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%)