STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short heading into the new week of trading. The bears remain in full control despite the rally in the back half of last week. The algo is idling along tracking parameters but none are in the top tier of concern to impact broad market direction.

For the SPX starting at 1989, the bulls need to push above 1993 to accelerate the upside which will target 2000+ very quickly. The bears need to push under 1975 which will create a several-handle downside acceleration. A move through 1976-1993 is sideways action to begin the week.

9/6/15; 7:00 PM EST =

9/4/15; 9:00 AM EST =

8/31/15; 7:00 PM EST EOM =

8/30/15; 7:00 PM EST = -54; signal line is +3

8/28/15; 10:00 AM EST = -54; signal line is +5

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish as Friday trading is underway. The two-day stock market rally has not changed the algo's outlook for continued weakness ahead. The algo has not printed any numbers in a couple of days and the algo number remains 59 points under the signal line. Bulls have a lot of ground to make up. The Friday pre-scheduled number prints a short time ago dropping the algo number and signal line by one point each. The bears remain in control despite the two-day rally.

8/30/15; 7:00 PM EST =

8/28/15; 10:00 AM EST = -54; signal line is +5

8/25/15; 10:00 AM EST = -53; signal line is +6

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The big rally in stocks today does not impress the algo. The pre-scheduled number prints and bounces the algo number 5 points higher. Bears remain in firm control.

8/28/15; 10:00 AM EST =

8/25/15; 10:00 AM EST = -53; signal line is +6

8/24/15; 1:22 PM EST = -58; signal line is +7

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the bears keep smacking the bulls around. Bulls can probably stop the market selling if they move the utilities higher. Watch UTIL 585.74, call it 586. UTIL is at 573 which causes market negativity. Bulls can stop the stock market carnage by pushing UTIL above 586. UTIL failed the 50-week MA this morning at 589 and the closing low 15 weeks ago at 585.74 opening a trap-door in the markets and stocks certainly collapsed through the trap-door.

The bears are cruising with the algo number 65 points under the signal line. Keybot prints a pre-scheduled number shortly after trading begins on Tuesday.

8/25/15; 10:00 AM EST =

8/24/15; 1:22 PM EST = -58; signal line is +7

8/24/15; 11:59 AM EST = -26; signal line is +9

8/24/15; 9:36 AM EST = -58; signal line is +11

8/23/15; 7:00 PM EST = -26; signal line is +13

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short to begin the new week of trading. The stock market drubbing was extensive last week. Market bears will receive more downside fuel if utilities move lower. Bulls will need retail and financial stocks higher, and volatility lower, to recover.

For the SPX starting at 1971, the bears need any amount of red in the S&P futures and the SPX will drop several handles at the opening bell. Bulls will simply try to keep the S&P futures green with all their might which will at least stabilize stocks sideways. Keybot prints two pre-scheduled numbers this week one on Tuesday and one on Friday. The bears are in control.

8/30/15; 7:00 PM EST =

8/28/15; 10:00 AM EST =

8/25/15; 10:00 AM EST =

8/23/15; 7:00 PM EST = -26; signal line is +13

8/21/15; 9:36 AM EST = -26; signal line is +15

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish through the weekend. Stocks fell out of bed on Friday afternoon in a mini-crash. The algo is tracking utilities, retail and volatility so UTIL, RTH and VIX will be important things to watch next week. The stock market always takes the stairs up and the elevator down. Areas and levels of interest can be identified after the Sunday pre-scheduled number prints tomorrow.

8/23/15; 7:00 PM EST =

8/21/15; 9:36 AM EST = -26; signal line is +15

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short as retail stocks take the pipe to begin Friday's trade. RTH plummets below 77.37 creating negativity. Bulls will need to bring RTH higher to stop the market selling. Bears are in firm control and are now attacking the utility sector to gain more downside juice. Bulls will try to keep utilities strong while pulling retail stocks higher.

