STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short through the New Year's Holiday weekend. US stocks do not trade again until Tuesday morning. As per the previous post, both utilities and volatility jump into the bear camp and create the market selling into the weekend. Keybot prints four numbers to close out the year. The algo number is 39 points below the signal line so the bears are happy as they break out bottles of booze to ring in the new year. The bulls are wounded and plan to rest up and prepare to fight on Tuesday.

Utiliites, retail stocks, volatility and copper will play a key role next week. The algo has to be  zeroed for the year this weekend. The Keybot the Quant algorithm kicked everyone's butt on Wall Street this year. Robots are smarter than humans.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/30/16; 3:47 PM EST = +38; signal line is +79

12/30/16; 12:56 AM EST = +54; signal line is +80

12/30/16; 10:51 AM EST = +68; signal line is +81

12/30/16; 10:29 AM EST = +54; signal line is +81

12/29/16; 11:50 AM EST = +68; signal line is +82

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

Keybot the Quant remains short. The algo prints four numbers today. Keybot threatened to go long before lunchtime but it was never any serious threat. Market bulls need higher retail stocks. Market bears need lower utes, copper and higher volatility.

Bulls need RTH above 76.61 (now at 76.53 only 8 pennies away) and stocks will rally higher. If RTH moves above 76.61 and the SPX moves above 2254, Keybot will likely flip long, hence the imminent turn notation is in the title line.

Bears need UTIL under 660.10 (now at 662.93) or JJC under 28.32 (now at 28.54) or VIX above 13.98, call it 14, (now at 13.37). Any one parameter turning bearish will guarantee the downward path ahead for the stock market. If bears cannot flip at least one of these three short, then it will indicate that the bears do not have enough energy to take stocks lower.

For the SPX starting at 2249, the bulls need to move above 2254 and bingo, the upside will accelerate to 2260 in quick order. The bears need to push under 2245 to accelerate the downside which will be under 2240 in a flash. A move through 2246-2253 is sideways action to end the day, week, month, quarter, second half of year and 2016; EOM, EOQ4, EOH2, EOY.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/29/16; 11:50 AM EST = +68; signal line is +82

12/29/16; 11:27 AM EST = +84; signal line is +82 but algorithm remains short

12/29/16; 11:20 AM EST = +68; signal line is +82

12/29/16; 11:08 AM EST = +52; signal line is +82

12/28/16; 9:50 AM EST = +68; signal line is +82; go short 2265; (Benchmark SPX for 2016 = +10.8%)(Keybot algo this trade = +2.8%; Keybot algo for 2016 = +17.6%)(Actual results this trade = +6.6%; Actual results for 2016 = +43.6%)

STOCK MARKET BEARISH - -SHORT -- CAUTION

Keybot the Quant is on the bear side as of today. RTH teased the important 76.60 bull-bear line in the sand and bounced slightly to end the session with RTH at 76.64. Watch this Thursday morning since RTH under 76.60 will create more selling in the stock market. JJC under 28.32 will also create more market selling.

The bulls need UTIL above 660.10 to stop the selling in equities. If UTIL remains below 660 and RTH above 76.60, and JJC above 28.32, like now, status quo, stocks will stumble sideways with a slight downward bias. Listen for any positive or negative news concerning utilities, retail stocks and copper overnight for clues.

For the SPX starting at 2250 on Thursday morning, the bulls need to push above 2271, a 21-point move higher, to prove they have the beans to accelerate price far higher. The bears need to push below 2249, only one point lower, to accelerate the downside. Thus, watch the S&P futures overnight to see if any red is showing. Watch copper as well since that dictates the direction with JJC. A move through SPX 2250-2270 is sideways action for Thursday.

The market bears finally have the ball  back after the big Trump Rally. Will they run to victory or will they stumble then fumble? The algo number is 14 points below the signal line. Watch RTH 76.60 and UTIL 660; they will tell you what you need to know.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/28/16; 9:50 AM EST = +68; signal line is +82; go short 2265; (Benchmark SPX for 2016 = +10.8%)(Keybot algo this trade = +2.8%; Keybot algo for 2016 = +17.6%)(Actual results this trade = +6.6%; Actual results for 2016 = +43.6%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side this morning at SPX 2265. Utilities failed with UTIL slipping under the important 660.10 level. Keep watching this as well as RTH 76.60. RTH is playing around at this level deciding to bounce or die. Stocks will drop lower if retail stocks dip but bulls will float stocks higher if retail stocks move higher. Bulls desperately need UTIL above 660.10 as soon as possible. Bears need UTIL to remain under 660.10 which keeps the door open to the downside for equities.

