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

Keybot the Quant remains long through the weekend. Keybot has only printed the pre-scheduled number yesterday morning during the last couple days. The algorithm has been champing at the bit to go short since Wednesday morning but the internal programming parameters will not yet fully latch to permit the move. The algorithm has gone the longest time, about 2-1/2 days, wanting to flip sides but held back, in its existence. This tells you that special times are occurring concerning markets. Utilities and copper remain in the bear camp so stocks moved sideways with a slight downward bias. Next week's parameters and levels of interest can be identified once the Sunday pre-scheduled number prints.

11/1/15; 7:00 PM EST EOM =

10/3015; 10:00 AM EST = +35; signal line is +40 but algorithm remains long

10/2815; 10:31 AM EST = +36; signal line is +44 but algorithm remains long

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

Keybot the Quant remains long. The algo prints one number during the Wednesday trade and interestingly, despite the big run-up in stocks, Keybot is champing at the bit to go short. The internal programming rules, however, will not yet permit the move to the bear side. If the SPX drops under 2063, the algo will likely flip short. The bulls need either UTIL above 589.28 or JJC above 27.97 to create more stock market upside. Equities will trade flat with a downward bias if utilities and copper remain in the bear camp.

For the SPX starting at 2090 on Thursday, the bulls need any smidge of positivity in the S&P futures and boom, stocks will accelerate higher after the opening bell. The bears need to push under 2063, a formidable task, so instead the bears will fight overnight to keep S&P futures negative and then keep utes and copper bearish during the regular session. It is fascinating to see stocks spike higher with the algo wanting to go short; this is extremely odd, erratic, and unstable behavior.

11/1/15; 7:00 PM EST EOM =

10/3015; 10:00 AM EST =

10/2815; 10:31 AM EST = +36; signal line is +44 but algorithm remains long

10/2715; 3:17 PM EST = +52; signal line is +44

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

Keybot the Quant remains long but the bears were growling today trying to flip the model short. Internal programming rules would not allow the move to the bear side. The SPX needed to take out the LOD at 2058.84 but could not. Wednesday will be a fight between utilities and copper again. Bears need UTIL under 589.32 and if this happens, and also the SPX drops under 2059, Keybot will likely flip short. If JJC moves above 27.97, only 26 pennies away, the bulls will pop champagne corks and send stocks higher.

For the SPX starting at 2066, the bulls need to push above 2070 which will send price towards 2080 in quick order. The bears need to push under 2059 and the downside will accelerate lower. A move through 2060-2069 is sideways action. The bulls are steering the bus but the bears are knocking at the door.

10/3015; 10:00 AM EST =

10/2715; 3:17 PM EST = +52; signal line is +44

10/2715; 2:20 PM EST = +36; signal line is +43 but algorithm remains long

10/2715; 2:10 PM EST = +52; signal line is +43

10/2715; 1:57 PM EST = +36; signal line is +42 but algorithm remains long

10/2715; 10:00 AM EST = +52; signal line is +40

10/26/15; 12:01 PM EST = +54; signal line is +38

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

Keybot the Quant remains long moving into the Tuesday session. The algo prints four numbers yesterday; note that the algo number was within 2 points of the signal line before lunch time yesterday. The imminent turn notation is in the title line since the bears have a chance to win back control. If UTIL drops under 589.30, now at 592.05, and the SPX drops under 2067, Keybot will likely flip short. If the bulls push copper higher, JJC above 28.00 now at 27.58, the stock market will rally another leg higher. So bears need lower utilities and bulls need higher copper.

For the SPX starting at 2071, the bulls need to push above 2075 and price will be above 2080 in a flash. The bears need to push below 2067 to accelerate the downside. A move through 2068-2074 is sideways action for Tuesday. The bulls continue driving the bus but the bears are growling in the background. Watch UTIL 589.30. S&P futures point to a couple-point drop in the SPX after the opening bell in a couple hours. Keybot prints a pre-scheduled number at 10 AM EST.

10/3015; 10:00 AM EST =

10/2715; 10:00 AM EST =

10/26/15; 12:01 PM EST = +54; signal line is +38

10/26/15; 11:32 AM EST = +38; signal line is +36

10/26/15; 11:22 AM EST = +54; signal line is +35

10/26/15; 10:46 AM EST = +38; signal line is +32

10/25/15; 7:00 PM EST = +54; signal line is +31

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. Keybot did not print any numbers last Friday. Stocks leaped higher after the PBOC promises more QE easy money. The bulls are beating the bears with the central banker baseball bat.

