again, isn't it amazing how Keybot can identify these levels ahead of time? The stock market will move higher if JJC stays above 37.16 and will move lower if JJC drops under 37.16. At this writing about 2-1/2 hours before the opening bell, copper is collapsing over -1% and S&P futures are -9. JJC will fail after the opening bell providing bear fuel.

For the SPX starting at 1982, the bulls need to push above 1991 to accelerate the upside. The bears need to push under 1969 to accelerate the downside. Even with the weak futures, the projected drop in the SPX would only be around 1972-ish. The market bears will need several more points to create a strong downside slide. A move through 1970-1990 is sideways action.

The bulls are driving the bus but the bears are fighting back after receiving a beating during the last couple weeks. Copper should fail today which provides downside market juice. It is not enough to flip the model to the short side. The algo is tracking semiconductors; SOX 613. SOX price is at 624 well above the 613 bull-bear line in the sand and the market bears probably need this to fail for the algo to be in position to flip to the short side.

11/2/14; 7:00 PM EST EOM =

10/31/14; 10:00 AM EST =

10/29/14; 3:59 PM EST = +46; signal line is +10

10/29/14; 3:46 PM EST = +60; signal line is +7

10/29/14; 2:05 PM EST = +46; signal line is +3

10/29/14; 1:58 PM EST = +60; signal line is -0

10/29/14; 1:45 PM EST = +46; signal line is -3

10/28/14; 3:06 PM EST = +60; signal line is -6

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bears are slapped in the face during a late session melt-up. The NYA moves above the 10646 line in the sand (40-week MA) which signals a cyclical bull market ahead crushing the bear's hope for extended downside. The bulls bludgeoned the bears today using copper and semiconductors early in the day and the NYA above the 40-week MA to unleash the market melt-up during the last hour of trading. 

NYA 10646 is key at the opening bell for Wednesday and the bears must send the NYA under 10646 as soon as possible, otherwise, the SPX will be headed to 2000+. Also watch copper in overnight trading since the bears need to push JJC under 37.16 (now at 37.38 creating bullishness in stocks). A 22 cent drop is -0.6% so this is the magic percentage that bears need to see copper drop by overnight. The algo is also tracking volatility. Watch VIX 13.96 (now at 14.52 creating negativity). If VIX drops under 13.96 the SPX will explode higher above 2000.

For the SPX starting at 1985 closing at the highs in the Tuesday session, the bulls only need a smidge of green in the futures since this will accelerate the upside several handles through the strong 1985-1986 strong resistance and target 1998. So watch to see if the overnight S&P futures are positive, or not. The bears need to push under 1964 to regain their mojo, a formidable task, so at the same time bears will focus on beating copper lower overnight as well as sending the NYA and semiconductors lower. A move through SPX 1965-1984 is sideways action for Wednesday.

The bears were beaten severely Tuesday and will have to fight back on Wednesday. The bears need NYA 10646 and/or JJC 37.16 when the opening bell rings, otherwise, the bears will have to bend over and receive further beatings. The bulls are cruising with the algo number 66 points above the signal line.

10/31/14; 10:00 AM EST =

10/28/14; 3:06 PM EST = +60; signal line is -6

10/28/14; 10:00 AM EST = +46; signal line is -8

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bulls slap the bears in the face with higher copper from the get-go. JJC is above the 37.16 bull-bear line in the sand creating upside thrust. Semi's head higher creating more bull joy. The algo number is now 54 points above the signal line with the bulls cruising without a care in the world.

Bulls receive more upside juice with stronger copper and semi's and NYA moving above 10650. Bears need to push JJC under 37.16 as soon as possible or they got nothing so pay attention to copper today.

10/31/14; 10:00 AM EST =

10/28/14; 10:00 AM EST = +46; signal line is -8

10/28/14; 9:36 AM EST = +41; signal line is -11

10/27/14; 2:13 PM EST = +25; signal line is -14

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long and the aglo is very active printing five numbers to begin the new week of trading. Despite the flat move in the broad indexes in Monday trading, the bulls have strongly boosted their push higher for equities. In the afternoon, the SOX (semiconductors) moves above the 612.95 bull-bear line in the sand identified by Keybot which guarantees buoyancy in markets. Bears will need to push SOX under 612.95 to stop the upside rally, otherwise, they got nothing.

The bulls are very close to creating further upside strength. Copper trades higher this morning which will send JJC higher. The bull-bear line in the sand is JJC 37.16 with price beginning at 37.00. Equities will move strongly higher if JJC moves above 37.16 only sixteen pennies away. The bulls will also receive strength if NYA moves above 10650. So its all going the bulls way for the last couple weeks.

For the SPX starting at 1962, the bulls need to touch the 1965 handle and this will create an upside acceleration. S&P futures are +10 at this writing about three hours before the opening bell easily able to punch up through the 1965. The bears need to push under 1951 to accelerate the downside. A move through 1952-1964 is sideways action but will only occur if semiconductors are weak today.

The bulls are cruising with the bears locked in the trunk. SOX under 612.95 will stop the upside rally, otherwise, equities will continue floating higher. Keybot prints a pre-scheduled number one-half hour after the opening bell.

10/31/14; 10:00 AM EST =

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

10/27/14; 2:13 PM EST = +25; signal line is -14

10/27/14; 1:46 PM EST = +9; signal line is -15

10/27/14; 12:41 PM EST = +25; signal line is -16

10/27/14; 11:42 AM EST = +9; signal line is -18

10/27/14; 11:25 AM EST = +25; signal line is -18

10/26/14; 7:00 PM EST = +9; signal line is -20

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long moving into the new week of trading. Monday begins with a fight between semiconductors and financials. The algo is focusing on the chips as the major determinant in broad market direction; the SOX 612.93 line in the sand. The SOX begins at 612.05 so if the semi's overtake the 612.93 level, less than one point away, the bulls will catapult markets higher and not look back. Watch XLF 22.90. XLF begins at 23.10 causing bullishness so market bears need weaker banks and the XLF under 22.90 to get their downside mojo back. Also watch NYA 10635 which would signal a far higher stock market going forward. If NYA remains under 10635, equities should weaken over time and roll back over to the downside.