The benchmark SPX is up nearly +11% this year.On the last trade, the Keybot computer program gains +3% and is up nearly +18% this year and the actual trading gains nearly +7% and is up +44% in 2016. The results have greatly benefited from the move in the Russell small caps ETF's. Keybot exits UWM and enters SDS.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/28/16; 9:50 AM EST = +68; signal line is +82; go short 2265; (Benchmark SPX for 2016 = +10.8%)(Keybot algo this trade = +2.8%; Keybot algo for 2016 = +17.6%)(Actual results this trade = +6.6%; Actual results for 2016 = +43.6%)

12/28/16; 9:38 AM EST = +68; signal line is +82 but algorithm remains long

12/27/16; 12:52 PM EST = +84; signal line is +82

12/27/16; 10:00 AM EST = +68; signal line is +81 but algorithm remains long

12/27/16; 9:36 AM EST = +68; signal line is +80 but algorithm remains long

12/25/16; 7:00 PM EST = +100; signal line is +80

12/23/16; 10:00 AM EST = +100; signal line is +79

12/22/16; 10:21 AM EST = +100; signal line is +77

12/22/16; 10:01 AM EST = +84; signal line is +76

12/22/16; 9:39 AM EST = +100; signal line is +74

12/21/16; 3:59 PM EST = +84; signal line is +72

12/19/16; 3:39 PM EST = +100; signal line is +71

12/19/16; 3:00 PM EST = +84; signal line is +69

12/19/16; 12:04 PM EST = +100; signal line is +69

12/19/16; 11:24 AM EST = +84; signal line is +67

12/19/16; 10:48 AM EST = +68; signal line is +66

12/19/16; 9:57 AM EST = +84; signal line is +66

12/19/16; 9:47 AM EST = +100; signal line is +65

12/19/16; 9:36 AM EST = +84; signal line is +64

12/18/16; 7:00 PM EST = +84; signal line is +63

12/16/16; 3:59 PM EST = +84; signal line is +62

12/16/16; 1:52 PM EST = +68; signal line is +62

12/16/16; 11:36 AM EST = +84; signal line is +61

12/16/16; 9:00 AM EST = +68; signal line is +61

12/14/16; 2:07 PM EST = +68; signal line is +60

12/13/16; 2:20 PM EST = +84; signal line is +60

12/11/16; 7:00 PM EST = +68; signal line is +59

12/9/16; 10:00 AM EST = +68; signal line is +59

12/5/16; 9:47 AM EST = +66; signal line is +59; go long 2204; (Benchmark SPX for 2016 = +7.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +14.8%)(Actual results this trade = -2.3%; Actual results for 2016 = +37.0%)

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

Keybot the Quant remains long as thin trading provides market drama. The algo dropped like a stone at the opening bell as utilities faltered, but the bears were not strong enough to stop the upside rally. Keybot was champing at the bit to go short but the internal programming rules would not allow the move and the algo remains bullish but only by a slim 2 points.

Market bulls need higher utes, retail stocks and copper for Dow 20K and SPX 2300 to print. Market bears need UTIL to drop under 660.10 (now at 661) and SPX to drop under 2266 and Keybot will likely flip short. Bears benefit from lower utes, retail stocks and copper.

For the SPX starting hump day at 2269, the bulls need to touch the 2274 handle and bingo, the upside will accelerate above 2280 in a flash. The bears need to push below 2266 to accelerate the downside. A move through 2267-2273 is sideways for Wednesday.

The bulls remain in control but they can only be the king of the hill for so long. The rocks and soil below their hooves is starting to loosen and give way. Bears need UTIL under 660 and SPX under 2266 so they can throw confetti. If not, the bulls will win, the algo will remain long, and the Dow will likely float higher to 20K.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/27/16; 12:52 PM EST = +84; signal line is +82

12/27/16; 10:00 AM EST = +68; signal line is +81 but algorithm remains long

12/27/16; 9:36 AM EST = +68; signal line is +80 but algorithm remains long

12/25/16; 7:00 PM EST = +100; signal line is +80

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

Keybot theQuant remains long heading into the last trading week of 2016. It appears the algo will log another successful year. Keybot has never posted a negative yearly return since the actual trading went on line five years ago. The algorithm will be zeroed next weekend and the year-end results will be finalized. Trading for the new year, 2017, begins on Tuesday, 1/3/16.

