STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short a short time ago at SPX 2050. The algo number is currently 31 points under the signal line. Watch the SPX 2052-2053 level as an important bull-bear line in the sand. Ditto VIX 18.50. Ditto XLF 24.23. Financials failed, then volatility, then the SPX 2053 level taking the broad stock market lower and flipping Keybot to the short side.

For the last trade, the model logs its third loss in a row with both the computer program and actual trading losing about -1%. The losses are marginal and Keybot remains strongly higher on the year with about three weeks of trading remaining. The benchmark SPX index is negative on the year. Keybot exited SPY and entered SH staying with the single ETF's due to the whipsaw volatility. The algo will employ single ETF's until early January (when a 35-day timing period ends) where it will resume trading 2x ETF's.

Watch SPX 2053 which would signal the all-clear for bulls and an upside rally. The stock market remains in trouble under SPX 2053 which is a 'cliff' level for the stock market. The bears are driving the bus. As always remain alert for a whipsaw back to the long side. With the VIX (volatility) rising, the intraday and day to day price swings in the major indexes (SPX, INDU, COMPQ, RUT) will become larger and more violent.

12/11/15; 10:00 AM EST =

12/9/15; 12:27 PM EST = -27; signal line is +4

12/9/15; 12:25 PM EST = -13; signal line is +5; go short 2050; (Benchmark SPX for 2015 = -0.4%)(Keybot algo this trade = -0.9%; Keybot algo for 2015 = +12.0%)(Actual results this trade = -0.9%; Actual results for 2015 = +20.6%)

12/9/15; 11:25 AM EST = +1; signal line is +5 but algorithm remains long

12/9/15; 9:43 AM EST = +17; signal line is +5

12/9/15; 9:36 AM EST = +1; signal line is +5 but algorithm remains long

12/8/15; 3:50 PM EST = +17; signal line is +5

12/8/15; 3:31 PM EST = +1; signal line is +4 but algorithm remains long

12/6/15; 7:00 PM EST = +17; signal line is +4

12/4/15; 9:48 AM EST = +17; signal line is +3; go long 2069; (Benchmark SPX for 2015 = +0.5%)(Keybot algo this trade = -1.2%; Keybot algo for 2015 = +12.9%)(Actual results this trade = -2.2%; Actual results for 2015 = +21.5%)