Bulls need higher copper prices to keep pushing the stock market higher so watch JJC 28.06 (a bull-bear line in the sand identified by the algorithm). The bears need either the SPX under 2051 and/or UTIL under 589.23 to firmly stop the stock rally and reverse equities to a downside trend. If the three parameters remain status quo, stocks will drift along sideways with an upward bias.

For the SPX starting at 2075 on Monday, the bulls need to touch the 2080 handle and bingo, price will jump well into the 2080's. The bears need to push under 2058, a formidable task, so instead bears will focus on sending copper and utilities lower. A move through 2059-2079 is sideways action to begin the week.

The bulls continue to drive the bus with the algo number 23 points above the signal line. Keybot prints two pre-scheduled numbers this week one on Tuesday morning and one on Friday morning. Friday is the EOM and October began at SPX 1920.

11/1/15; 7:00 PM EST EOM =

10/3015; 10:00 AM EST =

10/2715; 10:00 AM EST =

10/25/15; 7:00 PM EST = +54; signal line is +31

10/22/15; 2:59 PM EST = +54; signal line is +30

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long with the bulls punching the bears in the face after ECB President Draghi's dovish comments. The algo is active printing six numbers. The bulls are cruising again with the algo number 24 points above the signal line but the caution flag remains out. Bears need SPX below 2050 to stop the upside rally. RTH under 75.80 will also create selling pressure. Bulls need JJC above 28.07 to continue the upside rally so watch copper overnight.

For the SPX starting at 2053 on Friday, the bulls need to push above 2055 to accelerate higher. The bears need to push under 2022 to accelerate lower a formidable task so bears will instead focus on pushing SPX under 2050 and RTH under 75.80 which will stop the upside rally and reverse the stock market to the downside. The bulls are winning since the central bankers are on their side.

10/25/15; 7:00 PM EST =

10/22/15; 2:59 PM EST = +54; signal line is +30

10/22/15; 2:03 PM EST = +40; signal line is +29

10/22/15; 12:29 PM EST = +54; signal line is +28

10/22/15; 10:57 AM EST = +40; signal line is +27

10/22/15; 9:52 AM EST = +56; signal line is +26

10/22/15; 9:36 AM EST = +40; signal line is +25

10/21/15; 3:22 PM EST = +24; signal line is +24 but algorithm remains long

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

Keybot the Quant remains long but is champing at the bit to go short. The algo prints five numbers today and the algo number and signal line are on top of each other at +24 but internal programming rules will not fully latch as yet to permit the flip short. Interestingly, there is an additional signal line that is kept proprietary and it is at +24 as well. This is showing that the bulls and bears are in exact balance right now. Blow on the markets and they will fall into one camp or the other. Flip a coin. Interestingly, the ECB rate decision and press conference occurs before the opening bell tomorrow morning so the US futures will likely tell the tale. If President Draghi provides more easy money stocks will likely party higher.

Thursday is a fight between retail stocks and financials. The bulls need to push RTH above 75.79 which will stop the broad market selling and stabilize stocks. If JJC moves above 28.04 stocks will be running strongly higher. The bears need to push XLF under 23.38 to guarantee market downside and stocks will be clearly tumbling lower. Bears will start to crush stocks lower if VIX moves above 18.05. Thus, bulls need higher retail stocks and copper while bears need lower financials and higher volatility. Watch RTH 75.79 and XLF 23.38 as the two key parameters that determine broad market direction. One of them is going to flinch.

For the SPX starting at 2019 on Thursday, the bulls need to move above 2038 to accelerate the upside. The bears need to push under 2017 to accelerate the downside. A move through 2018-2037 is sideways action. The bus is careening down the boulevard with both bull and bear hands on the steering wheel but the bulls are still sitting in the driver's seat.

If either XLF or VIX turn bearish as described, either one will do, Keybot will likely flip short. If the RTH jogs above and below the key level listed, 75.79, when price comes back down through the model may flip short at that time. Thursday is an important day.

10/25/15; 7:00 PM EST =

10/21/15; 3:22 PM EST = +24; signal line is +24 but algorithm remains long

10/21/15; 2:44 AM EST = +40; signal line is +24

10/21/15; 1:10 PM EST = +24; signal line is +24 but algorithm remains long

10/21/15; 10:44 AM EST = +40; signal line is +24

10/21/15; 10:32 AM EST = +24; signal line is +24 but algorithm remains long

10/20/15; 9:00 AM EST = +40; signal line is +23

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the Wednesday session. On Tuesday, the algorithm did not print any numbers. Note how retail stocks, RTH dropped to 75.71 exactly at the 75.70 support that Keybot identified ahead of time. Isn't it amazing? RTH bounced off the bull-bear line so the bears did not gain any downside juice.