Stock market direction is currently most impacted by utilities, retail stocks and copper. Note how JJC came down to test the JJC 28.28-28.33 level that the algo called out ahead of time. That is impressive that 1's and 0's can tell you that information before it happens.

UTIL begins the week at 660.81. Market bulls need UTIL above 671.78 to prove that the new record highs in stocks will continue. Market bears need UTIL under 658.55, only 2 points lower, to open the door for stock market trouble. Likewise, if RTH loses 76.59 (now at 76.74) and/or JJC drops under 28.28 (now at 28.40), equities will be falling in earnest.

Since, UTIL is 10 points below the 671.78 level, and barring any wild moves at the opening bell, the algo will likely drop from +100 to +84 in the opening minutes, however, that will likely not be enough to cause Keybot to flip short. If either UTIL drops under 658.55, or RTH under 76.59, or JJC under 28.28, any one will do, and the SPX drops under 2259, Keybot will likely flip short, hence the imminent turn notation in the title line. Bulls are okay if they push utilities higher at Monday's opening bell as well as keeping retail stocks and copper elevated.

For the SPX starting at 2264, the bulls need to push higher by any amount and the upside will accelerate so watch the overnight S&P futures to see if any green is showing. The bears need to push SPX under 2259 to accelerate the downside. A move through 2260-2263 is sideways but such a tight range that a winner and loser will likely be anointed. Comically, the last two days were the tightest trading ranges of the year but this will probably end tomorrow.

Keybot prints a pre-scheduled number tomorrow morning one-half hour after the opening  bell. The month, fourth quarter, second half of the year and the year ends on Friday, 12/30/16; EOM, EOQ4, EOH2, EOY, respectively. The algorithm remains maxed out at +100 a truly historic time for the stock market.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  

12/27/16; 10:00 AM EST =

12/25/16; 7:00 PM EST = +100; signal line is +80

12/23/16; 10:00 AM EST = +100; signal line is +79

12/22/16; 10:21 AM EST = +100; signal line is +77

12/22/16; 10:01 AM EST = +84; signal line is +76

12/22/16; 9:39 AM EST = +100; signal line is +74

12/21/16; 3:59 PM EST = +84; signal line is +72

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the market drama continues. Keybot prints one number today before the closing bell. Utilities trend lower in the afternoon and lose the 658.55 level, called out by the algo ahead of time, by 20 cents, to 658.35. The bears are fighting back against the bulls.

The same utility and copper battle determines broad stock market direction ahead. Market bulls need UTIL above 658.55 which signals that the run to Dow 20K is full steam ahead. Market bears need to increase the negative pressure by sending UTIL under 656.19 and/or JJC under 28.33. The interplay of these three parameters determines market direction. If UTIL fails under 656.19 or JJC below 28.33, either one will do, and the SPX drops under 2265, Keybot will likely flip short.

For the SPX starting Thursday at 2265, the bulls need to push above 2271 to accelerate the upside. The bears need to push under 2265 to accelerate the downside. A move through 2266-2270 is sideways action but is such a tight range price will likely choose a direction. Watch those utilities. At the opening bell, bulls win big if UTIL pops above 658.55. Bears win big if utilities sink lower and lose the 656.19. Watch copper trading overnight for hints. The Dow 20K watch continues.

12/25/16; 7:00 PM EST =

12/23/16; 10:00 AM EST =

12/21/16; 3:59 PM EST = +84; signal line is +72

12/19/16; 3:39 PM EST = +100; signal line is +71

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long idling today without printing any numbers. Utilities and copper remain bullish so stocks climb higher with the Dow a hair away from the historic 20,000 level. The same story in the previous post continues for Wednesday. Market bears need UTIL under 658.55 and then also under 656.19 to create strong downside action in the stock market. JJC under 28.33 will also create downside in equities.

If the status quo remains with all three parameters bullish, like now, with prices above the levels shown, then Dow 20K is likely to print on Wednesday. If any one parameter turns bearish, the top may be in for stocks in the near term. If two of the three parameters turn bearish, and the SPX drops below 2266, Keybot will likely flip short.

