STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into Wednesday trading the last day of 2014. Bears need a lower NYA under 10780. Bulls need a lower VIX under 14.77. One or the other will flinch and light the way for the direction ahead. An ongoing higher VIX will continue to create negativity and an ongoing higher NYA will continue creating positivity and send equities staggering sideways until one or the other flinches. Copper is important as well. Watch JJC 35.30; the bulls can gain strength with JJC above 35.30.

For the SPX starting at 2080, the bulls need to push above 2088.50 to accelerate the upside well into the 2090's. The bears need to push under 2079.50 to accelerate the downside that will quickly test 2075-2076 and decide to bounce or die. A move through 2080-2088 is sideways action to end the year. Keybot prints a pre-scheduled number to close out the year and the algo will be re-zeroed to begin the new trading year. The algo generated a near +17% return this year with minimal risk.

12/31/14; 7:00 PM EST EOM EOQ4 EOH2 EOY 2014 =

12/30/14; 10:00 AM EST = +49; signal line is +40

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the Tuesday session is underway. The algo prints the pre-scheduled number resulting in a 3-point bump for the algo number and 1-point for the signal line. The bulls remain in control of the stock market with a differential of nine points. The VIX remains above 14.73 and is currently at 15.74 which creates pressure on stocks. The bears, however, likely need to push the NYA under 10780 to create significant downside in equities and position the algo to flip short. NYA is at 10947 a comfortable 167 points above currently helping maintain buoyant stocks.

The bears have created a lid on the market upside with the higher volatility but cannot yet gain downside momo. The SPX lost 2086 this morning so it quickly collapsed four more to the 2082 low. Watch VIX 14.73 and NYA 10780. One or the other will likely flinch as time moves forward indicating the path ahead for stocks. Status quo will send stocks sideways.

1/4/15; 7:00 PM EST =

12/31/14; 7:00 PM EST EOM EOQ4 EOH2 EOY 2014 =

12/30/14; 10:00 AM EST = +49; signal line is +40

12/29/14; 9:36 AM EST = +46; signal line is +39

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The algo prints one number to begin the new holiday-shortened week of trading. Volatility leaps higher maintaining a ceiling in the stock market but bears could not gather any downside momo. Bulls will not be able to move equities higher unless the VIX is pushed under 14.73 (now at 15.06 causing market negativity). Bears will keep the lid on the upside in stocks and begin creating market weakness as long as the VIX stays above 14.73.

For the SPX printing new all-time highs and starting the Tuesday session at 2091, the bulls need to touch the 2094 handle and bingo, 2100 will print in quick order. The bears need to push under 2086 to accelerate the downside. A move through 2087-2093 is sideways action for Tuesday. The bulls remain in control but the bears have stopped the rally with VIX above 14.73; watch this at the opening bell to see who wins going forward.

1/4/15; 7:00 PM EST =

12/31/14; 7:00 PM EST EOM EOQ4 EOH2 EOY 2014 =

12/30/14; 10:00 AM EST =

12/29/14; 9:36 AM EST = +46; signal line is +39

12/28/14; 7:00 PM EST = +60; signal line is +38

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. The bulls keep pushing higher with the battle set for VIX 14.68 (now at 14.50 causing market bullishness). Very simply, stocks move higher and the SPX will set sights on 2100 if the VIX remains under 14.68. Stocks will flatten and roll over to the downside if the VIX moves above 14.68.

For the SPX starting at 2089, the bulls need four points, to touch the 2093 handle and that will create an upside acceleration towards 2100. The bears need to push under 2084 to accelerate the downside. A move through 2085-2092 is sideways action for Monday.

The algo prints a pre-scheduled number on Tuesday morning and then the statistics for Keybot's performance will be closed out for 2014 on Wednesday logging another successful year. The first day and New Year of trading for 2015 will be off and stumbling on Friday. Markets are closed on Thursday in observance of the New Years Day holiday. The Tuesday session is a regular session with a 4 PM close.

1/4/15; 7:00 PM EST =

12/31/14; 7:00 PM EST EOM EOQ4 EOH2 EOY 2014 =

12/30/14; 10:00 AM EST =

12/28/14; 7:00 PM EST = +60; signal line is +38

12/26/14; 3:59 PM EST = +60; signal line is +37

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the weekend. Volatility moves higher late in the session creating the swoon in equities late-day but the market makers jam the VIX lower to 14.50 after the price settlements. The SPX touched the 2088 handle so price accelerated to 2093. Keep watching VIX 14.68 since it provides the market direction answer; this battle is key come Monday morning. Bulls win under VIX 14.68. Bears win above 14.68. The bulls remain in control of the stock market.

12/28/14; 7:00 PM EST =

12/26/14; 3:59 PM EST = +60; signal line is +37

12/26/14; 3:24 PM EST = +46; signal line is +36

12/24/14; 9:36 AM EST = +60; signal line is +35

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the Christmas holiday. The algo printed one number in the Wednesday session. The bulls brought game from the get-go crushing volatility so it was easy to maintain stock market buoyancy. The bears are punched in the face with the VIX dropping under the critical 14.69 to 14.37 creating the upside in stocks. Bears must push VIX back above 14.69 on Friday or they got nothing and stocks will climb higher targeting SPX 2100.