Wednesday is shaping up as a fight between retail stocks and copper. The bulls need higher copper, JJC above 28.04, and the upside in stocks will continue. Stocks will catapult higher if SPX moves above 2048. The bears need RTH under 75.76 to firmly stop the stock market rally and introduce selling pressure.

For the SPX starting at 2031, the bulls need to push above 2039, about 8 points higher, and the upside will accelerate well into the 2040's. The bears need to push under 2027 to accelerate the downside to 2019 in a flash. A move through 2028-2038 is sideways action for Wednesday. The bulls are driving the bus with the algo number 17 points above the signal line. If copper remains weak and the retail stocks drop into the bear camp, Keybot may be in position to flip short, especially if the SPX also falls under 2027.

10/25/15; 7:00 PM EST =

10/20/15; 9:00 AM EST = +40; signal line is +23

10/19/15; 9:36 AM EST = +40; signal line is +22

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the Tuesday session. The algo prints one number yesterday and the pre-scheduled number a few minutes ago. Bulls will win with either higher copper, JJC above 28.04, and/or the SPX above 2048. Either one will guarantee a further upside rally. Bears need lower financials and retail stocks; XLF under 23.35 and/or RTH under 75.70, otherwise the bears got nothing. If financials or retail move into the bear camp, caution is required since the algo may be in position to flip short.

For the SPX starting at 2034, the bulls need any positive print and bingo, the upside will accelerate several handles. S&P futures are down -4 shortly before the opening bell. The bears need to push under 2022 to accelerate lower towards 2011. A move through 2023-2033 is sideways action for Tuesday. Watch the banks and copper. Copper is trading marginally lower.

10/25/15; 7:00 PM EST =

10/20/15; 9:00 AM EST = +40; signal line is +23

10/19/15; 9:36 AM EST = +40; signal line is +22

10/18/15; 7:00 PM EST = +56; signal line is +21

STOCK MARKET BULLISH - LONG

Keybot the Quant is long moving into the new week of trading. The bulls punched the bears in the face last week with the help of central banker money printing talk. The bulls need to move the SPX above 2048 (now at 2033) and this will likely lock in a sustainable rally into year end. The bears must hold the line at 2048 with all their might.

The upside stock market rally will stop if any of the three occur; RTH under 75.70, XLF under 23.35 and/or JJC under 28.04 so the bears need weaker retail stocks, financials and copper. If these three parameters remain in the bull camp on Monday, the bears got nothing, and stocks will move sideways with an upward bias.

For the SPX starting at 2034, the bulls need only one point higher, to touch the 2034 handle and bingo, the S&P 500 will accelerate several handles higher. The bears need to push under 2020 to accelerate the downside. A move through 2021-2033 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Tuesday morning.

10/25/15; 7:00 PM EST =

10/20/15; 9:00 AM EST =

10/18/15; 7:00 PM EST = +56; signal line is +21

10/16/15; 2:31 PM EST = +56; signal line is +21

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the weekend. The bulls bounce markets in the back half of last week due to dovish talk from central bankers. That is why the move was so sharp and sudden beginning in the futures markets last Wednesday evening. The bulls are cruising with the algo number 35 points above the signal line. Retail stocks, financials and copper are important come Monday. Areas and levels of interest for next week can be highlighted after the Sunday pre-scheduled number prints.

10/18/15; 7:00 PM EST =

10/16/15; 2:31 PM EST = +56; signal line is +21

10/16/15; 12:35 PM EST = +40; signal line is +19

10/16/15; 10:55 AM EST = +56; signal line is +18

10/16/15; 10:00 AM EST = +40; signal line is +17

10/15/15; 2:41 PM EST = +35; signal line is +15

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the long side at SPX 2011 after lunch time. Utilities led the way higher this morning with UTIL into the bull camp and running higher. Volatility drops with VIX down to 16 creating rocket fuel for stocks. Financials join the bull party with XLF above 23.35 sealing the upside deal for the bulls. As always, especially in these choppy sideways markets, stay alert for a whipsaw back to the short side.

Friday will be a fight between retail stocks and financials. Bears need XLF under 23.35 which will stall the stock market rally. Bulls need to push RTH above 75.70 and the upside party will kick into high gear.

For the SPX starting at 2024, the bulls need any smidge of green in the overnight S&P futures and the SPX will accelerate higher after the opening bell.  The bears need to push the SPX under 1996 to regain their mojo, a formidable task, so instead bears will focus on keeping the futures negative and pushing financial and retail stocks lower to stop the stock market rally. A move through 1997-2024 is sideways action to end the week.

The last trade results in a flat trade both the algorithm program and the actual trading logging marginal losses. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's. The bulls are driving the bus but markets remain erratic and unstable. Keybot prints a pre-scheduled number tomorrow morning.