For the SPX starting at 1965, the bulls only need to see a smidge of green in the overnight futures and the upside party continues with a several handle acceleration higher. The bears need to push the SPX under 1946 to regain their mojo. A move through 1947-1964 is sideways to begin the week. Bulls win with SOX 612.93. Bears win with XLF 22.90. Chips and financials rule the roost so listen for any news on semicondutors and banks. Keybot prints two pre-scheduled numbers this week one on Tuesday and one on Friday.

11/2/14; 7:00 PM EST EOM =

10/31/14; 10:00 AM EST =

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

10/26/14; 7:00 PM EST = +9; signal line is -20

10/24/14; 9:36 AM EST = +9; signal line is -21

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the weekend. The financials, XLF, leap above 22.89 at the opening bell, so voila, the fix was in, and the bulls sent the broad indexes higher. The algo is now tracking semiconductors, financials, the NYA Index and copper. It appears the chips, SOX, will be the key influence on market direction at Monday's opening bell. The areas and levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow. The bulls are cruising.

10/26/14; 7:00 PM EST =

10/24/14; 9:36 AM EST = +9; signal line is -21

10/23/14; 3:59 PM EST = -7; signal line is -22

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The bears fight back late in the session sending the XLF down to 22.88 one penny under the critical 22.89 line in the sand identified by the algo. Isn't it amazing that Keybot can identify these key levels before they occur? So the pivot with financials will determine market direction from the get-go on Friday. Higher banks and higher stocks; lower banks and lower stocks. The bears likely need weaker retail stocks (RTH to move under 62.00) to place the model in a position to go short.

For Friday with the SPX starting at 1951, the bulls need to touch the 1962 handle and a strong upside acceleration will occur. The bears need to push under 1931 to accelerate the downside. The S&P futures are -11 on Thursday evening in the States dropping due to a confirmed Ebola infection in New York City. A move through 1932-1961 is sideways action for Friday.

10/26/14; 7:00 PM EST =

10/23/14; 3:59 PM EST = -7; signal line is -22

10/23/14; 10:20 AM EST = +9; signal line is -22

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The algo prints a number to begin the day sending the bulls 31 points above the signal line and cruising higher. Watch the XLF 22.89 bull-bear line in the sand. XLF moves above this morning creating the strong bull fuel enabling equities to print at the highs today. The day will finish strong if XLF moves higher above 23 and higher. If XLF leaks lower and drops back under 22.89, the stock market will leak lower. The bulls are in charge. XLF is 22.97 now eight cents above the 22.89 bull-bear level so the bears are getting slapped around. The SPX should run to the 1958 resistance and if that gives way the 1960-1961 R level is next.

10/26/14; 7:00 PM EST =

10/23/14; 10:20 AM EST = +9; signal line is -22

10/22/14; 12:21 PM EST = -7; signal line is -22

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The algo prints two numbers today around lunch time. The financials, XLF, punched up through 22.90 but could not hold it and once the banks rolled over the broad market followed along lower. XLF 22.90 remains key. Also SPX 1897. Bulls need to move the XLF above 22.90 to continue the upside party. Bears need to push the SPX under 1897 to increase the selling pressure. Weaker retail and utility stocks will also help bears.

For the SPX starting at 1927, the bears need any smidge of negativity and the downside will accelerate. Watch the overnight S&P futures. The bulls need to retrace today's down move to 1949 to regain their mojo. This is a difficult task so bulls will focus on boosting financial stocks. A move through SPX 1928-1948 is sideways action for Thursday. The bulls remain comfortably in control.

10/26/14; 7:00 PM EST =

10/22/14; 12:21 PM EST = -7; signal line is -22

10/22/14; 11:27 AM EST = +9; signal line is -22

10/21/14; 9:36 AM EST = -7; signal line is -23

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bulls slap the bears silly from start to finish in the Tuesday session. The algo printed one number gaining strength up to -7. RTH exploded higher at the opening bell and an upside party followed; the biggest day of the year for equities. For the Wednesday session, it appears the algo is most focused on financials. Watch XLF 22.90 as the bull-bear line in the sand. XLF begins at 22.87 only three pennies on the bear side. If XLF stays under 22.90 and leaks lower, the upside broad market rally will stall and the broad indexes will flatten out sideways with a downward bias. If XLF moves above 22.90, only three pennies away, the stock market will explode into a sustainable and extended upside move and the bears will be toast.

For the SPX starting at 1941, the bulls only need to push above 1942.50 less than two points higher and an upside acceleration will occur to 1951. So watch to see if the S&P futures hand the bulls a couple points overnight, or not. The bears need to retrace Tuesday's large up move, a formidable task, so instead the bears will focus on pushing financials and semiconductors lower. If either XLF or SOX, respectively, moves higher, the bears will fold like a cheap suit. The bulls are driving the bus and they ran over a few bears today. For Wednesday the financials, the pivot from XLF 22.90, will determine the broad market direction forward. Watch it like a hawk and listen for any news, good or bad, concerning the banks.

10/26/14; 7:00 PM EST =

10/21/14; 9:36 AM EST = -7; signal line is -23

10/20/14; 2:12 PM EST = -23; signal line is -24; go long 1900; (Benchmark SPX for 2014 = +2.8%)(Keybot this trade = +2.2%; Keybot for 2014 = +8.9%)(Actual this trade = +2.3%; Actual for 2014 = +9.7%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side this afternoon shortly after 2 PM EST at SPX 1900. Utilities powered higher after the opening bell this morning so the fix was in for higher markets. The SPX moved steadily higher from start to finish following the game plan for the bulls laid out this morning. Utilities rocket higher then the SPX overtook the 1895 which provided bull juice. Price then moved above 1898 so an upside acceleration was on tap and Keybot went long at 1900. Price ran higher to close at 1904 one-point off the HOD at 1905.03. As always, stay alert for a whipsaw.