The bears are cruising with the algo number 41 points below the signal line. The markets are erratic and unstable.

8/23/15; 7:00 PM EST =

8/21/15; 9:36 AM EST = -26; signal line is +15

8/20/15; 10:01 AM EST = -10; signal line is +16

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short today with the banks breaking down. Friday is a contest between retail and financial stocks. Bears will receive further downside fuel with RTH under 77.37 (now at 77.41 only four pennies on the bull side creating market upside). If RTH moves higher then the stock market will recover. The bulls need either SPX above 2060 and/or XLF above 25.00, either would do, to confirm that the market selling is over. If stocks recover on Friday, but the SPX remains under 2060 and XLF under 25, then the market selling will likely resume next week.

For the SPX starting at 2036, any smidge of negativity in the S&P futures will send the SPX several points lower. The bulls need to recover today's big loss in the SPX, a formidable task, so instead bulls will focus on sending RTH, XLF and the SPX higher to at least slow down or stabilize the market selling. The bears are driving the bus.

Keybot the Quant algo logs the third loss in a row as markets keep trading choppy sideways. The losses, however, are marginal the computer program and the actual trading both losing about one-half percent. The robot is in the single ETF's mode due to the choppy nature of the price action. Keybot exits SPY and enters SH. The SPX Benchmark Index is up +0.8% but after the day played out and ended at 2035, the SPX is down -1.2% on the year. The bears are in charge with the algo number 26 points below the signal line. 

8/23/15; 7:00 PM EST =

8/20/15; 10:01 AM EST = -10; signal line is +16

8/20/15; 9:30 AM EST = +4; signal line is +17; go short 2076; (Benchmark SPX for 2015 = +0.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2015 = +1.7%)(Actual results this trade = -0.4%; Actual results for 2015 = +1.7%)

8/19/15; 11:06 AM EST = +20; signal line is +18

8/19/15; 10:46 AM EST = +4; signal line is +18 but algorithm remains long

8/18/15; 11:37 AM EST = +20; signal line is +18

8/18/15; 10:11 AM EST = +34; signal line is +18

8/18/15; 9:51 AM EST = +20; signal line is +16

8/18/15; 9:00 AM EST = +34; signal line is +16

8/17/15; 11:02 AM EST = +34; signal line is +16

8/17/15; 9:36 AM EST = +20; signal line is +16

8/16/15; 7:00 PM EST = +34; signal line is +16

8/14/15; 10:00 AM EST = +34; signal line is +16

8/14/15; 9:58 AM EST = +34; signal line is +16

8/14/15; 9:45 AM EST = +20; signal line is +15

8/13/15; 3:59 PM EST = +35; signal line is +16

8/13/15; 3:40 PM EST = +21; signal line is +15

8/13/15; 11:54 AM EST = +35; signal line is +14

8/13/15; 10:34 AM EST = +21; signal line is +12

8/13/15; 9:53 AM EST = +5; signal line is +10 but algorithm remains long

8/12/15; 3:30 PM EST = +21; signal line is +10; go long 2087; (Benchmark SPX for 2015 = +1.4%)(Keybot algo this trade = -1.1%; Keybot algo for 2015 = +2.2%)(Actual results this trade = -2.1%; Actual results for 2015 = +2.1%)

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

Keybot the Quant remains long and for all the market dramatics today the algo only prints two numbers and motors along on the long side. The bears were in the driver's seat at 11 AM EST but did not have the oomph to force markets lower. XLF 25.00 is key and will dictate market direction tomorrow. XLF begins at 25.05 on the bull side so the broad stock market will float higher. If XLF drops under 25, the selling in equities will accelerate.

Bulls will confirm an upside rally ahead if the VIX drops under 13.50 (now at 15.25 in the bear camp causing market negativity). If VIX stays above 13.50 and XLF above 25, stocks will float along sideways with a slight upward bias. If XLF drops under 25, stocks will start selling off and Keybot the Quant will likely go short but the SPX probably will need to drop under 2071. If the VIX drops under 13.50, bulls will be partying into the weekend with a big rally.