For the SPX for Friday when trading resumes, starting at 2082, the bulls need to touch the 2088 handle to create an upside acceleration. The bears need to push under 2082 to accelerate the downside so any smidge of negativity in the S&P futures will set up a several handle downside move for the SPX. A move through 2083-2087 on Friday is sideways action. Watch VIX 14.69 like a hawk; it is steering the market directional ship currently. Merry Christmas! Enjoy the day!

12/28/14; 7:00 PM EST =

12/24/14; 9:36 AM EST = +60; signal line is +35

12/23/14; 3:30 PM EST = +46; signal line is +34

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long and the algo printed two more numbers this afternoon. The bulls are motoring along but the bears hold the line at VIX 14.69. Therefore, the market upside is not a done deal. Bulls need VIX under 14.69 or they got nothing. Bears must keep VIX above 14.69 and the market upside will be stopped. VIX begins on Wednesday, the shortened session with a 1 PM close, at 14.80 only 11 pennies on the bear side. The pivot of the VIX after the opening bell will likely tell you how stocks will trade through the end of the year. The stakes are high.

For the SPX starting Wednesday at 2082, a brand-new all-time high, the 51st this year, the bulls need to touch the 2087 handle to create an upside acceleration. The bears need to push under 2080 to accelerate the downside. A move through 2081-2086 is sideways action. Watch the VIX 14.69 level; it is for all the marbles.

12/28/14; 7:00 PM EST =

12/23/14; 3:30 PM EST = +46; signal line is +34

12/23/14; 2:25 PM EST = +60; signal line is +34

12/23/14; 10:17 AM EST = +46; signal line is +33

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bulls are running another day. Keybot prints two numbers in addition to the pre-scheduled number. The VIX collapses under 14.70 signaling nothing but joy ahead for bulls but then quickly reverses course and returns to the bear camp above 14.70 and now above 15. Market bulls must push VIX under 14.70 to prove the upside in equities is real.

Bears need NYA under 10770 but price keeps floating higher. Nonetheless, the bears will stall the market upside as long as VIX is above 14.70. The Dow prints above 18K printing another historic milestone during the upside acceleration after the opening bell. If the NYA weakens under 10900 and moves lower consider the caution flag to be raised in the title line but bulls are fine if they keep NYA above 10770.

12/28/14; 7:00 PM EST =

12/23/14; 10:17 AM EST = +46; signal line is +33

12/23/14; 10:00 AM EST = +46; signal line is +33

12/23/14; 9:36 AM EST = +60; signal line is +32

12/21/14; 7:00 PM EST = +46; signal line is +32

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the algo idles along during Monday trading without printing any numbers. Status quo so stocks float sideways to sideways higher. The algo is most fixated on VIX 14.70. The VIX is at 15.25 causing market bearishness so the breakout to a big upside stock market party ahead comes with the VIX under 14.70. Further upside in equities is not sustainable without VIX 14.70. The market bears need to push NYA down under 10755 to get their mojo back but price keeps floating higher to 10920.

For the SPX for Tuesdays tarting at 2079, the bulls only need to see a smidge of green in the S&P futures and an upside acceleration is on tap which appears to be the case with the S&P +4. The bears need to push under 2069 to accelerate the downside. A move through 2070-2079 is sideways action. The bulls are celebrating into Christmas but watch VIX 14.70 to see if the move higher in equities is real, or not. Keybot prints a pre-scheduled number one-half hour after the opening bell.

12/28/14; 7:00 PM EST =

12/23/14; 10:00 AM EST =

12/21/14; 7:00 PM EST = +46; signal line is +32

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of holiday-shortened trading. The stock market will close early at 1 PM EST on Wednesday, Christmas Eve, and will remain closed through Thursday, Christmas. Markets will reopen on Friday. So the week begins with two full days of trading Monday and Tuesday.

The bulls slapped the bears in the face last week. Market bears must push NYA under 10755 (now at 10890) or they will crumble. The market bulls need to push copper higher, JJC above 35.85, and/or VIX under 14.70, to create additional legs of market upside. JJC begins the week at 34.82 and VIX is at 16.49. If NYA remains bullish, and JJC and VIX bearish, stocks will float along sideways with an upward bias.

For the SPX starting at 2071 on Monday, the bulls need to touch the 2078 handle and bingo, a strong upside acceleration will occur well into the 2080's and seal the bear's fate. This would occur in concert with copper or volatility turning bullish as described above. The bears need to push under 2061 to accelerate the downside and reintroduce market negativity. A move through 2062-2077 is sideways action. The bulls are in firm control. Keybot prints one pre-scheduled number this week on Tuesday morning shortly after markets begin trading.

12/28/14; 7:00 PM EST =

12/23/14; 10:00 AM EST =

12/21/14; 7:00 PM EST = +46; signal line is +32

12/18/14; 3:01 PM EST = +46; signal line is +31

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the weekend. The algo idled along on Friday without printing any numbers. The bulls will need higher copper and lower volatility next week to continue the upside party. The bears need to push the NYA Index lower or they will receive continued daily beatings. Areas and levels of interest to the algo can be identified after the Sunday pre-scheduled number prints tomorrow. The bulls are cruising.