For the SPX starting at 2271 on hump day, the bulls need to touch the 2273 handle and bingo, the upside will accelerate to 2280 in a flash. Watch to see if the bulls can create two points of upside in the S&P futures overnight. The bears need to push below 2266 to accelerate the downside quickly into the 2250's. A move through 2267-2272 is sideways action for Wednesday. That is a tight range so price will likely make an epic decision tomorrow either catapulting to greatness or collapsing into Hades.

Wednesday may be the epic day where Dow 20,000 prints, or not. If UTIL remains above 658.55, Dow 20K will likely print. The bulls need utilities and copper to remain bullish. If UTIL falls under 658.55, Dow 20K will likely not occur.

The Keybot the Quant algorithm remains at the maximum reading possible at +100 an epic and historic level representing an excessively oberbot stock market. This is history in the making. What will happen next?

12/23/16; 10:00 AM EST =

12/19/16; 3:39 PM EST = +100; signal line is +71

12/19/16; 3:00 PM EST = +84; signal line is +69

STOCK MARKET BULLISH -- LONG -- CAUTION

An epic event occurs yesterday for the Keybot the Quant algorithm. The algo has been recording its data since November 2008 when the stock market was sliding lower during the financial crisis and has never printed a +100 number in its history. Yesterday, Keybot prints +100. The algo is an oscillator that has a minimum reading of -100 and maximum at +100. It is astounding and amazing that the model is pegged into the ceiling at +100. The algo can no longer move any higher; it represents a maximum overbot condition in the stock market. The week is off to a robust start with Keybot printing eight numbers.

Utilities move higher creating more bull fuel for equities. Watch the key levels at UTIL 658.55 and 656.19. UTIL is at 659.62 above both parameters so the stock bulls run higher. The market bears need to push  UTIL under one or both of these levels asap. If not, SPX 2300 and Dow 20K are on the way.

Copper drops yesterday to test the level the algorithm called out yesterday for JJC. Watch JJC 28.32 as a key bull-bear line in the sand. JJC is at 28.63. Bears will  receive downside juice to send stocks lower if copper fails. Bears receive daily beatings due to low volatility. Bears need VIX above 13.92 (now at 11.71) to prove that they can take the stock market substantially lower.

For the SPX starting at 2263, the bulls need 5 points higher to move above 2267 and price will accelerate above 2270 in quick order. The bears need to push below 2258 to accelerate the downside. A move through 2259-2266 is sideways action for Tuesday. S&P futures are up +5 a couple hours before the opening bell as this is typed.

UTIL 658.55 and 656.19, and JJC 28.32 tell the market direction story. If all three parameters remain bullish with price above, Dow 20K and SPX 2300 are imminent. If any of the three fail, stocks will retreat. Interestingly, if both key utility levels fail, and the SPX drops under 2258, Keybot will likely flip short. Utilities and copper will determine the fate of the bulls or bears ahead. Copper is down marginally in overnight trading.

12/25/16; 7:00 PM EST =

12/23/16; 10:00 AM EST =

12/19/16; 3:39 PM EST = +100; signal line is +71

12/19/16; 3:00 PM EST = +84; signal line is +69

12/19/16; 12:04 PM EST = +100; signal line is +69

12/19/16; 11:24 AM EST = +84; signal line is +67

12/19/16; 10:48 AM EST = +68; signal line is +66

12/19/16; 9:57 AM EST = +84; signal line is +66

12/19/16; 9:47 AM EST = +100; signal line is +65

12/19/16; 9:36 AM EST = +84; signal line is +64

12/18/16; 7:00 PM EST = +84; signal line is +63

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long heading into the new week of trading. The UTIL 656-657 level is extremely important over the coming days and will speak volumes about the intermediate term direction for the stock market ahead (weeks and months). UTIL begins the week at 657.72. The market bulls win going forward with Dow 20K and SPX 2300 if UTIL remains above 657 and moves higher. The market bears will win and stop the upside move in the stock market if they can push UTIL under 656.

If UTIL remains above 657, say, for at least seven minutes after Monday's opening bell, the algorithm will likely print a miraculous +100 number fully pegged into the ceiling with no other place to go. Keybot has never printed a +100 number.

The Keybot the Quant algorithm at its heart is an oscillator so the +80 and higher numbers can be thought of as a stock market that is overbot and the -80 to -100 level as oversold.