The Keybot the Quant algorithm computer program gained +2.2% on the last trade and the actual trading gained +2.3%. The benchmark SPX is up +3% this year with Keybot's actual trading up nearly +10% (this is the actual return allowing for all commissions, fees and any mechanical inefficiencies). Keybot exited DOG and entered DIA.

The algo is tracking the retail sector and the SPX 1895 level as the two key influences on market direction for Tuesday. Watch RTH 61.95. The RTH begins at 61.82 only 13 cents away from the bull-bear line in the sand that will guarantee bull victory ahead. The bears need to prevent RTH 61.95 with all their might. If RTH 61.95 gives way to the upside, the bears will fold like cheap suit. So listen closely for any retail news. The bears need to push the SPX under 1895 or they got nothing.

For the SPX starting at 1904, the bulls only need one point, to push up through 1905, and an upside acceleration will occur. Watch the overnight S&P futures to see if the bulls plan to continue the party by printing one positive point or more. The bears need to push under 1882 to get their mojo back a formidable task, so instead bears will focus on keeping RTH sub 61.95 and sending SPX under 1895. A move through 1883-1904 is sideways action for Tuesday.

10/26/14; 7:00 PM EST =

10/20/14; 2:12 PM EST = -23; signal line is -24; go long 1900; (Benchmark SPX for 2014 = +2.8%)(Keybot this trade = +2.2%; Keybot for 2014 = +8.9%)(Actual this trade = +2.3%; Actual for 2014 = +9.7%)

10/20/14; 1:23 PM EST = -23; signal line is -24 but algorithm remains short

10/20/14; 12:34 PM EST = -37; signal line is -24

10/20/14; 12:06 PM EST = -23; signal line is -23 but algorithm remains short

10/19/14; 7:00 PM EST = -37; signal line is -22

10/17/14; 12:15 PM EST = -37; signal line is -20

10/17/14; 11:37 AM EST = -23; signal line is -19

10/17/14; 10:00 AM EST = -36; signal line is -18

10/17/14; 9:00 AM EST = -37; signal line is -17

10/16/14; 10:35 AM EST = -37; signal line is -15

10/16/14; 9:47 AM EST = -53; signal line is -14

10/14/14; 12:56 PM EST = -37; signal line is -12

10/14/14; 12:24 PM EST = -21; signal line is -11

10/14/14; 12:22 PM EST = -7; signal line is -11 but algorithm remains short

10/14/14; 11:48 AM EST = -23; signal line is -11

10/13/14; 3:24 PM EST = -37; signal line is -12

10/13/14; 1:51 PM EST = -23; signal line is -12

10/13/14; 12:32 PM EST = -7; signal line is -12 but algorithm remains short

10/13/14; 9:52 AM EST = -23; signal line is -13

10/13/14; 9:36 AM EST = -7; signal line is -12 but algorithm remains short

10/12/14; 7:00 PM EST = -23; signal line is -12

10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the new week of trading. As the prior post mentions, Monday's fight is between UTIL 599.43 and SPX 1895. If UTIL remains above 559.43 and SPX under 1895, then equities stumble along sideways all day. If UTIL fails at 599.43, equities will take a leg lower. If SPX moves above 1895, the relief rally is gaining strong steam and durability and Keybot will likely flip long above 1898.

For the SPX starting at 1887, the bulls need to move above 1898 to lock in an upside acceleration and sustainable recovery rally. The bears need to push under 1865 to create a downside acceleration. A move through 1866-1897 is sideways action. S&P futures are flat well off the +12 highs last evening. The bears are in control to begin the week. UTIL 599.43 and SPX 1898 should determine market direction as described above. Keybot does not print any pre-scheduled numbers this week.

10/26/14; 7:00 PM EST =

10/19/14; 7:00 PM EST = -37; signal line is -22

10/17/14; 12:15 PM EST = -37; signal line is -20

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the weekend. UTIL is at 562.56 above the critical 559.43 bull-bear line in play for all of next week so this helps the bulls maintain elevated equities when the Monday bell rings. The bulls took out the important SPX 1895 line in the sand in Friday trading but retreated back under to help the bears. If the bulls overtake 1895 again, it will probably be enough to flip the algo long. The areas and levels of interest for Monday can be identified once the Sunday pre-scheduled number prints tomorrow. Looks like Monday will be a fight between the SPX 1895 that bulls need and the UTIL 599.43 that bears need. The caution flag is out since the bulls may try to continue the rally early next week.

10/19/14; 7:00 PM EST =

10/17/14; 12:15 PM EST = -37; signal line is -20

10/17/14; 11:37 AM EST = -23; signal line is -19

10/17/14; 10:00 AM EST = -36; signal line is -18

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the upside market orgy plays out. SPX is above 1892 gaining nearly 30 points so far today. The SPX key level to watch is 1895 only three points away. Bulls will receive substantial juice to easily push the SPX above 1900 if price moves above 1895.

UTIL is at 561 launching higher after teasing the 554.27 level three times over the last day and this morning teasing the 559.53 twice before price just popped up through. Many algorithms follow the 15-week look-back technique described in the previous post and that is clearly visible by the exact price action at these levels. Watch UTIL 559.53 and SPX 1895. For now, the rally is the dead-cat variety, but if the SPX moves above 1895 during the session or the UTIL closes above 559.53 at the end of the day, this will create market lift today and come Monday and sustain the market buoyancy.