10/18/15; 7:00 PM EST =

10/16/15; 10:00 AM EST =

10/15/15; 2:41 PM EST = +35; signal line is +15

10/15/15; 1:18 PM EST = +19; signal line is +13; go long 2011; (Benchmark SPX for 2015 = -2.3%)(Keybot algo this trade = -0.3%; Keybot algo for 2015 = +9.4%)(Actual results this trade = -0.4%; Actual results for 2015 = +15.0%)

10/15/15; 10:55 AM EST = +19; signal line is +12 but algorithm remains short

10/15/15; 9:34 AM EST = +3; signal line is +10

10/15/15; 9:32 AM EST = -11; signal line is +10

10/14/15; 3:43 PM EST = +3; signal line is +9

10/14/15; 12:54 PM EST = -11; signal line is +9; go short 2005; (Benchmark SPX for 2015 = -2.6%)(Keybot algo this trade = +3.9%; Keybot algo for 2015 = +9.7%)(Actual results this trade = +8.1%; Actual results for 2015 = +15.4%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side today at SPX 2005 after an interesting start. Copper actually jumps into the bull camp and semiconductors soar higher but utilities, retail and volatility created negativity and pushed the algo to the short side. Volatility recovers in the final minutes of trading.

The bull-bear battle continues with the algo number only 6 points under the signal line. Stay alert for a whipsaw move back to the long side. If UTIL moves above 589.27 and the SPX moves above 2010, Keybot will likely flip back to the long side but probably only if this occurs after 1 PM EST tomorrow.

The market bears need either VIX above 18.04 or JJC under 28.04 to create selling in the stock market. The VIX begins at 17.96 only 8 pennies in the bull camp (18.03 after the late settlement so it sits directly on the bull-bear level and will pivot one way or the other when the opening bell rings; as volatility goes, the stock market will move in the opposite direction). So bulls need higher utilities, UTIL above 589.27 while the bears need higher volatility, VIX above 18.04. One of these two will likely flinch in Thursday trading.

For the SPX starting at 1994, the bulls need to push above 2010 to regain their mojo, a formidable task, so the bulls will instead focus on pushing utilities higher. The bears need to push the SPX under 1991 to accelerate the downside. A move through 1992-2009 is sideways action for Thursday.

On the last trade, the algorithm program gains about +4% and SSO gains about +8%. The SPX benchmark index is down about -3% this year (SPX 2005 is 54 points below the starting year number at 2059). The Keybot the Quant algorithm actual trading this year is up over +15% creating an 18% spread compared to the benchmark. During the last trade, the model ran from SPX 1929 to 2005; one heck of a rally; 76 handles. The algo exits SSO and enters SDS still using 2x leveraged ETF's. The bears are driving  the bus but the markets remain erratic and unstable. Watch utilities and volatility.

10/18/15; 7:00 PM EST =

10/16/15; 10:00 AM EST =

10/14/15; 3:43 PM EST = +3; signal line is +9

10/14/15; 12:54 PM EST = -11; signal line is +9; go short 2005; (Benchmark SPX for 2015 = -2.6%)(Keybot algo this trade = +3.9%; Keybot algo for 2015 = +9.7%)(Actual results this trade = +8.1%; Actual results for 2015 = +15.4%)