The bears are punched in the face day after day because volatility remains low. Central bankers maintain their jack boots on the throat of volatility. Bears need VIX above 13.92 (now at 12.20) if they want to growl significantly. The algo is starting to flag copper as a key parameter going forward. Watch JJC 28.20 (now at 29.33) since failure of this level would create downside for the stock market.

Thus, the bulls need UTIL to remain above 657 floating higher and keep volatility under 13.92 and they will be singing songs and drinking Fed wine as stocks print new all-time highs. The bears must immediately spank UTIL under 656. If UTIL loses 656, and the VIX moves above 13.92, and the SPX drops below 2254, Keybot will likely flip short, so caution is warranted.

For Monday with the SPX starting at 2258, the bulls need 10 points higher, to tag 2268, and the upside will accelerate well into the 2270's. The bears need to push 4 points lower below 2254 to accelerate the downside into the 2240's in a flash. A move through 2255-2267 is sideways action to begin the week.

US stock markets close early on Friday at 1 PM EST. Keybot prints one pre-schedulded number this week on Friday morning. The bulls are in control but pay attention to utilities and volatility, the UTIL 656-657 and VIX 13.92 levels, respectively, that will tell the stock market direction story early in the week.

12/25/16; 7:00 PM EST =

12/23/16; 10:00 AM EST =

12/18/16; 7:00 PM EST = +84; signal line is +63

12/16/16; 3:59 PM EST = +84; signal line is +62

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant finishes the week remaining on the long side. Note the battle at UTIL 656-657 that the algo called out ahead of time. UTIL is at 657.72. Bulls need higher utilities to squeeze that little bit more juice out of the upside for the stock market. Bears need UTIL under 657 immediately.

Monday may be a historic event for the Keybot the Quant algorithm. It has never printed +100 but it may on Monday morning. At +84, the algo is very overbot hinting that stocks are overvalued. At +100, the bullishness would be off the charts at an euphoric level only seen once each decade or two (multi-year behavior). The algorithm is an oscillator with a maximum reading of +100 and minimum reading of -100. It will be a rare occurrence if the +100 print occurs. If so, it will guarantee Dow 20K and SPX above 2300.

Next week will continue the battle between utilities and volatility. Copper is starting to appear on the algo's radar screen. Next week's key parameters and levels can be identified after the Sunday pre-scheduled number prints tomorrow.

12/18/16; 7:00 PM EST =

12/16/16; 3:59 PM EST = +84; signal line is +62

12/16/16; 1:52 PM EST = +68; signal line is +62

12/16/16; 11:36 AM EST = +84; signal line is +61

12/16/16; 9:00 AM EST = +68; signal line is +61

12/14/16; 2:07 PM EST = +68; signal line is +60

STOCK MARKET BULLISH -- LONG-- CAUTION

Keybot the Quant remains long and prints two numbers thus far this week. The bulls are in charge with the algo number 8 points above the signal line. The knock-down drag-out fight between bulls and bears continues using utilities and volatility as weapons. Note the drama with UTIL in the 655-657 area Keybot called out ahead of time. The market bulls need UTIL above 657 it is now at 645.

The market bears need volatility, the VIX, to move above 13.95 it is now at 13.19. One of these two parameters will flinch and dictate the path ahead for the stock market. The utes ran higher but then fell on their sword. Perhaps it is volatility's turn for a run higher?

If VIX moves  above 13.95, and the SPX drops under 2248, Keybot will likely flip short. If VIX moves higher towards 14, consider the imminent turn to the downside to be in play for the algorithm.

For the SPX starting at 2253 on Thursday morning, the bulls need to push above 2276 to accelerate the upside. The bears need to push under 2248 to accelerate the downside. A move through 2249-2275 is sideways action. Utilities and volatility are the two market parameters most greatly impacting stock market direction currently.

12/18/16; 7:00 PM EST =

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

12/14/16; 2:07 PM EST = +68; signal line is +60

12/13/16; 2:20 PM EST = +84; signal line is +60

12/11/16; 7:00 PM EST = +68; signal line is +59

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long heading into the new week of trading. The algo number is 9 points above the signal line with the bulls in charge. Bulls need higher utilities, UTIL above 655.34 (now at 645.86) to prove that stocks will continue to rally and the SPX will move above 2300. Over the next two weeks, the UTIL 655-656 level is extremely important so do not be surprised if price plays around at these levels. Above here proves that the bulls are going to keep stocks higher into early next year. If UTIL cannot move above 655 and leaks lower, the broad stock market will likely roll over to the downside.