For the SPX starting at 2080 on Thursday morning, the bulls need to touch the 2096 handle to accelerate higher above 2100 in quick order. The bears need to push SPX under 2071 to accelerate the downside and bad things will begin happening to equities. The SPX started the year at 2059. A move through 2072-2095 on Thursday is sideways action. The imminent turn notation is in the title line since XLF under 25 will set the algo up to potentially flip short. Therefore, listen for any bank news overnight that will influence XLF one way or the other.

8/23/15; 7:00 PM EST =

8/19/15; 11:06 AM EST = +20; signal line is +18

8/19/15; 10:46 AM EST = +4; signal line is +18 but algorithm remains long

8/18/15; 11:37 AM EST = +20; signal line is +18

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo continues to track volatility as the main market direction driver currently at VIX 13.48. The VIX is above at 13.92 which ushers in the stock market weakness. Bulls will not continue the path higher with stocks unless VIX drops under 13.48. The algo number is only two points from the signal line so the bulls and bears are battling for control.

Market bears need weaker retail and financial stocks to push the market substantially lower. It would not be surprising to see volatility oscillate above and below the VIX 13.48 level today and tomorrow which will continue to cause the algo number and signal line to converge for a potential turn. For now, the bulls are maintaining control but they need the VIX back under 13.48 as soon as possible.

8/23/15; 7:00 PM EST =

8/18/15; 11:37 AM EST = +20; signal line is +18

8/18/15; 10:11 AM EST = +34; signal line is +18

8/18/15; 9:51 AM EST = +20; signal line is +16

8/18/15; 9:00 AM EST = +34; signal line is +16

8/17/15; 11:02 AM EST = +34; signal line is +16

8/17/15; 9:36 AM EST = +20; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long but the algo number is only four points from the signal line. The bulls remain in control but the bears are using higher volatility to push stocks lower. Watch VIX 13.48 as the line in the sand. Stocks will sell off if the VIX is above 13.48 and moving higher.  Stocks will rally higher if VIX drops under 13.48. VIX is currently printing 13.63 in the bear camp by only 15 cents. Volatility will dictate market direction today.

8/18/15; 9:00 AM EST =

8/17/15; 9:36 AM EST = +20; signal line is +16

8/16/15; 7:00 PM EST = +34; signal line is +16

Note Added 10:53 AM: VIX is down to 13.52 at the 13.48 line in the sand. The market direction story will now be told. Volatility, the VIX, will either bounce or die from this level and the stock market will move in the opposite direction.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the new week of trading is set to begin. The bulls are in the driver's seat. The bears need higher volatility. VIX begins at 12.83 well under the bull-bear line at 13.58 that is creating stock market upside.

For the SPX starting at 2092, the bulls only need one point of upside and the SPX will catch a bid to 2100. The bears need to push under 2081 to accelerate the downside. A move through 2082-2092 is sideways action to begin the week. Keybot prints one pre-scheduled number this week tomorrow morning.

8/23/15; 7:00 PM EST =

8/18/15; 9:00 AM EST =

8/16/15; 7:00 PM EST = +34; signal line is +16

8/14/15; 10:00 AM EST = +34; signal line is +16

Note Added 10:35 AM: VIX had jumped above 14 creating stock market weakness but now retreats down to 13.58. The algorithm identifies 13.48 as the key bull-bear line in the sand. The VIX is staggering sideways at this level for the last one-half hour and will break one way or the other. Market bears win with equities selling off if VIX moves higher. Market bulls win and send stocks higher if the VIX drops.

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

Keybot the Quant remains long as the algo continues to print multiple numbers each day and in Friday trading has already printed two numbers plus the pre-scheduled number.