10/14/15; 11:17 AM EST = -11; signal line is +9 but algorithm remains long

10/14/15; 10:46 AM EST = +5; signal line is +9 but algorithm remains long

10/14/15; 10:44 AM EST = +19; signal line is +9

10/14/15; 10:25 AM EST = +35; signal line is +8

10/14/15; 9:36 AM EST = +19; signal line is +6

10/13/15; 12:57 PM EST = +3; signal line is +4 but algorithm remains long

10/13/15; 11:55 AM EST = +19; signal line is +3

10/13/15; 11:33 AM EST = +35; signal line is +2

10/12/15; 1:50 PM EST = +19; signal line is 0

10/12/15; 11:16 AM EST = +35; signal line is -2

10/12/15; 10:56 AM EST = +19; signal line is -4

10/12/15; 10:16 AM EST = +35; signal line is -6

10/11/15; 7:00 PM EST = +19; signal line is -9

10/9/15; 2:31 PM EST = +19; signal line is -11

10/9/15; 12:10 PM EST = +5; signal line is -14

10/9/15; 10:13 AM EST = +19; signal line is -15

10/9/15; 9:36 AM EST = +35; signal line is -18

10/8/15; 3:58 PM EST = +19; signal line is -21

10/8/15; 3:40 PM EST = +3; signal line is -24

10/8/15; 3:16 PM EST = +19; signal line is -26

10/8/15; 2:37 PM EST = +3; signal line is -28

10/8/15; 11:12 AM EST = -27; signal line is -30

10/8/15; 10:42 AM EST = -11; signal line is -31

10/8/15; 10:17 AM EST = -27; signal line is -32

10/8/15; 10:02 AM EST = -11; signal line is -33

10/7/15; 10:40 AM EST = -27; signal line is -34

10/7/15; 10:22 AM EST = -11; signal line is -36

10/7/15; 10:12 AM EST = +5; signal line is -37

10/7/15; 10:02 AM EST = -11; signal line is -39

10/7/15; 9:52 AM EST = +5; signal line is -40

10/7/15; 9:36 AM EST = -11; signal line is -42

10/6/15; 2:11 PM EST = -27; signal line is -43

10/6/15; 10:53 AM EST = -43; signal line is -44

10/6/15; 10:16 AM EST = -27; signal line is -44

10/5/15; 11:12 AM EST = -11; signal line is -46

10/5/15; 10:51 AM EST = -27; signal line is -46

10/5/15; 10:27 AM EST = -11; signal line is -46

10/5/15; 9:36 AM EST = -27; signal line is -47

10/4/15; 7:00 PM EST = -43; signal line is -47

10/2/15; 12:54 PM EST = -43; signal line is -47; go long 1929; (Benchmark SPX for 2015 = -6.3%)(Keybot algo this trade = +1.8%; Keybot algo for 2015 = +5.8%)(Actual results this trade = +3.1%; Actual results for 2015 = +7.3%)

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

Keybot the Quant remains long but is champing at the bit to go short as shown by the algo number below the signal line. Internal programming rules are not fully latched so the flip to the short side is not yet permitted. For  Wednesday, the SPX likely has to drop under 2002, and remain under this level for at least 5 to 7 minutes, and trending lower, and Keybot will likely flip short. If a gap down occurs on Wednesday morning, a timer will likely trigger and the algo will probably not flip short for at least 90 minutes after the opening bell. There are a lot of moving parts currently. The bulls and bears are fighting it out as evidenced by the one point difference in the algo number and signal line.

If JJC (copper) moves above 28.04, or XLF (financials) above 23.35, or UTIL (utilities) above 589.22, any one would do, all bets are off for the short side and the bulls will be  back in business sending the stock market higher.  If SOX (semi's) drops under 620.40 (only a couple points down from current levels), bears will accelerate the downside in stocks. Ditto if the VIX moves above 18.04 or if the RTH drops under 75.70.

All these parameters matter but keep it simple and watch SPX 2002, JJC 28.04 and SOX 620.40. Bears win with lower chips and bulls win with higher copper. For the SPX starting at 2004, the bulls need to push above 2022 to regain their mojo, a formidable task, so instead the bulls will focus on pushing copper, banks and utes higher which will stop the broad market selling. The bears need to push the SPX under 2002 to accelerate the downside. A move through 2003-2021 is sideways action for Wednesday. Flip a coin; anything can happen. Wednesday may be a wild day.

10/18/15; 7:00 PM EST =

10/16/15; 10:00 AM EST =

10/13/15; 12:57 PM EST = +3; signal line is +4 but algorithm remains long

10/13/15; 11:55 AM EST = +19; signal line is +3

10/13/15; 11:33 AM EST = +35; signal line is +2

10/12/15; 1:50 PM EST = +19; signal line is 0

10/12/15; 11:16 AM EST = +35; signal line is -2

10/12/15; 10:56 AM EST = +19; signal line is -4

10/12/15; 10:16 AM EST = +35; signal line is -6

10/11/15; 7:00 PM EST = +19; signal line is -9

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. The algorithm was very active last week printing the most numbers in a very long time so there are many market parameters dancing to and fro trying to impact direction. Bulls need UTIL above 589.45, XLF above 23.36 and/or GTX above 2780 to prove the stock market upside has legs.

The bears need VIX above 17.85 (higher volatility) to stall the market upside and begin broad-based selling. Watch financials closely the XLF 23.36. As banks go the stock market will likely follow and bank earnings are on tap this week beginning tomorrow.

For the SPX starting at 2015, the bulls need to move above 2020 to accelerate higher and the bears need to push under 2008 to accelerate lower. A move through 2009-2019 is sideways action to begin the week. S&P futures are down one point about two hours before the opening bell.

The bulls are happy as the week begins with the algo number 28 points above the signal line. Keybot prints one pre-scheduled number this week on Friday morning.