12/21/14; 7:00 PM EST =

12/18/14; 3:01 PM EST = +46; signal line is +31

STOCK MARKET BULLISH -- LONG

Keybot the Quant is on the long side as the bulls successfully battle for NYA 10755. The algo prints two more numbers with the bulls in firm control and a market melt-up underway.

12/21/14; 7:00 PM EST =

12/18/14; 3:01 PM EST = +46; signal line is +31

12/18/14; 2:31 PM EST = +32; signal line is +31

12/18/14; 12:50 PM EST = +46; signal line is +32; go long 2047; (Benchmark SPX for 2014 = +10.8%)(Keybot algo this trade = -0.4%; Keybot algo for 2014 = +15.8%)(Actual results this trade = -1.3%; Actual results for 2014 = +16.5%)

STOCK MARKET BULLISH -- LONG

Keybot the Quant flips to the long side today at SPX 2047 after the NYA floats above the critical 10755 bull-bear line in the sand identified by the algo. NYA 10755 (40-week MA) is a key indicator and a major blow to the bearish case on a cyclical basis (months). Continue watching it closely. Stocks will finish the year bullish if NYA remains above 10755. Bulls will create additional upside strength with VIX below14.76.

The algo program lost about one-half percent on the last trade and the actual trading lost -1.3%. Keybot exited SDS and entered SSO remaining in the double ETF's. As always, stay alert for a whipsaw today or tomorrow. The bulls are driving the bus.

12/21/14; 7:00 PM EST =

12/18/14; 12:50 PM EST = +46; signal line is +32; go long 2047; (Benchmark SPX for 2014 = +10.8%)(Keybot algo this trade = -0.4%; Keybot algo for 2014 = +15.8%)(Actual results this trade = -1.3%; Actual results for 2014 = +16.5%)

12/18/14; 12:42 PM EST = +46; signal line is +32 but algorithm remains short

12/18/14; 10:24 AM EST = +32; signal line is +32 but algorithm remains short

12/18/14; 10:16 AM EST = +46; signal line is +33 but algorithm remains short

12/17/14; 1:02 PM EST = +32; signal line is +34

12/17/14; 12:45 PM EST = +16; signal line is +34

12/17/14; 12:02 PM EST = +32; signal line is +36

12/16/14; 2:56 PM EST = +16; signal line is +36

12/16/14; 1:55 PM EST = +32; signal line is +37

12/16/14; 1:17 PM EST = +16; signal line is +38

12/16/14; 11:18 AM EST = +32; signal line is +39

12/16/14; 9:00 AM EST = +16; signal line is +40

12/15/14; 3:58 PM EST = +16; signal line is +42

12/15/14; 2:29 PM EST = +32; signal line is +43

12/15/14; 2:17 PM EST = +16; signal line is +44

12/15/14; 12:41 PM EST = +32; signal line is +47

12/15/14; 11:27 AM EST = +16; signal line is +48

12/14/14; 7:00 PM EST = +32; signal line is +49

12/12/14; 10:00 AM EST = +32; signal line is +50

12/11/14; 2:03 PM EST = +30; signal line is +50

12/11/14; 10:26 AM EST = +44; signal line is +51

12/10/14; 12:13 PM EST = +30; signal line is +52

12/10/14; 11:55 AM EST = +44; signal line is +53

12/10/14; 11:36 AM EST = +30; signal line is +53

12/10/14; 11:00 AM EST = +44; signal line is +54

12/10/14; 10:41 AM EST = +30; signal line is +54

12/9/14; 9:36 AM EST = +44; signal line is +56; go short 2038; (Benchmark SPX for 2014 = +10.3%)(Keybot algo this trade = +7.3%; Keybot algo for 2014 = +16.2%)(Actual results this trade = +8.1%; Actual results for 2014 = +17.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the bulls stage a strong comeback fueled by the Fed's easy money dovish talk. The algo prints three numbers today. Financials lead the way higher and the fix was in before the Fed statement with the XLF above 23.96. The algo number is a hair away from overcoming the signal line which would position Keybot to go long (if other internal programming rules latch properly) but for now the bears remain in control.

For Thursday, the fight is between the NYA Index and financials. Bulls need the NYA above 10755 to prove they can sustain the rally. Bears need to push XLF under 23.96 or they got nothing. Stocks will move sideways with an upward bias if NYA remains under 10755 and XLF over 23.96. If the NYA moves above 10755 and the SPX moves above 2017, Keybot will likely flip long, hence, the caution flag is out and if NYA turns bullish (above 10755) an imminent turn to the long side will be at hand.

For the SPX for Thursday starting at 2013, the bulls need to move above 2017 to create an acceleration higher. The bears need to push under 1974 to accelerate the downside. A move through 1975-2012 is sideways action. Watch NYA 10755 and XLF 23.96.

12/21/14; 7:00 PM EST =

12/17/14; 1:02 PM EST = +32; signal line is +34

12/17/14; 12:45 PM EST = +16; signal line is +34

12/17/14; 12:02 PM EST = +32; signal line is +36

12/16/14; 2:56 PM EST = +16; signal line is +36

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short and the algo prints five numbers today. The directional move on Wednesday will depend on financials and semiconductors; XLF 23.95 and SOX 657, respectively. XLF is at 23.69 creating market negativity. SOX is 661 creating market poistivity. Bears need SOX under 661 to unleash carnage. Bulls need XLF above 23.95 to create a relief rally, like today, only today's rally fizzled once XLF failed back under 23.95. If stocks sell off on Wednesday morning, but the SOX remains above 657, bears got nothing and stocks will recover.