Bulls are cruising unless the bears can push financials lower and volatility higher. XLF caught a bid after the opening bell which drives the broad indexes higher. Bulls continue to float stocks higher into the weekend if XLF remains above 24.95 and VIX under 13.59. Bears got nothing unless these two parameters turn bearish; if so, the algo will likely flip short. The VIX is at 13.48 and XLF at 25.16 so the bulls are smiling.

8/16/15; 7:00 PM EST =

8/14/15; 10:00 AM EST = +34; signal line is +16

8/14/15; 9:58 AM EST = +34; signal line is +16

8/14/15; 9:45 AM EST = +20; signal line is +15

8/13/15; 3:59 PM EST = +35; signal line is +16

8/13/15; 3:40 PM EST = +21; signal line is +15

8/13/15; 11:54 AM EST = +35; signal line is +14

8/13/15; 10:34 AM EST = +21; signal line is +12

8/13/15; 9:53 AM EST = +5; signal line is +10 but algorithm remains long

8/12/15; 3:30 PM EST = +21; signal line is +10; go long 2087; (Benchmark SPX for 2015 = +1.4%)(Keybot algo this trade = -1.1%; Keybot algo for 2015 = +2.2%)(Actual results this trade = -2.1%; Actual results for 2015 = +2.1%)

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

Keybot the Quant is long after a whipsaw erratic day. The algorithm prints a very rare day where a whipsaw occurs intraday; this has only happened twice over the last seven years for the Keybot program. Markets are unstable. Utilities move strongly higher and are no longer on the algo's radar. The retail and financial stocks were very influential with market direction today. Bears need either RTH under 77.20 and/or XLF under 24.95 to stop the stock market rally. Bulls need VIX under 13.58 to prove they have the beans to take the stock market higher.

Since XLF is only 3 pennies away from 24.95 and VIX only 3 pennies from 13.58, financials and volatility tell the market direction story at the opening bell on Thursday. Bulls win with lower volatility and bears win with lower financials.

If RTH or XLF turn bearish, and the SPX moves under 2052, Keybot will likely flip short. The 2052 is a long way down, however, so bears will focus on lower financials and higher volatility. The SPX begins at 2086; the bulls need to push above 2089 and price will run well into the 2090's.

A wild double flip occurs today. The first trade where the algo went short created a loss of about -1% for both the computer program and the actual trading and the SPX benchmark is flat on the year (SPX began the year at 2059). The bears were happy but as the session continued the bulls fight back and at 3:30 PM flip the algo back to the bull side.

On this six-hour trade, the algo program takes a -1% hit and the actual trading takes a -2% hit. Keybot was in SDS for the short trade but that ended and the algo went into SPY. The algo is now using single ETF's (due to the whipsaw) such as SPY (long) and SH (short) for at least 35 days since the markets are too unstable to use 2x ETF's such as SSO (2x long) and SDS (2x short). For the year, the benchmark SPX index is up +1.4% and the algo program and actual trading are each up +2%. The bulls continue to drive the bus. Watch XLF 24.95 and VIX 13.58 to receive the market direction answer for Thursday.

8/16/15; 7:00 PM EST =

8/14/15; 10:00 AM EST =

8/12/15; 3:30 PM EST = +21; signal line is +10; go long 2087; (Benchmark SPX for 2015 = +1.4%)(Keybot algo this trade = -1.1%; Keybot algo for 2015 = +2.2%)(Actual results this trade = -2.1%; Actual results for 2015 = +2.1%)

8/12/15; 1:02 PM EST = +5; signal line is +9

8/12/15; 12:32 PM EST = -11; signal line is +9

8/12/15; 10:13 AM EST = -25; signal line is +9

8/12/15; 9:36 AM EST = -11; signal line is +10; go short 2064; (Benchmark SPX for 2015 = +0.2%)(Keybot algo this trade = -0.6%; Keybot algo for 2015 = +3.3%)(Actual results this trade = -1.2%; Actual results for 2015 = +4.2%)