10/18/15; 7:00 PM EST =

10/16/15; 10:00 AM EST =

10/11/15; 7:00 PM EST = +19; signal line is -9

10/9/15; 2:31 PM EST = +19; signal line is -11

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long through the weekend. Copper leaped higher with the commodities rally creating more bull strength. Financials, however, weakened with bank earnings on tap next week. Volatility also jogs above and below the critical line in the sand ending in the bull camp.

The algo number remains 30 points above the signal line so the bulls have their feet up on the dashboard as they drive the bus. The algo was very active during the week printing more numbers than in recent weeks. Next week's areas and levels of interest most impacting broad market direction can be identified once the Sunday pre-scheduled number prints tomorrow.

10/11/15; 7:00 PM EST =

10/9/15; 2:31 PM EST = +19; signal line is -11

10/9/15; 12:10 PM EST = +5; signal line is -14

10/9/15; 10:13 AM EST = +19; signal line is -15

10/9/15; 9:36 AM EST = +35; signal line is -18

10/8/15; 3:58 PM EST = +19; signal line is -21

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bulls explode markets higher today after the Federal Reserve dovish minutes at 2 PM EST. The algo is very active this week printing another 8 numbers today. The algo number is 40 points above the signal line so the bulls are cruising without a care in the world.

The algo is tracking several parameters now any of which may create a direction change in the stock market. For the upside rally to continue, bulls need either UTIL above 589.45, JJC above 27.93 and/or GTX above 2780. For the upside stock market rally to stall, the bears need either RTH under 75.58, XLF under 23.36 and/or VIX above 17.86. One of these six parameters will flinch telling you the market direction ahead.

For the SPX starting at 2013 on Friday, the bulls need to touch the 2017 handle and bingo, the SPX will be in the 2020's in a  heartbeat. The bears need to push under 1988 to accelerate the downside. A move through 1989-2016 is sideways action to end the week. The bulls are in full control; pay close attention to the banks and XLF 23.36 since price is at 23.39 only three pennies on the bull side. The stock market rally will stall if XLF drops under 23.36.

10/11/15; 7:00 PM EST =

10/8/15; 3:58 PM EST = +19; signal line is -21

10/8/15; 3:40 PM EST = +3; signal line is -24

10/8/15; 3:16 PM EST = +19; signal line is -26

10/8/15; 2:37 PM EST = +3; signal line is -28

10/8/15; 11:12 AM EST = -27; signal line is -30

10/8/15; 10:42 AM EST = -11; signal line is -31

10/8/15; 10:17 AM EST = -27; signal line is -32

10/8/15; 10:02 AM EST = -11; signal line is -33

10/7/15; 10:40 AM EST = -27; signal line is -34

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

Keybot the Quant remains long after another active day for the algo. Copper and retail stocks are controlling market direction currently. Watch JJC 27.95 and RTH 75.57; both are below the levels shown creating negativity in the stock market. Bulls need one or both to turn bullish to prove that the upside has legs.

If the SOX falls under 618.40 and the SPX under 1976, Keybot will likely flip short. For the SPX starting at 1996, the bulls need to move above 1999 and the upside will accelerate. The bears need to move under 1976 to accelerate the downside. A move through 1977-1998 is sideways action for Thursday.

10/11/15; 7:00 PM EST =

10/7/15; 10:40 AM EST = -27; signal line is -34

10/7/15; 10:22 AM EST = -11; signal line is -36

10/7/15; 10:12 AM EST = +5; signal line is -37

10/7/15; 10:02 AM EST = -11; signal line is -39

10/7/15; 9:52 AM EST = +5; signal line is -40

10/7/15; 9:36 AM EST = -11; signal line is -42

10/6/15; 2:11 PM EST = -27; signal line is -43

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

Keybot the Quant remains long as the algo prints three numbers today. Note that the algo number was only one point from the signal line this morning so the bulls and bears are fighting it out in the trenches. The imminent turn notation is in the title line since if SOX drops under 618.34 (now at 622 creating bullishness in the stock market) and the SPX drops under 1972, Keybot will likely flip to the short side. If SOX stays above 618.34, stocks will float sideways with an upward bias. If the RTH moves above 75.58 the bulls will be on easy street with stocks running strongly higher. Also keep an eye on JJC 27.91 which will extend the upside rally.

For the SPX for Wednesday starting at 1980, the bulls need to push above 1992 and the upside will accelerate towards 2000. The bears need to push under 1972 to accelerate the downside. A move through 1973-1979 is sideways action. Watch semiconductors since they are the main influence on market direction currently.