10/19/14; 7:00 PM EST =

10/17/14; 10:00 AM EST = -36; signal line is -18

10/17/14; 9:00 AM EST = -37; signal line is -17

10/16/14; 10:35 AM EST = -37; signal line is -15

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short moving into the last trading day of the week. S&P futures are up a large +26 as global traders sniff out unlimited central banker stimulus. Utilities are the most important sector to watch today. As previously mentioned, the UTIL 554.27 bull-bear line in the sand is important until the closing bell where it will be replaced with 559.43 for all of next week. If UTIL drops under 554.27 today, that should weaken equities but with the robust futures this is likely not on tap. Instead focus on the UTIL 559.43 bull-bear line in the sand applicable for each day next week and UTIL begins at 558.94 this morning. Thus, if UTIL closes the day where it is now (under UTIL 559.43) it will cause market weakness next week. If UTIL moves above and closes above 559.43 today, that will create broad market bullishness come Monday morning.

Watch the SPX 1893 line in the sand. If the SPX feels the same love as the overnight futures, the SPX should jump to the 1888 resistance and then plot a move to 1893 to lock-in extended market bullishness and a solid relief rally ahead. For the SPX stating at 1863, the bulls need to push up through 1876 and that will accelerate the upside, which appears to be on tap. The bears need to push under 1835 to regain their downside mojo, a formidable task, so instead bears will focus on smashing utility stocks lower. A move through 1836-1875 is sideways action today, but again, an upside orgy appears on tap. The bears are in full control so the strength after the opening bell will be interesting to see how much it can boost the bull case. Keybot prints two pre-scheduled numbers this morning one before the bell and one after the bell. Watch UTIL 559.43 especially this afternoon.

10/19/14; 7:00 PM EST =

10/17/14; 10:00 AM EST =

10/17/14; 9:00 AM EST =

10/16/14; 10:35 AM EST = -37; signal line is -15

Note: A reader asked about why lower utilities would be bad for stocks since typically a flight to safety occurs into divvy and defensive stocks during an economic downturn or general economic malaise. This is true but you must compartmentalize the major market techniques such as fundamental trading, technical trading and algorithmic trading. Keybot is an algo so all it sees is 1's and 0's. In general, weakness in any sector typically leads to broad market weakness. In the short term the effect in the first sentence may hold, but over the longer term it will not. The defensive plays such as utes and consumer staples will hold up better in a market downturn but they still go down; they simply go down a little bit less than other sectors. Getting back to the algo, after years of operation a very interesting facet surfaced with the algo; the ability to identify key sectors and other parameters that most greatly effect market direction in the very near term. This simply turned out to be something that came to be as the data was assessed and has turned into an excellent tool to aid trading. The only reason that utilities are important now is because the algo says they are important; no other reason. In a couple weeks, the algo may consider utes to not be important at all and they may sit in the background for weeks or months. Currently, however, the utes are key and the UTIL 559.43 number for all of next week is very important. As an aside, and has been mentioned in the past many times, the utility parameter can be followed by you independently. Go to YHOO and bring up the historical data for the Dow Jones Utilities (^dju). Go to weekly data and count back 15 weeks. The utilities are in a weekly uptrend if price closes each week above the closing price 15 weeks prior. This is an old-time indicator that young and novice traders are not aware of. The ole-timer's watch it closely and it has its roots at the very core of technical analysis and Norman G Fosback's work decades ago. As long as the weekly trend for utes is up the broad market is happy. If utes fall into a weekly down trend then there is big trouble ahead for equities. The 15-week look back number is currently at UTIL 554.27 ending today and 559.43 for next week. Keystone discusses the techniques for utilities in more detail on his site The Keystone Speculator so reference that site and type 'UTIL' in the search box in the right margin. Bring up those prior charts and articles to better understand the above.

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. UTIL failed at 554.27 this morning creating further stock market weakness but then recovered. Watch both 554.27 and the critical 559-ish for next week as previously explained. UTIL will tell you a lot at 4 PM tomorrow afternoon depending on where it closes in relation to 559.43. There you go; current price for UTIL is 559.49 already knowing that this level is a big battle area for the next week. Equities will sell off if UTIL drops under 554.27. If UTIL stays above then equities will float along sideways to sideways higher. The bears remain in firm control.

10/17/14; 9:00 AM EST =

10/16/14; 10:35 AM EST = -37; signal line is -15

10/16/14; 9:47 AM EST = -53; signal line is -14

10/14/14; 12:56 PM EST = -37; signal line is -12

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish. The bulls were bludgeoned today but did stage a comeback late in the day. The algo motored along all day and did not print any numbers. The algo is tracking UTIL 554.27 and SPX 1893 as the two top priorities in this circus type market. UTIL 554.27 is important for the next two days and then for the two following weeks UTIL 559-ish is key. This sets up an interesting path forward. It is amazing how the algo always identifies interesting things to watch.

The current price for UTIL is 558.64 four points above the bull-bear danger line at 554.27 but note that for the two following weeks price is under the 559-ish. This means the utilities will create market weakness next week and moving forward. So not only watch the UTIL 554.27 today and tomorrow but be aware of where price is in relation to 559-ish. If UTIL drops lower, especially under 554.27, markets take another big leg lower. If UTIL remains steady and floats higher and ends the week above 559-ish it will be all systems go for the bulls next week.

Bulls will create a sustainable rally if they can move SPX above 1893. Bulls got absolutely nothing if they cannot move above SPX 1893. For the SPX starting at 1862, the bulls need to touch the 1874 handle and bingo, the upside will accelerate. The bears need to push under 1821 to regain their mojo, a formidable task, so instead bears will try to beat the utility stocks lower. A move through SPX 1922-1873 is sideways action for Thursday. The circus continues. Utilities are important and they typically move with rates. So higher yields should weaken UTIL and lower yields should send UTIL higher so this will give you a heads-up overnight if you watch what direction rates are moving in.