For the SPX starting at 1973, the bears only need a smidge of red in the overnight S&P futures and stocks will accelerate lower after the opening bell. The bulls need to push the SPX above 2017 to regain their mojo, a formidable task. Instead, bulls will focus on keeping semiconductors bullish while pushing the banks higher with all their might. A move through the wide SPX 1974-2016 range is sideways action for Wednesday. The bears are driving the bus. Watch XLF 23.95 and SOX 657 to gauge broad market direction.

12/21/14; 7:00 PM EST =

12/16/14; 2:56 PM EST = +16; signal line is +36

12/16/14; 1:55 PM EST = +32; signal line is +37

12/16/14; 1:17 PM EST = +16; signal line is +38

12/16/14; 11:18 AM EST = +32; signal line is +39

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remans short but the bulls step up to the plate pushing XLF above 23.95 to create broad market bullishness. Equities float higher. Watch XLF 23.95 as the rudder steering the market ship. XLF is at 24.05 nine pennies in the bull camp creating lift in the stock market. The bulls  tighten the point gap to only seven points between the algo number and signal line but the bears remain relaxed. The VIX is actually up today despite the rally.

12/21/14; 7:00 PM EST =

12/16/14; 11:18 AM EST = +32; signal line is +39

12/16/14; 9:00 AM EST = +16; signal line is +40

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as financials take the pipe with XLF down to 23.82. The bears are only able to push SOX down to 660, however. Bears need to push SOX under 657 to create another strong leg lower for equities and additional market mayhem. The SPX also maintains the lower boundary for today at 1982 trying to push down through but unable to so the bulls will push higher. Watch XLF 23.95 as the main guide; bears are fine below while a market rally will occur if the bulls push above. The pre-scheduled number results in a two-point decrease in the signal line closing the gap between the algo number and signal line to 24 points.

12/21/14; 7:00 PM EST =

12/16/14; 9:00 AM EST = +16; signal line is +40

12/15/14; 3:58 PM EST = +16; signal line is +42

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the algo is off to an active start for Monday printing five numbers. The fight is currently over the financial sector which is impacting market direction more than any other variable. Note that XLF ends at 23.92 the exact number the algorithm called out yesterday for today. It is amazing how Keybot can identify these numbers before they occur. David Copperfield shakes his head in wonder and disbelief.

For Tuesday, watch XLF 23.95 as the bull-bear line in the sand. The XLF is in bear territory causing broad market selling by only three pennies. If the XLF moves above 23.95 after the opening bell tomorrow, stocks will rally. If XLF remains under 23.95 and moves lower, stocks will continue the downside collapse. If the bears win with weaker financials, watch semi's, SOX 657, since bears will gather even more fuel if this level fails. If the bulls win with XLF, markets will be floating higher so watch VIX 14.85 which signals the all-clear for bulls. If the VIX remains above 14.85, stocks will remains weak indefinitely moving forward.

For the SPX starting at 1990, the bulls need to touch the 2019 handle and bingo, the upside will accelerate well into the 2020's. The bears need to push under 1982 and stocks will immediately collapse to 1978 and then 1973. A move through 1983-2018 is sideways action. The bears are driving the bus. Listen and watch for any news concerning banks overnight good or bad. Bulls need stronger financials tomorrow or they are in for more pain. Stronger copper will also help the bulls recover. Keybot prints a pre-scheduled number tomorrow morning before the opening bell.

12/21/14; 7:00 PM EST =

12/16/14; 9:00 AM EST =

12/15/14; 3:58 PM EST = +16; signal line is +42

12/15/14; 2:29 PM EST = +32; signal line is +43

12/15/14; 2:17 PM EST = +16; signal line is +44

12/15/14; 12:41 PM EST = +32; signal line is +47

12/15/14; 11:27 AM EST = +16; signal line is +48

12/14/14; 7:00 PM EST = +32; signal line is +49

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short moving into the new week of trading. The bears need weaker financials to push the stock market down another leg. Watch XLF 23.92 with price at 24.14 to begin the week. If bears receive 22 pennies of downside in XLF the SPX will drop to the 1990's and even 1980's. The bulls must send the banks higher from the get-go or they are in serious trouble.

The bulls need to either push copper higher with JJC above 36.10 or push the NYA Index above 10750 to reestablish an uptrend. Bulls will likely focus on copper. If the stock market bounces on Monday but neither JJC or NYA cooperate, then markets will roll back over to the downside.

For the SPX starting at 2002, any smidge of negativity in the overnight S&P futures will create another several-handle acceleration move lower for the SPX to begin the week. Market bulls must keep the S&P futures positive by all means necessary or the SPX will be tumbling under 2000. The bulls need to push the SPX above 2032 to accelerate the upside in stocks, a very difficult task although in these markets anything is game, so instead the bulls will focus on keeping the S&P futures positive, preventing the banks from dropping and pushing copper higher. A move through 2003-2031 is sideways action to begin the week. The bears are driving the bus. Pay attention to copper.