10/11/15; 7:00 PM EST =

10/6/15; 2:11 PM EST = -27; signal line is -43

10/6/15; 10:53 AM EST = -43; signal line is -44

10/6/15; 10:16 AM EST = -27; signal line is -44

10/5/15; 11:12 AM EST = -11; signal line is -46

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long. SOX stays above 618.34 and RTH above 75.58 so the stock market moves higher. JJC remains under 27.91 and VIX above 17.85 so the bears maintain pressure on equities. For Tuesday, bears need lower chips and retail stocks. Bulls need higher copper and lower volatility to verify more upside for the stock market.

For the SPX starting at 1987, the bulls need to push a couple points higher, above 1989, and bingo, an upside acceleration will make the bulls rejoice. The bears need to retrace the big move on Monday a formidable task so instead bears will focus on pushing chips, retail stocks and copper lower and volatility higher.

The bulls are cruising with the algo number 35 points above the signal line so the caution flag is removed. If SOX or RTH turn bearish as described above consider the caution flag to be immediately back in the title line since the bears will be flexing their muscles.

10/11/15; 7:00 PM EST =

10/5/15; 11:12 AM EST = -11; signal line is -46

10/5/15; 10:51 AM EST = -27; signal line is -46

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the new week of trading is underway with the algorithm active printing four numbers from the get-go. Semiconductors are the key to market direction also retail stocks and copper. Watch SOX 618.34. Price is dancing to and fro along this level. Very simply, the stock market will float higher if the SOX is above 618.34 moving higher. The stock market will weaken if SOX dips under 618.34 moving lower.

Also watch RTH 75.58; price is above which creates bull fuel for the stock market so stocks will weaken if this level is lost. JJC 27.91 is a bull-bear line in the sand and price remains under causing market negativity.

10/11/15; 7:00 PM EST =

10/5/15; 11:12 AM EST = -11; signal line is -46

10/5/15; 10:51 AM EST = -27; signal line is -46

10/5/15; 10:27 AM EST = -11; signal line is -46

10/5/15; 9:36 AM EST = -27; signal line is -47

10/4/15; 7:00 PM EST = -43; signal line is -47

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is on the long side to begin the new week of trading. Bulls need higher copper and retail stocks to prove that the rally is sustainable; watch JJC 28.00 and RTH 75.60.

For the SPX starting at 1951, closing at the highs, the bulls need any smidge of positivity and the SPX will run several handles higher after the opening bell. S&P futures begin on the downside on Sunday evening. The bears need to push the SPX under 1894 on Monday to regain their mojo, a formidable task, so instead, bears will focus on keeping the S&P futures negative and preventing copper and retail stocks from moving higher. Copper is trading higher as the new week begins. A move through SPX 1895-1950 is sideways action for Monday. Keybot does not print any pre-scheduled numbers this week during trading hours.

10/11/15; 7:00 PM EST =

10/4/15; 7:00 PM EST = -43; signal line is -47

10/2/15; 12:54 PM EST = -43; signal line is -47; go long 1929; (Benchmark SPX for 2015 = -6.3%)(Keybot algo this trade = +1.8%; Keybot algo for 2015 = +5.8%)(Actual results this trade = +3.1%; Actual results for 2015 = +7.3%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips long at lunch time today at SPX 1929. Utilities may take on less importance next week. Copper and retail stocks will likely become important. The parameters and levels to watch can be pulled from the algo once the Sunday pre-scheduled number prints.

The benchmark SPX is down -6.3% this year. The Keybot the Quant algorithm program is up +5.8% this year and the actual trading is up +7.3%. Keybot exited SDS and entered SSO remaining in double-leveraged ETF's. Markets remain erratic and unstable.

10/4/15; 7:00 PM EST =

10/2/15; 12:54 PM EST = -43; signal line is -47; go long 1929; (Benchmark SPX for 2015 = -6.3%)(Keybot algo this trade = +1.8%; Keybot algo for 2015 = +5.8%)(Actual results this trade = +3.1%; Actual results for 2015 = +7.3%)

10/2/15; 11:36 AM EST = -43; signal line is -47 but algorithm remains short

10/2/15; 11:21 AM EST = -59; signal line is -47

10/2/15; 10:55 AM EST = -43; signal line is -46 but algorithm remains short

10/2/15; 10:34 AM EST = -59; signal line is -45

10/2/15; 9:39 AM EST = -43; signal line is -45 but algorithm remains short

10/2/15; 9:00 AM EST = -59; signal line is -44

10/1/15; 11:07 AM EST = -59; signal line is -44

9/3015; 7:00 PM EST EOM EOQ3 = -43; signal line is -43 but algorithm remains short