10/19/14; 7:00 PM EST =

10/17/14; 10:00 AM EST =

10/17/14; 9:00 AM EST =

10/14/14; 12:56 PM EST = -37; signal line is -12

10/14/14; 12:24 PM EST = -21; signal line is -11

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Wednesday session. The algo was active on Tuesday printing four numbers and potentially flipping Keybot long but the bulls did not have enough juice. The markets prefer to leak lower but four parameters may create market lift in order of importance; JJC 37.48; SPX 1894.50; RTH 62.13 and XLF 23.02. Any of these four will create bullishness. If 2 of the 4 turn bullish, and the SPX moves above 1899, Keybot will likely go long. JJC is copper so the direction of copper overnight will provide a heads-up on the path ahead.

For the SPX starting at 1878, the bears need to push under 1872 and a downside acceleration will occur. The bulls need to push above 1899 to accelerate the upside. A move through 1873-1898 is sideways action.

10/17/14; 10:00 AM EST =

10/17/14; 9:00 AM EST =

10/14/14; 12:56 PM EST = -37; signal line is -12

10/14/14; 12:24 PM EST = -21; signal line is -11

10/14/14; 12:22 PM EST = -7; signal line is -11 but algorithm remains short

10/14/14; 11:48 AM EST = -23; signal line is -11

10/13/14; 3:24 PM EST = -37; signal line is -12

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the stock market gives up the ghost collapsing through key support levels. The algo was active today printing five numbers. Continue watching UTIL 554.27. UTIL is above here all day long which helped create market lift today. However, this positivity was smacked in the face by retail stocks and the SPX. Watch RTH 62.13 which failed today causing negativity in equities. Also watch SPX 1895 as a key bull-bear line in the sand. Bears need UTIL under 554.27 and the stock market will collapse another leg lower. Bulls need either RTH above 62.13 and/or SPX above 1895 to create a relief rally.

For the SPX starting at 1875, the bears only need a smidge of red in the overnight S&P futures and another several-point acceleration lower is on tap. The bulls need to push above 1912 to regain their mojo, a difficult task, so instead the bulls will concentrate on keeping utilities, retail stocks and the SPX moving higher especially the SPX above 1895 which will create a stability and buoyancy to markets going forward. The bears are in charge.

10/17/14; 9:00 AM EST =

10/13/14; 3:24 PM EST = -37; signal line is -12

10/13/14; 1:51 PM EST = -23; signal line is -12

10/13/14; 12:32 PM EST = -7; signal line is -12 but algorithm remains short

10/13/14; 9:52 AM EST = -23; signal line is -13

10/13/14; 9:36 AM EST = -7; signal line is -12 but algorithm remains short

10/12/14; 7:00 PM EST = -23; signal line is -12

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is bearish moving into the new week of trading. Watch UTIL 554.27 as an important bull-bear line in the sand for every day this week. This will provide bulls with strength as Monday begins. The retail sector remains key. Watch RTH 62.13 as the line in the sand. Bulls have RTH at 62.45 comfortably in the bull camp creating broad market lift. Another key level the algo is tracking is SPX 1895 which would create bearish mayhem in markets if it fails.

For the SPX starting at 1906, closing at the lows on Friday, the bears only need a smidge of red in the futures and price will accelerate lower to 1900 and set its sights on a test of the critical 1895-ish mentioned above. So keep an eye on the overnight S&P futures. The broad market may crash and go into free-fall if the 1895 fails, however, check UTIL 554.27 since markets would not accelerate lower without the utes failing. The bulls need to push higher and overcome the 1936-1937 resistance level to signal the all-clear for a sustainable upside recovery rally, a formidable task. Instead, bulls will focus on moving utes and retail stocks higher which will stop the SPX from falling. A move through 1906-1935 is sideways action.

Since utlities remains elevated, the algo number will likely move above the signal line after Monday's opening bell, however, barring a huge upside rally, Keybot willl likely not flip long unless the SPX price overtakes the 1936-1937 level. Keybot prints two pre-scheduled numbers this week both on Friday morning. Will the roller coaster ride continue? UTIL 554.27, RTH 62.13 and SPX 1895 will tell you the answer.

10/19/14; 7:00 PM EST =

10/17/14; 10:00 AM EST =

10/17/14; 9:00 AM EST =

10/12/14; 7:00 PM EST = -23; signal line is -12

10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish through the weekend after a wild unprecedented roller coaster ride last week. The algo did not print any numbers on Friday. UTIL ends at 561.67 above the 554.27 that is a bull-bear line in the sand for all of next week so the bulls receive a feather in their caps and this will create broad market lift on Monday--as long as UTIL remains above 554.27. Retail stocks and the SPX 1895 price level will be key to begin next week. Areas and levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow.

10/12/14; 7:00 PM EST =

10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side as the wild and epic week of trading continues into the Friday session. The algo did not print any further numbers today after the flip back to the short side. The retail, financial and utility sectors are identified by the algo as the key influences on market direction currently. Bulls need to push XLF above 23.11 or they got nothing. Bears need to push RTH under 62.13 or they got nothing. Equities will stumble sideways into the weekend if XLF stays under 23.11 and RTH stays above 62.13.

Monitor utilities tomorrow; the UTIL 554.27 bull-bear line in the sand that remains as a key parameter for every day next week. It does not come into play until the first second of Monday trading, however; at 4 PM EST tomorrow you will know where the UTIL price sits in relationship to 554.27 to begin next week. Price is 558.07 to begin Friday trading. If it closes here the bulls will receive upside juice come Monday. If UTIL closes under 554.27 tomorrow afternoon to end the week, losing about four points from current price, markets are going to tumble lower on Monday morning.

For the SPX for Friday starting at 1928, the bears only need a smidge of red in the futures and a downside acceleration will occur to test the strong 1924 in a heartbeat. If 1924 fails, a move to 1910-1912 is likely. The bulls are simply trying to stop the bleeding and will succeed if they can push the banks higher and move XLF above 23.11, otherwise, equities will float along sideways with a downward bias for Friday. If RTH 62.13 fails, markets will fall down the rabbit hole and SPX 1910-1912 is likely. A move through SPX 1928-1966 is sideways action to end the week. The bears have the ball again. Markets remain highly erratic and unstable as the historic and epic trading action continues.