12/21/14; 7:00 PM EST =

12/16/14; 9:00 AM EST =

12/14/14; 7:00 PM EST = +32; signal line is +49

12/12/14; 10:00 AM EST = +32; signal line is +50

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish through the weekend. Financials drop big on Friday with XLF down to 24.14. The XLF 23.92 is identified as the bull-bear line in the sand but this can be firmed up after the pre-scheduled number prints tomorrow. Financials, the NYA, copper and semiconductors are all receiving interest by the algo since they are impacting market direction. The bears end the strong historic bull market rally from mid-October to the early December top.

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

12/12/14; 10:00 AM EST = +32; signal line is +50

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish as the Friday session is underway and the pre-scheduled number prints improving the algo number by two points but remaining well under the +50 signal line. The SPX collapsed through 2028 so the 2022 handle printed quickly. Stocks are moderating sideways with NYA and JJC under the targets previously listed and XLF above. The bears are becoming comfortable on the short side. Bulls need higher NYA Index and higher copper.

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

12/12/14; 10:00 AM EST = +32; signal line is +50

12/11/14; 2:03 PM EST = +30; signal line is +50

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the higher volatility roller coaster ride continues. NYA drops under 10750 so you knew markets were in trouble. The stock market is toast as long as the NYA remains under its 40-week MA. Bulls will be back in business by pushing either NYA above 10750 or JJC above 36.08. Bears receive more downside mojo if XLF drops under 24.00 which will likely need several days of weakness to materialize if it chooses. If NYA stays below 10750, and JJC under 36.08, and XLF above 24.00, then stocks float sideways into the weekend.

For the SPX for Friday starting at 2035, the bears need to push below 2028 to accelerate the downside. S&P futures are -9 planning to make a run at the 2028. The bulls need to push above 2055, a formidable task, so instead bulls will focus on pushing the NYA and JJC higher while pushing volatility lower. A move through SPX 2029-2054 is sideways action. Keybot print a pre-scheduled number in about one hour after the opening bell occurs.

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

12/12/14; 10:00 AM EST =

12/11/14; 2:03 PM EST = +30; signal line is +50

12/11/14; 10:26 AM EST = +44; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the bulls stage a strong comeback from Wednesday's selloff. The NYA moves above 10750 a key win for bulls today but price is only 15 or 20 points above. Watch NYA 10750 closely. If the bulls prevail with NYA, then watch VIX 14.43. The market bears should be fine as long as the VIX remains above 14.43. The SPX is at 2054 trying to recover to yesterday's 2059 high which will accelerate the upside.

12/12/14; 10:00 AM EST =

12/11/14; 10:26 AM EST = +44; signal line is +51

12/10/14; 12:13 PM EST = +30; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo prints three more numbers today. The bulls are smacked in the face with the NYA falling under 10750 and as the previous message warned; equities would collapse and they did. The bulls are in trouble and got nothing unless they push the NYA back above 10750. Markets will deteriorate if the NYA stays below 10750.

For the SPX for Thursday, starting at 2026, the bulls need to retrace the Wednesday drop, a formidable task, so instead the bulls will focus on pushing volatility lower and moving the NYA above 10750. The bears need to push under SPX 2024 to accelerate the downside so watch to see if the S&P futures can provide a couple points of negativity overnight. A move through 2025-2058 is sideways action. Interestingly, Keybot did not whipsaw after the turn short first thing Tuesday morning.

12/12/14; 10:00 AM EST =

12/10/14; 12:13 PM EST = +30; signal line is +52

12/10/14; 11:55 AM EST = +44; signal line is +53

12/10/14; 11:36 AM EST = +30; signal line is +53

12/10/14; 11:00 AM EST = +44; signal line is +54

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The bears came to play today and the algo prints two numbers to begin the day. VIX is above 16 so the bears are in control. Watch 14.43 going forward. The bears also ruptured the NYA 40-week MA at 10749 but this is such a key level to fail the bulls quickly regained 10749 but price is once again trying to break down through. If NYA 10749 fails, equities will collapse lower. Bears are in control as long as VIX stays above 14.43. Bulls are back in business if VIX drops under 14.43.

12/12/14; 10:00 AM EST =

12/10/14; 11:00 AM EST = +44; signal line is +54

12/10/14; 10:41 AM EST = +30; signal line is +54

12/9/14; 9:36 AM EST = +44; signal line is +56; go short 2038; (Benchmark SPX for 2014 = +10.3%)(Keybot algo this trade = +7.3%; Keybot algo for 2014 = +16.2%)(Actual results this trade = +8.1%; Actual results for 2014 = +17.8%)

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

Keybot the Quant is on the short side after two months of rallying. Intraday the bulls stage a big comeback with the SPX closing near the highs above 2060. The SPX covered a near 30-point range today. The VIX jumped above 16 and as the volatility increases you will see larger and larger intraday and day to day point swings. The VIX drops all afternoon fueling the intraday recovery in stocks. The VIX remains above 14.43 in bear territory causing market negativity overall. The imminent turn notation is in the title line and Wednesday we find out if Keybot whipsaws back to the long side, or not. If the VIX drops under 14.43 and the SPX touches 2061 and remains above, Keybot will likely flip long creating a whipsaw and taking a loss on the stutter step. So obviously Wednesday is a key day.