9/30/15; 10:02 AM EST = -43; signal line is -42

9/29/15; 10:08 AM EST = -59; signal line is -41

9/29/15; 10:00 AM EST = -43; signal line is -40

9/28/15; 1:59 PM EST = -59; signal line is -39

9/28/15; 1:07 PM EST = -43; signal line is -38

9/28/15; 12:35 PM EST = -59; signal line is -38

9/28/15; 11:53 AM EST = -43; signal line is -37

9/28/15; 11:32 AM EST = -59; signal line is -37

9/27/15; 7:00 PM EST = -43; signal line is -37

9/25/15; 10:00 AM EST = -43; signal line is -37

9/23/15; 11:28 AM EST = -42; signal line is -37

9/23/15; 11:19 AM EST = -58; signal line is -37

9/22/15; 2:39 PM EST = -42; signal line is -37

9/22/15; 1:53 PM EST = -58; signal line is -37

9/21/15; 3:20 PM EST = -42; signal line is -35

9/21/15; 2:50 PM EST = -26; signal line is -35 but algorithm remains short

9/21/15; 11:40 AM EST = -42; signal line is -35

9/21/15; 10:26 AM EST = -26; signal line is -35 but algorithm remains short

9/20/15; 7:00 PM EST = -42; signal line is -36

9/18/15; 12:04 PM EST = -42; signal line is -36

9/18/15; 11:46 AM EST = -26; signal line is -37 but algorithm remains short

9/18/15; 11:34 AM EST = -42; signal line is -38

9/18/15; 11:09 AM EST = -26; signal line is -38 but algorithm remains short

9/18/15; 10:38 AM EST = -42; signal line is -39

9/18/15; 10:24 AM EST = -26; signal line is -40 but algorithm remains short

9/18/15; 9:53 AM EST = -42; signal line is -40; go short 1964; (Benchmark SPX for 2015 = -4.6%)(Keybot algo this trade = -1.6%; Keybot algo for 2015 = +4.0%)(Actual results this trade = -0.6%; Actual results for 2015 = +4.2%)

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

Keybot the Quant remains short. Stocks drop after a disappointing jobs report but the corresponding drop in yields sends utilities higher. The algorithm is champing at the bit to go long but internal parameters will not yet fully latch to permit the move. Watch SPX 1927. Price is at 1916 as this is typed. If the bulls can push the SPX above 1927, Keybot will likely flip long. If UTIL fails below 569.68 then all bets are off and stocks should remain weak into the weekend.

Interestingly, the bulls likely have the upper hand because the UTIL 569.68 expires at the closing bell and all of next week the UTIL 555.12 level will be a key bull-bear level. Price is firmly above so come Monday, the market bulls will have a positive feather in their caps to help create market upside.

Note how UTIL jogs above and below 569.68 today as has been predicted ahead of time this week. The algo number is 4 points above the signal line telling the model to go long but the internal parameters still have to line up properly to permit the flip to the long side. For now, the bears continue to drive the bus. It will be interesting to see if the bulls can push the SPX up towards 1927 today, or not.

10/4/15; 7:00 PM EST =

10/2/15; 11:36 AM EST = -43; signal line is -47 but algorithm remains short

10/2/15; 11:21 AM EST = -59; signal line is -47

10/2/15; 10:55 AM EST = -43; signal line is -46 but algorithm remains short

10/2/15; 10:34 AM EST = -59; signal line is -45

10/2/15; 9:39 AM EST = -43; signal line is -45 but algorithm remains short

10/2/15; 9:00 AM EST = -59; signal line is -44

10/1/15; 11:07 AM EST = -59; signal line is -44

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

Keybot the Quant remains short as the bulls stage a strong intraday recovery in Thursday trading. The bulls keep jogging utilities higher to try and substantiate a relief rally. Note how UTIL comes up 569.68 in the afternoon and fails and in the final minute of trading comes up again to print the 569.68, that the algo identified ahead of time, only to end a few pennies below. It is astounding that the algorithm can call out the key parameter affecting market direction as well as the level to watch before it happens. Watch UTIL 569.68. If utes move above, and the SPX moves above 1927, Keybot will likely flip long. So, depending on how the Monthly Jobs Report goes at 8:30 AM EST, the bulls are in position to flip the algo long on Friday morning.

For the SPX starting at 1924, the bulls need to push above 1927 to accelerate the upside. The bears need to push below 1901 to accelerate the downside. A move through 1902-1926 is sideways action to end the week. Keybot prints a pre-scheduled number before the opening bell. Watch UTIL 569.68 and SPX 1927 to see if the bulls have the beans to likely flip Keybot to the long side.

10/4/15; 7:00 PM EST =

10/2/15; 9:00 AM EST =

10/1/15; 11:07 AM EST = -59; signal line is -44

9/3015; 7:00 PM EST EOM EOQ3 = -43; signal line is -43 but algorithm remains short