8/11/15; 3:59 PM EST = +21; signal line is +11

8/11/15; 2:13 PM EST = +5; signal line is +11 but algorithm remains long

8/11/15; 11:28 AM EST = +21; signal line is +11

8/11/15; 11:16 AM EST = +5; signal line is +11 but algorithm remains long

8/11/15; 11:12 AM EST = +21; signal line is +12

8/11/15; 10:18 AM EST = +35; signal line is +12

8/11/15; 9:36 AM EST = +19; signal line is +11

8/10/15; 2:53 PM EST = +3; signal line is +11 but algorithm remains long

8/10/15; 2:43 PM EST = +19; signal line is +11

8/10/15; 1:39 PM EST = +3; signal line is +10 but algorithm remains long

8/10/15; 12:21 PM EST = +19; signal line is +10

8/10/15; 11:47 AM EST = +35; signal line is +10

8/10/15; 11:31 AM EST = +19; signal line is +9

8/10/15; 11:21 AM EST = +35; signal line is +8

8/10/15; 11:08 AM EST = +19; signal line is +7

8/10/15; 9:36 AM EST = +35; signal line is +7

8/9/15; 7:00 PM EST = +19; signal line is +7

8/7/15; 3:53 PM EST = +19; signal line is +7; go long 2077; (Benchmark SPX for 2015 = +0.9%)(Keybot algo this trade = +0.8%; Keybot algo for 2015 = +3.9%)(Actual results this trade = +1.4%; Actual results for 2015 = +5.4%)

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

Keybot the Quant remains long as the market theatrics continue. Volatility moves higher creating market selling pressure. The VIX takes out the critical 13.57 level ushering in the market selling. UTIL, however, remains above 587.61 and 590.04 so bears are unable to gain downside traction. Isn't it amazing that the algorithm can call out important key levels and areas in markets before they occur? In this case, UTIL 509.04 is key and price closes at 509.08.

If bears can push UTIL four pennies lower under 509.04, and the SPX under 2077, the algo will likely flip short. If UTIL fails at 587.61, the algo may immediately flip short. Thus, the imminent turn is in play. Bulls need to push VIX under 13.57 which will end the market selling and begin a rally in equities.

For the SPX starting at 2084 on Wednesday morning, the bulls need to touch 2103 to create an upside acceleration. Bears need to push under 2077 to accelerate the downside. A move through 2078-2102 is sideways action. The drama continues. Markets are unstable.

8/14/15; 10:00 AM EST =

8/11/15; 3:59 PM EST = +21; signal line is +11

8/11/15; 2:13 PM EST = +5; signal line is +11 but algorithm remains long

8/11/15; 11:28 AM EST = +21; signal line is +11

8/11/15; 11:16 AM EST = +5; signal line is +11 but algorithm remains long

8/11/15; 11:12 AM EST = +21; signal line is +12

8/11/15; 10:18 AM EST = +35; signal line is +12

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Bulls are pushing utilities higher and the bears are unable to significantly push the VIX higher. If bears want to send stocks lower, they must send UTIL under 590, and then under 587, and the VIX above 13.60. The bulls continue driving the bus despite the market selling. Markets are erratic and unstable. Watch utes and volatility. UTIL is at 592 and VIX is at 13.33.

8/14/15; 10:00 AM EST =

8/11/15; 10:18 AM EST = +35; signal line is +12

8/11/15; 9:36 AM EST = +19; signal line is +11

8/10/15; 2:53 PM EST = +3; signal line is +11 but algorithm remains long

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

Keybot the Quant remains long moving into the Tuesday session. The algo is very active to begin the week printing nine numbers in Monday trading. Keybot is champing at the bit to go short (the algo number is below the signal line), however, internal programming rules will not yet fully latch to permit the move to the bear side. If the SPX drops under 2081, or, if the VIX moves above 13.60, Keybot will likely immediately flip short. Bulls need UTIL above 587.61 and above 590.04 which will create upside strength in stocks and help the bulls recover. Bears must keep UTIL under 587.61 while raising volatility.