The algo is tracking three parameters; VIX 14.43 is the key determinant of market direction when the bell rings Wednesday morning and NYA 10749 and JJC 36.10 are second tier parameters of import. If VIX stays above 14.43, stocks will sell off and if NYA 10749 fails, stocks will collapse. If the VIX drops under 14.43 the bulls are back in business and if JJC moves above 36.10 the bulls will be partying to SPX 2100 and Dow 18K. So bulls need lower volatility and higher copper and bears need higher volatility and a lower NYA Index.

For the SPX for Wednesday, starting at 2060, the bulls need less than one point higher, to touch the 2061 handle, and bingo, the upside will accelerate and Keybot will likely whipsaw back to the long side. So watch S&P futures since any positivity is going to put the bulls back in the driver's seat. The bears need to push under 2034 to accelerate the downside, a formidable task, so instead bears will be focused on keeping VIX above 14.43 by all means necessary. A move through SPX 2035-2060 is sideways action for Wednesday. The bears are driving the bus but off to a shaky start with the bulls already wrestling for control of the VIX 14.43 steering wheel.

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

12/12/14; 10:00 AM EST =

12/9/14; 9:36 AM EST = +44; signal line is +56; go short 2038; (Benchmark SPX for 2014 = +10.3%)(Keybot algo this trade = +7.3%; Keybot algo for 2014 = +16.2%)(Actual results this trade = +8.1%; Actual results for 2014 = +17.8%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side after the opening bell at SPX 2038. Current SPX print is 2043. Volatility leaps higher above 16 now at 16.04. VIX 14.43 remains important but VIX has a good chance of remaining above today. The algo is now tracking the NYA and copper. The NYA 40-week MA is a signal you can always watch that tells you if stocks are in a cyclical bull pattern or cyclical bear. The NYA is at 10768 and the 40-week MA is 10750. Use NYA 10749 as a major cyclical market signal. If NYA drops under 10749, equities are in a cyclical bear pattern for weeks, months and perhaps a year or two ahead. If the NYA stays above 10749, the market bulls will recover and party time will begin again.

Watch copper; JJC 36.10. Current print is 35.37 causing market bearishness. Thus, the bears need to keep VIX above 14.43 and JJC below 36.10 while pushing NYA under 10749. The bulls need to keep NYA above 10749 and push either VIX below 14.43 or JJC above 36.10. If status quo continues (no change), markets stagger sideways with an upward bias.

Stay alert for a whipsaw either today or tomorrow especially if bulls push VIX under 14.43. Keybot exited the DIA long trade and entered SDS. The algo is using double leveraged ETF's again. The SPX benchmark is up +10% on the year. The Keybot the Quant algorithm program gains +7.3% on the last trade and is up +16% this year. The actual trading, which allots for commissions, other fees and any mechanical inefficiencies, gains +8.1% on the last trade and is up +18% this year handily beating the majority of hedge funds.

Watch NYA 10749 like a hawk; also VIX 14.43. The bears are driving the bus after riding in the luggage compartment the last two months.

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

12/12/14; 10:00 AM EST =

12/9/14; 9:36 AM EST = +44; signal line is +56; go short 2038; (Benchmark SPX for 2014 = +10.3%)(Keybot algo this trade = +7.3%; Keybot algo for 2014 = +16.2%)(Actual results this trade = +8.1%; Actual results for 2014 = +17.8%)

12/8/14; 2:31 PM EST = +58; signal line is +56

12/8/14; 2:07 PM EST = +44; signal line is +56 but algorithm remains long

12/7/14; 7:00 PM EST = +58; signal line is +56

12/5/14; 9:00 AM EST = +58; signal line is +56

12/1/14; 1:03 PM EST = +58; signal line is +56

12/1/14; 11:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 11:27 AM EST = +58; signal line is +56

12/1/14; 10:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 10:23 AM EST = +58; signal line is +55