The market bears are slapped in the face each day with low volatility. Slap, slap. Bears need VIX above 13.90 (now at 11.75) to prove they can push stocks lower. If VIX moves above 13.90, and the SPX drops under 2249, Keybot will likely flip short, hence the caution sign is out. The imminent market turn to the downside will be in play if the VIX moves above 13.90.

Bulls win with UTIL above 655. Bears win with VIX above 13.90. Status quo with these two parameters will send stocks sideways with a slight upward bias. One of these two parameters will flinch, perhaps early in the week, indicating market direction.

For the SPX starting at 2260 on Monday morning the highest closing level in history, the bulls need any smidge of green in the S&P futures overnight and the SPX will be accelerating higher after the opening bell. The bears need to push the SPX below 2249 to accelerate the downside. A move through 2250-2259 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning. 

12/18/16; 7:00 PM EST =

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

12/11/16; 7:00 PM EST = +68; signal line is +59

12/9/16; 10:00 AM EST = +68; signal line is +59

Quarterly Reminder

It is time for the Quarterly Reminder;

The KE Stone blogs, Keybot the Quant, The Keystone Speculator and Keystone the Scribe, only exist if supported by the tens of thousands of daily users around the world. During Keystone’s recent hiatus from the blogs, the emails came in at a fast and furious pace. Everyone did not want the information to stop. Fortunately, for the several hundred thousand international monthly followers of the sites, large and mid-sized donors stepped up and wanted the information to continue; many smaller donors as well which are greatly appreciated.

The quarterly reminders are never directed at the loyal supporters but instead directed at the broader readership. Any donation is welcome no matter how small but as the joke goes, big ones are even better. Keystone likes to see all users of the sites have skin in the game so even a couple bucks shows the willingness to support the information. If the blogs do not receive broad support and participation, they will end.

Many emails are constantly received requesting that the blog sites turn into a subscription-based service but Keystone has no interest in that; he takes it easy all day long. A subscription-based site is work, effort and responsibility, so, humorously, forget that. The blogs will continue as long as they are supported by a broad portion of the audience. If not, they end. So it is a very simple proposition.

Any site proceeds go to charities. Many families had a slightly better Thanksgiving since their tables were filled with more food. Keystone is helping an all-volunteer thrift shop in a nearby town, a very poor and destitute area that provides clothes and other products to help the disadvantaged. As the old saying’s go, “you can’t take money with you” when you croak and “money does not make you happy.” As you age, you realize that providing compassion to the disadvantaged and helping those in need is what provides eternal riches.

Thank you to all. Merry Christmas, Happy Holidays and Happy New Year!

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the weekend. The algo was extremely quiet last week flipping long last Monday morning and then idling the remainder of the week. The Friday pre-scheduled number adds a couple points to the algo number.

Next week utilities and volatility will dictate market direction. Bulls need higher utilities while bears need higher volatility. The key parameters and levels can be pulled from the algo tomorrow after the Sunday pre-scheduled number prints. The bulls continue to march stocks higher.

12/11/16; 7:00 PM EST =

12/9/16; 10:00 AM EST = +68; signal line is +59

12/5/16; 9:47 AM EST = +66; signal line is +59; go long 2204; (Benchmark SPX for 2016 = +7.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +14.8%)(Actual results this trade = -2.3%; Actual results for 2016 = +37.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the wild stock market upside orgy continues. The bulls appear unstoppable. Keybot has been very quiet this week only flipping long after Monday morning's bell and not printing any numbers ever since. The algo is idling along not responding to this week's price action as yet. A pre-scheduled number prints tomorrow morning.

The bulls are in charge with the algo number 7 points above the signal line. The caution flag remains out. The imminent turn to the downside would be in play if the VIX moves above 13.93, and if the SPX drops below 2238, the algo will likely flip short. The market bulls rule the stock market if the VIX remains under 13.93.

Bulls need lower volatility and higher utilities to send stocks higher. Bears need higher volatility and lower commodities to send stocks lower.

For the SPX beginning at 2246 on Friday morning, the bulls need to touch the 2252 handle and bingo, price will accelerate higher towards 2260. The bears need to push under 2238 and boom, stocks will accelerate lower towards 2230. A move through 2239-2251 is sideways action to finish the week. The bears need higher volatility or they got nothing. There will probably be drama around the bull-bear line in the sand identified by Keybot at VIX 13.93; watch it closely.