For the SPX starting at 2104, the bulls only need one point higher, to push above 2105 and price will accelerate to 2110 in quick order. The bears need to push under 2081, a formidable task, so instead bears will focus on pushing utilities lower and volatility higher. A move through 2082-2104 is sideways action. S&P futures are -9 about two hours before the opening bell.

8/16/15; 7:00 PM EST =

8/14/15; 10:00 AM EST =

8/10/15; 2:53 PM EST = +3; signal line is +11 but algorithm remains long

8/10/15; 2:43 PM EST = +19; signal line is +11

8/10/15; 1:39 PM EST = +3; signal line is +10 but algorithm remains long

8/10/15; 12:21 PM EST = +19; signal line is +10

8/10/15; 11:47 AM EST = +35; signal line is +10

8/10/15; 11:31 AM EST = +19; signal line is +9

8/10/15; 11:21 AM EST = +35; signal line is +8

8/10/15; 11:08 AM EST = +19; signal line is +7

8/10/15; 9:36 AM EST = +35; signal line is +7

8/9/15; 7:00 PM EST = +19; signal line is +7

SPX S&P 500 Daily Chart Displays Keybot the Quant Algorithm Turns

The SPX chart shows the Keybot the Quant algorithm turns over the last year; the green bar is when the computer model triggered to go long and the red line is when the model flips to the short side. The blue channel lines highlight the choppy sideways action for the stock market this year that only serves to chew up bulls and bears alike. Right when the bears think they have the upper hand with markets dropping, the bulls come in and punch the bears in the face reversing stocks to the upside. When traders run into the long side thinking the fix is in for an upside party, the bears rush in and punch the bulls in the face dragging stocks lower. Rinse and repeat.  The bulls will win big above 2130. Bears will win big under 2050-ish.

It is amazing that Keybot continues to weather the treacherous sideways storm this  year with a +5.4% return thus far, however, the whipsaw choppiness may continue and can easily chew up any gains. Keybot flipped short on Thursday, 8/6/15, only to reverse course on Friday, 8/7/15, back to the upside as the respective red and green bars at the right margin show. The market theatrics continue. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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

Keybot the Quant is long to begin the new week of trading. Market bulls must keep UTIL above both the 587 and 590 levels while also keeping the VIX under 13.67. If so, then the stock market will float higher. If UTIL drops under 590 or the VIX moves above 13.67 markets will be selling off. If both turn bearish the selling will increase. If UTIL then loses the 587 level, stocks will be going downhill fast. If UTIL slips under 590 and VIX moves above 13.67, and the SPX drops under 2068, Keybot will likely flip to the short side. Markets remain a coin flip but utilities and volatility will tell you the market direction answer.

For the SPX starting at 2078, the bulls need to touch the 2083 handle and a strong upside acceleration will occur. The bears need to push under 2068 to accelerate the downside. A move through 2069-2082 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning.

8/16/15; 7:00 PM EST =

8/14/15; 10:00 AM EST =

8/9/15; 7:00 PM EST = +19; signal line is +7

8/7/15; 3:53 PM EST = +19; signal line is +7; go long 2077; (Benchmark SPX for 2015 = +0.9%)(Keybot algo this trade = +0.8%; Keybot algo for 2015 = +3.9%)(Actual results this trade = +1.4%; Actual results for 2015 = +5.4%)

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

Keybot the Quant is long the stock market after a wild finish to the week. On Thursday morning, the algo flipped to the short side at SPX 2093. The bears were in control but the bulls fight back on Friday. In the final minutes of trading to end the week, the model flips back to the long side at SPX 2077. Utilities, retail stocks and volatility play a key role in Friday's drama.