12/1/14; 9:57 AM EST = +44; signal line is +54 but algorithm remains long

11/30/14; 7:00 PM EST EOM = +58; signal line is +53

11/26/14; 10:00 AM EST = +58; signal line is +52

11/25/14; 10:00 AM EST = +57; signal line is +51

11/23/14; 7:00 PM EST = +61; signal line is +50

11/21/14; 11:01 AM EST = +61; signal line is +50

11/21/14; 10:24 AM EST = +77; signal line is +50

11/20/14; 9:36 AM EST = +61; signal line is +49

11/20/14; 9:36 AM EST = +47; signal line is +49 but algorithm remains long

11/19/14; 1:04 PM EST = +61; signal line is +49

11/19/14; 10:10 AM EST = +47; signal line is +49 but algorithm remains long

11/19/14; 9:00 AM EST = +61; signal line is +48

11/17/14; 12:13 PM EST = +61; signal line is +47

11/17/14; 11:34 AM EST = +47; signal line is +45

11/17/14; 10:05 AM EST = +61; signal line is +45

11/17/14; 9:36 AM EST = +47; signal line is +43

11/16/14; 7:00 PM EST = +61; signal line is +42

11/14/14; 10:00 AM EST = +61; signal line is +40

11/13/14; 2:36 PM EST = +60; signal line is +38

11/13/14; 2:21 PM EST = +46; signal line is +36

11/9/14; 7:00 PM EST = +60; signal line is +35

11/7/14; 9:00 AM EST = +60; signal line is +32

11/6/14; 3:31 PM EST = +60; signal line is +31

11/2/14; 7:00 PM EST EOM = +46; signal line is +28

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

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

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

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

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

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

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

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

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

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

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

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

Keybot the Quant remains long moving into the Tuesday session. A global cascading selloff is in play after confirmation occurs that China's economy is weakening. If the VIX moves above 14.43 (now at 14.21) and the SPX drops under 2054, Keybot will likely flip short. The S&P futures are deteriorating now down -12 so the two parameters listed will easily rupture at the opening bell. However, the algo has internal rules that must latch properly so the flip to the short side is not a done deal. Pay close attention to the low prints in the SPX as they occur. As long as the SPX continues steadily lower the algo should flip short. The algo has been long since SPX 1900.

12/12/14; 10:00 AM EST =

12/8/14; 2:31 PM EST = +58; signal line is +56

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

Keybot the Quant remains long. The VIX recovers for the bulls falling back under 14.43 so the bears do not have the juice. The SPX is recovering above 2059. VIX drops to 14.15 so the bears got nothing. The imminent turn notation remains since the algo number is only two ticks from the signal line but the bears need VIX above 14.43 to create selling pressure. The bears likely need the VIX above 14.43 and the SPX under 2054 to cause Keybot to flip short today. There is 90 minutes of trading remaining in the session.

12/12/14; 10:00 AM EST =

12/8/14; 2:31 PM EST = +58; signal line is +56

12/8/14; 2:07 PM EST = +44; signal line is +56 but algorithm remains long

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

Keybot the Quant remains long but a turn to the short side appears imminent. The algo wants to flip short but the internal programming rules will not yet fully latch to permit the move. Watch VIX 14.43 as the bull-bear line in the sand. Market mayhem will begin as long as the VIX stays above 14.43. If the SPX drops below 2055 and holds below for about five minutes, Keybot will likely flip short and the long rally since October will end. The tension mounts. Bears have it in their grasp if they want it.

12/12/14; 10:00 AM EST =

12/8/14; 2:07 PM EST = +44; signal line is +56 but algorithm remains long

12/7/14; 7:00 PM EST = +58; signal line is +56

Note Added 2:18 PM: Keybot probably wants to see the SPX below 2054.30 and hold that for five minutes to flip short. The VIX must stay above 14.43 to allow the move to the short side which it has so far.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the new week of trading. The bulls slap the bears in the face day after day. Keybot has been long since October longer than the typical time period for the algorithm to flip sides. The VIX begins at 11.82 and the market bears need the VIX above 14.48 to lock-in downside selling pressure.

The JJC begin at 35.08 under the 36.35 level the bulls need to lock-in a new up leg for stocks sending the SPX towards 2100. Either volatility or copper will flinch to light the way forward. Until then, stocks float sideways to sideways higher.

For the SPX starting at 2075 for Monday, the bulls need to push above 2079.50 and an upside acceleration will kick in sending price well into 2080's and likely locking in the path to 2100. The bears need to push under 2071 to accelerate the downside. If the bears can push the VIX above 14.48 and the SPX under 2071, Keybot will likely flip short. If volatility starts ratcheting strongly higher, consider the imminent turn to be in play. Without higher volatility the bears got nothing.

A move through SPX 2072-2079 is sideways action to begin the week. The algo number is only two ticks from the signal line verifying a big bull-bear battle ongoing. If you take away last Monday's selloff and quick Tuesday recovery (due to the PBOC rumors on more triple R cuts that will create stimulus), the SPX has moved sideways through 2066-2075, in less than a 10-point range, for the last two weeks. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are driving the bus.

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

12/12/14; 10:00 AM EST =

12/7/14; 7:00 PM EST = +58; signal line is +56

12/5/14; 9:00 AM EST = +58; signal line is +56

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the weekend. The bulls are unstoppable. VIX ends at 11.82 well under the 14.48 level the bears need. JJC is 35.08 under the 36.35 level the bulls need. Stocks float sideways to sideways higher until one of these two flinch; higher volatility will result in a market sell off while higher copper will create a melt-up. Areas and levels of interest for next week can be identified once the Sunday pre-scheduled number prints.

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

12/5/14; 9:00 AM EST = +58; signal line is +56

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The pre-scheduled number prints resulting in no change. The jobs report is a blowout 321K jobs but the stock market moves along sideways. The VIX 14.48 remains a key bull-bear level and the VIX drops to print an 11-handle today at 11.95 providing bull fuel. The bulls need higher copper with the JJC above 36.35 to confirm more equity upside but JJC remains stalled. Thus, with bears unable to push volatility higher and bulls unable to push copper higher, equities stagger sideways with an upward bias. Since VIX keeps dropping that takes the imminent turn scenario off the table--for now.

Market bulls have attacked the 2077.34 price level twice as the session is well underway. A move above will create an acceleration well into the 2080's. The SPX is at 2074 with a HOD at 2076.54 less than one dollar from bull victory. The bulls keep running higher. Watch SPX 2077.34.