10/12/14; 7:00 PM EST =

10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

STOCK MARKET BEARISH -- SHORT -- CAUTION; Unprecedented Quadruple Whipsaw

Keybot the Quant flips to the short side triggering at SPX 1943 for an unprecedented quadruple flip this week changing sides each consecutive day; flip long Monday, flip short Tuesday, flip long Wednesday, flip short Thursday. The rareness of this price action cannot be understated. In the entire history of the model and through all back testing and development for about 15 years there has never been a quadruple flip move by the algo. Bulls and bears keep fighting for control. The Dow moves over 200 points intraday for three days in a row and triple digits for 14 of the last 18 days; very intense price action.

The algo is back to tracking a financials versus retail stocks battle. Watch XLF 23.11 and RTH 62.15. XLF is 22.89 causing bearishness. RTH is 62.69 causing bullishness. So bulls need XLF above 23.11 to stop the selling and create another upside rally move. Bears need RTH under 62.15 to accelerate the selling and create market carnage. If status quo exists (XLF under 23.11 and RTH above 62.15), equities stagger along sideways. The bears are driving the bus again. The stock market has become a circus.

For the last one-day trade, the algorithm program and the actual trading each lose -1%. Keybot exited SPY and entered DOG for the current trade.

10/12/14; 7:00 PM EST =

10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

10/9/14; 10:35 AM EST = -23; signal line is -11 but algorithm remains long

10/9/14; 9:36 AM EST = -7; signal line is -11

10/8/14; 3:49 PM EST = +7; signal line is -10

10/8/14; 3:22 PM EST = -7; signal line is -10; go long 1962; (Benchmark SPX for 2014 = +6.2%)(Keybot this trade = -0.6%; Keybot for 2014 = +7.7%)(Actual this trade = -0.6%; Actual for 2014 = +8.3%)

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

Keybot the Quant remains long but the algo is champing at the bit to go short again. Internal parameters are latching but not fully in place to permit the move lower. The algo probably wants to see SPX 1942-ish to flip short. The SPX is at 1953. Keep watching XLF 23.11, which failed, and NYA 10638. Both are causing market negativity.

10/12/14; 7:00 PM EST =

10/9/14; 10:35 AM EST = -23; signal line is -11 but algorithm remains long

10/9/14; 9:36 AM EST = -7; signal line is -11

SPX Daily Chart with Keybot the Quant Algorithm Turns for 2014

Here's an updated SPX chart identifying the Keybot the Quant algorithm turns this year. The trading environment has been difficult for algo's for the last couple years due to the low volume and low volatility. Keybot's actual trading is up +8.3% during 2014 thus far and the SPX benchmark index is up +6.2%. The high for the year and all-time high is 2019. The year started at 1848.

The extremely rare triple whipsaw move occurs over the last three days. The model created 28 turns thus far this year averaging a turn about once every 1-1/2 weeks. Note the long upside rally during June into July. The beat goes on.

10/8/14; go long 1962
10/7/14; go short 1951
10/6/14; go long 1974
9/22/14; go short 2004
9/17/14; go long 2005
9/4/14; go short 1997
8/14/14; go long 1952
7/25/14; go short 1975
7/22/14; go long 1982
7/17/14; go short 1963
5/22/14; go long 1889
5/15/14; go short 1880
4/29/14; go long 1874
4/28/14; go short 1859
4/16/14; go long 1859
4/10/14; go short 1848
4/9/14; go long 1859
4/4/14; go short 1875
4/1/14; go long 1877
3/7/14; go short 1873
2/24/14; go long 1846
2/19/14; go short 1828
2/6/14; go long 1767
2/3/14; go short 1768
1/30/14; go long 1791
1/13/14; go short 1827
1/7/14; go long 1837
1/2/14; go short 1841
1/1/14; model is long to begin the year at 1848

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the roller coaster drama continues. The algo prints a number after the opening bell. The market bears are smiling in relief to see the NYA drop under 10638 (the 40-week MA). XLF 23.11 is a key bull-bear line in the sand and look at price zero-in and wrestle there as this message is typed. A failure at XLF 23.11 and the SPX dropping under 1942 would probably create another whipsaw back to the short side as ridiculous as that sounds. There goes XLF 23.11 failing to the downside. See if the failure remains for 7 to 10 minutes.

10/12/14; 7:00 PM EST =

10/9/14; 9:36 AM EST = -7; signal line is -11

10/8/14; 3:49 PM EST = +7; signal line is -10

Note Added 10:02 AM: XLF recovers upwards to tap the critical 23.11 bull-bear line so continue watching to see it fails, or not. Watch NYA 10638 and XLF 23.11-23.12 as the two key rudders steering the market directional ship today.

STOCK MARKET BULLISH -- LONG -- CAUTION; Unprecedented Triple Whipsaw

Keybot the Quant flips back to the long side this afternoon at SPX 1962 as the scenario described in the previous post plays out. The bears got punched in the face today with XLF and RTH lunging into the bull camp and also the NYA moves up through 10638 a very bullish indication. Market bears need to push NYA under 10638 after the opening bell tomorrow or they are in for pain from here forward; the bulls will rule the markets if NYA stays above 10638 and moves higher. Also watch XLF 23.11 as a bull-bear in line. Bears need financials to fail at XLF 23.11 to regain their mojo.

The wild erratic stock market is historic action. In the history of the model, a triple reversal (flip long Monday, flips short Tuesday, flip long Wednesday) may have happened at most once or twice in the last five years illustrating how erratic and unstable equities are. The algo takes a -0.6% loss with both the algo program and actual trading for the last trade; note how the reduction to single ETF's reduced the trading loss. Keybot exited SH and entered SPY. The algo number is 17 points above the signal line.