For next week, the bulls will be in good shape if UTIL remains above 590 while the bears will growl again if VIX moves above 13.67. Next week's parameters and levels of interest to the algo can be identified after the Sunday pre-scheduled number prints.

For the long trade that ended on Thursday morning, the Keybot computer program gained +0.9% and the actual trading gained +1.6%. For the quick Thursday-Friday trade with Keybot flipping back to the long side, the algo program gained +0.8% and the actual trading +1.4%. The SPX Benchmark index is up a paltry +0.9% this year. The choppy sideways behavior continues for months chewing up bulls and bears. The Dow is negative on the year. The Keybot algorithm computer program is up nearly +4% this year and the Keybot actual trading, triggered by the algo, is up over +5% in 2015.

On Thursday morning when the algo flipped short, Keybot exited SSO and entered SDS. Late Friday when the algo flipped long, the algo exited SDS and entered SSO. The algo rules dictate a whipsaw as a flip in status within 10 hours and 22 minutes of trading time. The move back to the long side is not considered a whipsaw move and the algorithm remains in the 2x ETF funds (if a whipsaw would have occurred the algo would have dropped into single ETF's). The bulls are driving the bus but markets are a coin flip.

8/9/15; 7:00 PM EST =

8/7/15; 3:53 PM EST = +19; signal line is +7; go long 2077; (Benchmark SPX for 2015 = +0.9%)(Keybot algo this trade = +0.8%; Keybot algo for 2015 = +3.9%)(Actual results this trade = +1.4%; Actual results for 2015 = +5.4%)

8/7/15; 11:56 AM EST = +5; signal line is +7

8/7/15; 11:51 AM EST = -11; signal line is +7

8/7/15; 11:32 AM EST = -27; signal line is +7

8/7/15; 10:29 AM EST = -11; signal line is +8

8/7/15; 9:57 AM EST = +3; signal line is +7

8/7/15; 9:00 AM EST = -11; signal line is +7

8/6/15; 11:32 AM EST = -11; signal line is +7

8/6/15; 9:54 AM EST = +3; signal line is +7; go short 2093; (Benchmark SPX for 2015 = +1.6%)(Keybot algo this trade = +0.9%; Keybot algo for 2015 = +3.1%)(Actual results this trade = +1.6%; Actual results for 2015 = +4.0%)

8/4/15; 9:36 AM EST = +3; signal line is +5 but algorithm remains long

8/3/15; 3:46 PM EST = +19; signal line is +4

8/3/15; 2:24 PM EST = +3; signal line is +2

8/3/15; 9:36 AM EST = +19; signal line is +2

8/2/15; 7:00 PM EST EOM = +19; signal line is -1

7/31/15; 12:02 PM EST = +19; signal line is -3

7/31/15; 10:29 AM EST = +35; signal line is -6

7/31/15; 10:00 AM EST = +19; signal line is -8

7/31/15; 9:37 AM EST = +19; signal line is -10

7/28/15; 1:08 PM EST = +3; signal line is -12

7/28/15; 10:00 AM EST = -11; signal line is -14

7/27/15; 9:36 AM EST = -6; signal line is -15

7/26/15; 7:00 PM EST = +8; signal line is -15

7/24/15; 3:59 PM EST = +8; signal line is -16

7/24/15; 1:21 PM EST = -6; signal line is -18

7/21/15; 11:05 AM EST = +8; signal line is -19

7/19/15; 7:00 PM EST = +22; signal line is -20

7/17/15; 10:00 AM EST = +22; signal line is -22

7/17/15; 9:00 AM EST = +22; signal line is -23

7/13/15; 3:01 PM EST = +22; signal line is -25

7/13/15; 9:36 AM EST = +8; signal line is -27

7/12/15; 7:00 PM EST = -6; signal line is -28

7/10/15; 2:20 PM EST = -6; signal line is -30

7/10/15; 12:36 PM EST = -22; signal line is -30

7/10/15; 11:47 AM EST = -6; signal line is -30

7/10/15; 10:01 AM EST = -22; signal line is -29

7/10/15; 9:36 AM EST = -6; signal line is -29; go long 2075; (Benchmark SPX for 2015 = +0.8%)(Keybot algo this trade = +1.5%; Keybot algo for 2015 = +2.2%)(Actual results this trade = +2.6%; Actual results for 2015 = +2.4%)