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

12/5/14; 9:00 AM EST = +58; signal line is +56

12/1/14; 1:03 PM EST = +58; signal line is +56

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

Keybot the Quant is long for nearly seven weeks and did not print any numbers for a second day after Monday's wild ride. The projection remains repetitive. The algo is fixated on volatility and bears got nothing without VIX 14.48. Interestingly, the bulls likely need copper and/or commodities to create the next push higher and they appear less than enthusiastic. With the standoff, equities float sideways to sideways higher for another day with the SPX printing a new all-time high above 2076. If the VIX moves above 14.48, and SPX under 2067, Keybot will likely flip short.

For the SPX starting at 2074 on Thursday, the bulls need to push above 2076 and an upside acceleration will occur into the 2080's. The bears need to push under 2067 to accelerate the downside. A move through 2068-2075 is sideways action. Bulls only need a couple S&P points in the overnight futures and the rally party will continue for Thursday. Bears need higher volatility or they got nothing.

The ECB rate decision hits at 7:45 AM EST and the ECB press conference where President Draghi is expected to confirm that a full-blown QE program involving sovereign bond-buying will occur is 8:30 AM EST. S&P futures will react at both times but mainly in response to Draghi's press conference. If Draghi delivers the goods, then volatility stays low and bulls push equities higher. If Draghi fails to deliver the goods, then the VIX will jump wildly higher and stocks will sell off.

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

12/5/14; 9:00 AM EST =

12/1/14; 1:03 PM EST = +58; signal line is +56

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

Keybot the Quant is long since October and did not print any numbers today after yesterday's wild ride. The algo is fixated on volatility and bears got nothing without VIX 14.48. Interestingly, the bulls likely need copper and/or commodities to create the next push higher and they appear less than enthusiastic. With the standoff, equities float sideways to sideways higher. If VIX moves above 14.48, and SPX under 2054, Keybot will likely flip short.

For the SPX starting at 2067 on Wednesday, the bulls need to touch the 2069 handle and an upside acceleration will occur to the all-time highs at 2073 and 2076. The bears need to push under 2054 to accelerate the downside. A move through 2055-2072 is sideways action. Bulls only need a couple S&P points in the overnight futures and the rally party will continue for Wednesday. Bears need higher volatility or they got nothing. 

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

12/5/14; 9:00 AM EST =

12/1/14; 1:03 PM EST = +58; signal line is +56

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

Keybot the Quant remains long after today's roller coaster ride. VIX 14.48 remains the key. For Tuesday, if the VIX moves above 14.48 and the SPX below 2050, and both honor these levels for 5 or 10 minutes and more, Keybot will likely flip short.

The bears are threatening but do not have enough strength. Bears need higher volatility. Keybot is also tracking NYA 10735. The NYA is at 10888 and bad mojo will develop for equities if the 10735 level fails so keep that in the back of your mind.

For the SPX starting at 2053 on Tuesday, the bulls need to touch the 2066 handle to create an upside acceleration. The bears need to push price under 2050 to accelerate the downside. A move through 2051-2065 is sideways action. The bulls continue to drive the bus.

12/5/14; 9:00 AM EST =

12/1/14; 1:03 PM EST = +58; signal line is +56

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

Keybot the Quant remains long. Bears are slapped in the face as bulls push VIX back under the 14.48 line in the sand identified by the algo. The algo number and signal line are now separated by only a two-point difference. The bears are threatening but do not have enough juice as yet. The beat goes on.

12/5/14; 9:00 AM EST =

12/1/14; 1:03 PM EST = +58; signal line is +56

12/1/14; 11:54 AM EST = +44; signal line is +56 but algorithm remains long

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

Keybot the Quant remains long with the algo very active to begin the week printing another three numbers. Volatility is oscillating between the bull and bear camps causing the stock market to oscillate inversely. The algorithm has honed in on VIX 14.48 as the bull-bear line in the sand. Very simply, the stock market is going to go up if the VIX is under 14.48 and the stock market is going to go down if the VIX is above 14.48. If the VIX moves above 14.48 and the SPX drops under 2050, and they both remain above and below, respectively, Keybot will likely flip short. Here comes the VIX dropping again towards VIX 14.48 and may fall under which will send equities higher.

12/5/14; 9:00 AM EST =

12/1/14; 11:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 11:27 AM EST = +58; signal line is +56

12/1/14; 10:54 AM EST = +44; signal line is +56 but algorithm remains long

12/1/14; 10:23 AM EST = +58; signal line is +55

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

Keybot the Quant remains long as the algo prints a couple of numbers to begin the new week of trading. Volatility bounced and the SPX collapsed but the bears could not maintain the negative pressure; so far. Watch VIX 14.47 (replacing the prievious 14.38 number). If VIX moves above 14.47 and the SPX drops under 2051, and both remain above and below these respective targets, Keybot will likely flip short. The algo number is only three points from the signal line. The bears are flexing their muscles but need higher volatility or they got nothing. Watch VIX 14.47 like a hawk.

12/5/14; 9:00 AM EST =

12/1/14; 10:23 AM EST = +58; signal line is +55

12/1/14; 9:57 AM EST = +44; signal line is +54 but algorithm remains long

11/30/14; 7:00 PM EST EOM = +58; signal line is +53