For the SPX starting at 1969, the bulls need only one point higher on Thursday, to move above 1970, and an upside acceleration will occur. The bears will try to push XLF and NYA lower focusing like a laser on NYA 10638 which would stop the market upside. A move through SPX 1926-1969 is sideways action. The bulls are driving the bus again. The craziness continues.

10/12/14; 7:00 PM EST =

10/8/14; 3:49 PM EST = +7; signal line is -10

10/8/14; 3:22 PM EST = -7; signal line is -10; go long 1962; (Benchmark SPX for 2014 = +6.2%)(Keybot this trade = -0.6%; Keybot for 2014 = +7.7%)(Actual this trade = -0.6%; Actual for 2014 = +8.3%)

10/8/14; 2:27 PM EST = -7; signal line is -9 but algorithm remains short

10/8/14; 9:36 AM EST = -23; signal line is -7

10/7/14; 3:57 PM EST = -39; signal line is -5

10/7/14; 9:36 AM EST = -23; signal line is -2; go short 1951; (Benchmark SPX for 2014 = +5.5%)(Keybot this trade = -1.2%; Keybot for 2014 = +8.3%)(Actual this trade = -2.4%; Actual for 2014 = +8.9%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short with the market craziness continuing. RTH recovers above 62.13 creating broad market lift today. XLF remains under 23.08 aiding the bears. Equiites will jump higher if XLF moves above 23.08. Bears are fine if they keep XLF under 23.08. If XLF moves above 23.08 and the SPX moves above 1962, Keybot will likely flip to the long side. Bears need RTH under 62.13 which guarantees the downside market path again.

10/12/14; 7:00 PM EST =

10/8/14; 9:36 AM EST = -23; signal line is -7

10/7/14; 3:57 PM EST = -39; signal line is -5

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is on the short side as the erratic week of trading continues. Into the closing bell, the RTH converged on the algorithm's rising line in the sand that is at RTH 62.13. RTH is at 62.12 failing in the final minutes of trading yesterday by one single penny. It is amazing how the algorithm can identify these price points before they occur. The market choppiness will continue as volatility rises in fact the ride may become far more erratic and dramatic if the VIX moves towards 20.

The algo identifies retail and financial sectors as the key drivers of broad market direction currently; watch RTH 62.13 and XLF 23.08. Both are causing bearishness but as mentioned above the RTH is only in the bear camp by one penny. Thus, the retail stocks will dictate market direction at the bell. Bulls win above RTH 62.13 and equities will recover today. Bears win if RTH remains below 62.13 and moves lower. Bulls will also try to move XLF above 23.08 to regain their mojo.

For the SPX starting at 1935, the bears only need a smidge of red in the futures and this will create a continued acceleration lower. S&P futures are +3 about two hours before the opening bell. The bulls will focus on moving RTH above 62.13 since this will stop the broad market selling. A move through SPX 1935-1961 is sideways action today. The bears are in control as the wild market ride continues. RTH 62.13 tells you the market direction answer as the day begins.

10/12/14; 7:00 PM EST =

10/7/14; 3:57 PM EST = -39; signal line is -5

10/7/14; 9:36 AM EST = -23; signal line is -2; go short 1951; (Benchmark SPX for 2014 = +5.5%)(Keybot this trade = -1.2%; Keybot for 2014 = +8.3%)(Actual this trade = -2.4%; Actual for 2014 = +8.9%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips back to the short side at SPX 1951 after the opening bell; the first whipsaw move in many months. The flip to the long side only occurred 24 hours prior. As stated yesterday, markets are erratic and unstable. The key today was the failure in financials and the NYA Index. Both parameters jump into the bear camp but the fight right now is exactly at the XLF 23.12 bull-bear line in the sand.

The algo is tracking financials as the top parameter affecting market direction currently. As this is typed, XLF is making a bounce or die decision at 23.12. Above XLF 23.12 and equities will recover today. Below XLF 23.12 and markets will continue lower. Watch RTH 62.10 as another important line in the sand. RTH is at 62.30 on the bull side by 20 cents creating market lift. Equities will take a strong leg lower if RTH fails from 62.10. The SPX is traveling through a wide 30-point plus range in the last 24 hours.

The algo lost -1.2% on the last trade and the actual trading lost -2.4% over the 24-hour period due to the double-leveraged ETF. Since a whipsaw occurred (a reversal within 10 hours trading time), the algo begins trading single ETF's for the next 35 days to reduce risk. Keybot exited SSO and entered SH. The benchmark SPX is up 5-1/2% this year and the algorithm's actual trading is up +9% almost double.

The bears are driving the bus but watch for another potential whipsaw in these erratic markets. XLF 23.12 dictates the direction of the equity markets right now. Price sits exactly on top of XLF 23.12. Whichever way financials go so go the markets.

10/12/14; 7:00 PM EST =

10/7/14; 9:36 AM EST = -23; signal line is -2; go short 1951; (Benchmark SPX for 2014 = +5.5%)(Keybot this trade = -1.2%; Keybot for 2014 = +8.3%)(Actual this trade = -2.4%; Actual for 2014 = +8.9%)

10/6/14; 1:23 PM EST = +7; signal line is +0

10/6/14; 12:29 PM EST = -7; signal line is +1 but algorithm remains long

10/6/14; 12:08 PM EST = +7; signal line is +3

10/6/14; 11:51 AM EST = -7; signal line is +3 but algorithm remains long

10/6/14; 9:31 AM EST = +7; signal line is +5; go long 1974; (Benchmark SPX for 2014 = +6.8%)(Keybot this trade = +1.5%; Keybot for 2014 = +9.5%)(Actual this trade = +2.0%; Actual for 2014 = +11.3%)

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

Keybot the Quant remains long after an odd erratic day of trading. The NYA is at 10648 only 10 points above the important 10638 bull-bear line in the sand. XLF is 23.21 above the 23.08 bull-bear line in the sand so both the NYA Index and financials are keeping the stock market elevated at this point in time. For Tuesday, the bears need to turn NYA or XLF bearish to receive downside juice, otherwise, they got nothing. If one of these two parameters turn bearish, and the SPX drops under 1958, and stays under, Keybot will likely flip short, so the imminent turn notation is in the title line. If NYA and XLF stay bullish, the stock market will continue floating higher.

