STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side this afternoon at SPX 2045. The move was a result of the ECB rate decision and the central bank failing to increase the monthly QE purchases. The SPX dropped a huge 43 handles intraday. The Monthly Jobs Report is tomorrow so the markets are a coin-flip and prone to another wild reaction like today either strongly up or strongly down. The algo wants to flip back to the long side with the algo number 5 points above the signal line but the programming rules will not currently allow the whipsaw back to the bull side.

The model will likely remain short to finish the week unless a huge upside day occurs. Volatility, the SPX and financials are causing the market unrest. For Friday, the bears need VIX above 18.46 and/or XLF under 24.10 and that will prove that down is the direction forward for stocks. The bulls need to push the SPX above 2052.45 (now at 2049.62) and that will confirm that the upside rally is back in business.

For the SPX starting at 2050, the bears can accelerate the downside if the 2042 level fails. The bulls need to push above 2085 to regain their mojo so instead the bulls will focus on pushing volatility lower and the SPX above 2052 and financials higher.

On the last trade, the algo program loses -1% and the actual trading loses -1.7%. Keybot exits SSO and enters SDS. Keybot prints a pre-scheduled number in the morning before the opening bell.

12/6/15; 7:00 PM EST =

12/4/15; 9:00 AM EST =

12/3/15; 3:59 PM EST = +3; signal line is -2 but algorithm remains short

12/3/15; 2:45 PM EST = -11; signal line is -3; go short 2045; (Benchmark SPX for 2015 = -0.7%)(Keybot algo this trade = -0.9%; Keybot algo for 2015 = +14.1%)(Actual results this trade = -1.7%; Actual results for 2015 = +23.7%)

12/3/15; 2:32 PM EST = -11; signal line is -4 but algorithm remains long

12/3/15; 2:27 PM EST = +3; signal line is -5

12/3/15; 2:19 PM EST = +17; signal line is -7

12/3/15; 2:09 PM EST = +3; signal line is -9

11/30/15; 7:00 PM EST EOM = +17; signal line is -10

11/29/15; 7:00 PM EST = +17; signal line is -11

11/25/15; 10:00 AM EST = +17; signal line is -11

11/24/15; 10:00 AM EST = +16; signal line is -11

11/22/15; 7:00 PM EST = +19; signal line is -11

11/18/15; 11:19 AM EST = +19; signal line is -10; go long 2063; (Benchmark SPX for 2015 = +0.2%)(Keybot algo this trade = +1.5%; Keybot algo for 2015 = +15.0%)(Actual results this trade = +1.8%; Actual results for 2015 = +25.4%)