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. The algo number is under the signal line but internal programming rules are not fully latched to permit the move to the short side. The key parameter would be SPX dropping under 2087 which would likely cause the algo to flip short. The SPX is at 2098 as this is typed. If UTIL moves back above the key level of 587.10 (now down to a 583 handle), then the bulls will recover and rally stocks higher.

8/7/15; 9:00 AM EST =

8/4/15; 9:36 AM EST = +3; signal line is +5 but algorithm remains long

8/3/15; 3:46 PM EST = +19; signal line is +4

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long with the algo printing three numbers in Monday's trade. Note that the algo number dropped to one point away from the signal line so the bears are trying to growl. The growls are snuffed out by utilities rising higher. Watch UTIL 586.90. Bears need UTIL below 586.90 to stop the upside move in equities. Watch NYA 10941. Bulls need NYA above 10941 to gain upside strength for the stock market. Market bears would also benefit from the VIX rising above 13.66 now at 12.56. If either UTIL drops under 586.90 or VIX moves above 13.66, consider the imminent turn to be in play and if the SPX drops under 2087, Keybot will likely flip short.

For the SPX on Tuesday starting at 2098, the bulls need to push above 2106 to accelerate a move higher. The bears need to push under 2087 to gain downside mojo. A move through 2088-2105 is sideways action. S&P futures are -3 three hours before the opening bell. The bulls are running but pay attention to UTIL 586.90 and SPX 2087 that would likely place the bears in the drivers seat.

8/7/15; 9:00 AM EST =

8/3/15; 3:46 PM EST = +19; signal line is +4

8/3/15; 2:24 PM EST = +3; signal line is +2

8/3/15; 9:36 AM EST = +19; signal line is +2

8/2/15; 7:00 PM EST EOM = +19; signal line is -1

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. Note how UTIL came down to 583.28 late Friday and bounced. It is always amazing how the algorithm can identify these key pivot points in individual sectors exactly when their importance to overall market direction is at a peak. For Monday, UTIL 586.44 is a key level. UTIL begins in bear territory at 583.94; bulls need to push above 586.44 to gain market strength while bears need to push utilities lower. Bulls need NYA above 10941 to gain upside strength for the broad market. Bears need either VIX above 13.70 and/or XLF under 24.82 to receive downside juice for the stock market.

For the entire week, UTIL 597.81 is a key number in addition to 586.44. Since UTIL is well below, the algo will likely print a number in the opening minutes of trading Monday morning sending the algo number down to +3 very near the signal line but not yet under to prepare the algo to flip short. Bears will need either lower financials or higher volatility to flip the model to the short side, or, the stock market may become tricky and slick and jog UTIL above and below 586.44 during the day which may then subsequently be enough to move the algo number below the signal line. For now, the bulls are running the show.

For the SPX for Monday beginning at 2104, the bulls need to push above 2114 to accelerate the upside. Bears need the SPX under 2102, only two points lower, to accelerate the downside which will seek 2098 then 2091. S&P futures are +1 as this message is typed Sunday evening in the States on the East Coast. A move through 2103-2113 is sideways action to begin the week. UTIL 586.44 may be a hot pivot point on Monday and the broad market direction will follow its behavior; bulls win above and bears win below.

8/9/15; 7:00 PM EST =

8/7/15; 9:00 AM EST =

8/2/15; 7:00 PM EST EOM = +19; signal line is -1

7/31/15; 12:02 PM EST = +19; signal line is -3

7/31/15; 10:29 AM EST = +35; signal line is -6