For the SPX starting at 1965, the bulls need to touch the 1978 handle, 13 points higher, to accelerate the upside. The bears need to push under 1958, 7 points lower, to accelerate the downside. A move through 1959-1977 is sideways action for Tuesday. The bulls are driving the bus but it is careening down the boulevard out of control running over trash cans, sideswiping cars and jumping curbs. NYA 10638 and XLF 23.08 tells you the market answer tomorrow.

10/12/14; 7:00 PM EST =

10/6/14; 1:23 PM EST = +7; signal line is +0

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the NYA rockets higher over taking the 10638 running to 10650 back in the bull camp. Markets are very erratic and unstable. Watch NYA 10638 as the rudder steering the market directional ship. The beat goes on.

10/12/14; 7:00 PM EST =

10/6/14; 1:23 PM EST = +7; signal line is +0

10/6/14; 12:29 PM EST = -7; signal line is +1 but algorithm remains long

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

Keybot the Quant remains long as a wild and strange day continues. Note that NYA has collapsed, down through the 10638 bull-bear level like a hot knife through butter taking the broad indexes lower. The algo is not permitting a whipsaw back to the short side as yet but if the SPX moves into and down through the 1948-1954 area, Keybot will likely flip short again. This would be a very odd occurrence since, if memory serves, the algo has only whipsawed in the same day twice in its history. Watch NYA 10638. Watch financials; the XLF 23.08 line in the sand. XLF is at 23.21. If XLF 23.08 fails, markets are guaranteed to be moving lower. For now, the bull-bear struggle continues.

10/12/14; 7:00 PM EST =

10/6/14; 12:29 PM EST = -7; signal line is +1 but algorithm remains long

10/6/14; 12:08 PM EST = +7; signal line is +3

10/6/14; 11:51 AM EST = -7; signal line is +3 but algorithm remains long

10/6/14; 9:31 AM EST = +7; signal line is +5; go long 1974; (Benchmark SPX for 2014 = +6.8%)(Keybot this trade = +1.5%; Keybot for 2014 = +9.5%)(Actual this trade = +2.0%; Actual for 2014 = +11.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips long at SPX 1974 after the opening bell to begin the new week of trading. The bulls ran higher out of the gate but have since fallen on their sword. The SPX gapped to 1978 and crapped to 1967. The roller coaster ride continues. NYA pops above 10700 well above the 10630 bull-bear line in the sand identified by the algo, so the stock market should remain buoyant. In these erratic markets, a whipsaw move is possible today or tomorrow. For now, the bulls are driving the bus again. Watch NYA 10630. Price is at 10665 only 35 points on the bull side.

On the last trade, the computer program gains +1.5% and the actual trading gains +2.0%. Keybot exited QID and entered SSO; the model continues using double ETF's.

10/12/14; 7:00 PM EST =

10/6/14; 9:31 AM EST = +7; signal line is +5; go long 1974; (Benchmark SPX for 2014 = +6.8%)(Keybot this trade = +1.5%; Keybot for 2014 = +9.5%)(Actual this trade = +2.0%; Actual for 2014 = +11.3%)

10/5/14; 7:00 PM EST = +7; signal line is +6 but algorithm remains short

10/3/14; 1:59 PM EST = +7; signal line is +7 but algorithm remains short

10/3/14; 1:41 PM EST = -7; signal line is +8

10/3/14; 12:34 PM EST = +7; signal line is +10

10/3/14; 9:36 AM EST = -7; signal line is +11

10/3/14; 9:00 AM EST = -23; signal line is +14

10/2/14; 1:31 PM EST = -23; signal line is +16

10/2/14; 10:15 AM EST = -39; signal line is +19

10/2/14; 9:52 AM EST = -23; signal line is +22

10/1/14; 1:06 PM EST = -39; signal line is +24

10/1/14; 12:40 PM EST = -23; signal line is +27

10/1/14; 11:29 AM EST = -9; signal line is +30

10/1/14; 11:07 AM EST = +7; signal line is +31

10/1/14; 10:14 AM EST = -9; signal line is +32

10/1/14; 10:05 AM EST = -23; signal line is +33

10/1/14; 9:47 AM EST = -9; signal line is +36

10/1/14; 9:36 AM EST = +7; signal line is +38

9/30/14; 7:00 PM EST EOM EOQ3 = +23; signal line is +37

9/30/14; 10:00 AM EST = +23; signal line is +37

9/29/14; 9:36 AM EST = +27; signal line is +38

9/28/14; 7:00 PM EST = +43; signal line is +38 but algorithm remains short

9/26/14; 10:00 AM EST = +43; signal line is +38 but algorithm remains short

9/26/14; 9:36 AM EST = +42; signal line is +39 but algorithm remains short

9/25/14; 3:59 PM EST = +26; signal line is +39

9/25/14; 3:41 PM EST = +42; signal line is +40 but algorithm remains short

9/25/14; 3:28 PM EST = +26; signal line is +40

9/25/14; 2:42 PM EST = +42; signal line is +41 but algorithm remains short

9/25/14; 1:47 PM EST = +26; signal line is +41

9/25/14; 1:17 PM EST = +42; signal line is +42 but algorithm remains short

9/25/14; 12:02 PM EST = +26; signal line is +41

9/22/14; 9:36 AM EST = +42; signal line is +42; go short 2004; (Benchmark SPX for 2014 = +8.4%)(Keybot this trade = -0.1%; Keybot for 2014 = +8.0%)(Actual this trade = +0.0%; Actual for 2014 = +9.3%)