12/11/16; 7:00 PM EST =

12/9/16; 10:00 AM EST =

12/5/16; 9:47 AM EST = +66; signal line is +59; go long 2204; (Benchmark SPX for 2016 = +7.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +14.8%)(Actual results this trade = -2.3%; Actual results for 2016 = +37.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side shortly after this morning's opening bell at SPX 2204. The low volatility slapped the bears in the face. Slap, slap. The VIX 13.90 level is key. Bulls rule below VIX 13.90 while market bears rule above VIX 13.90. VIX is at 12.17.

Bears need the higher volatility and will also benefit from lower retail stocks (RTH 77.17 is the current bull-bear line in the sand) and lower chips (SOX 836 is a bull-bear line in the sand). Bulls need to maintain the low volatility and sends utilities higher, UTIL above 655, to gather more upside steam for stocks.

For the SPX starting at 2205, the bulls need to move above 2209 and it is off to the races higher. The bears need to push under 2200 to regain their mojo. A move through 2201-2208 is sideways action for Tuesday.

Watch VIX 13.90. If VIX moves above 13.90, consider the imminent turn to be in play, and if the SPX then falls under 2200, Keybot will likely whipsaw back to the short side. This is the mirror image set up of the prior day. Stay alert for a whipsaw especially with the current erratic and unstable markets.

The S&P 500 benchmark index is up +7.8% this year. During the last two-day trade, the Keybot computer program lost one-half percent and is up +15% on the year double the benchmark. The actual trading is punished more than -2% on the last trade due to the larger and more violent moves with leveraged ETF's. Keybot exits TWM and enters UWM. The actual trading is up +37% on the year. The year likely has more drama yet to play out during the next four weeks.

12/11/16; 7:00 PM EST =

12/9/16; 10:00 AM EST =

12/5/16; 9:47 AM EST = +66; signal line is +58; go long 2204; (Benchmark SPX for 2016 = +7.8%)(Keybot algo this trade = -0.5%; Keybot algo for 2016 = +14.8%)(Actual results this trade = -2.3%; Actual results for 2016 = +37.0%)

12/5/16; 9:36 AM EST = +66; signal line is +58 but algorithm remains short

12/4/16; 7:00 PM EST = +52; signal line is +58

12/2/16; 1:10 PM EST = +52; signal line is +58

12/2/16; 12:52 PM EST = +66; signal line is +58 but algorithm remains short

12/2/16; 12:42 PM EST = +52; signal line is +58

12/2/16; 10:45 AM EST = +66; signal line is +59 but algorithm remains short

12/2/16; 9:00 AM EST = +52; signal line is +58

12/1/16; 3:59 PM EST = +52; signal line is +58

12/1/16; 3:15 PM EST = +36; signal line is +58

12/1/16; 12:58 PM EST = +52; signal line is +58; go short 2193; (Benchmark SPX for 2016 = +7.3%)(Keybot algo this trade = +3.6%; Keybot algo for 2016 = +15.3%)(Actual results this trade = +22.3%; Actual results for 2016 = +39.3%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side to begin the new week of trading. Italy's referendum and Austria's election may sends stocks wildly one way or the other on Monday so flip a coin. The bears are in charge of the stock market currently with the algo number 6 points under the signal line.

Monday's stock market direction is dictated by a battle between retail stocks and volatility. Market bulls win and a rally will be in play if VIX drops under 13.85 (now at 14.12). Market bears win if RTH drops under 77.17 (now at 77.79). In addition to weaker retail stocks, if the semiconductors weaken, especially with SOX dropping under 835 and lower, the broad stock market will be dropping like a stone.

For the SPX starting the week at 2192, the bulls need to touch the 2198 handle and bingo, price will be above 2000 in a heartbeat heading higher. The bears need the SPX to drop under 2188 to accelerate the downside. A move through 2189-2197 is sideways action to begin the week.

Bulls win with lower volatility. Bears win with lower retail and chip stocks. Keybot prints one pre-scheduled number this week on Friday morning. The caution flag is out since volatility may go either way tomorrow. If VIX drops under 13.85, consider the imminent turn to be in play, and if the SPX moves above 2198, Keybot will likely flip long.

12/11/16; 7:00 PM EST =

12/9/16; 10:00 AM EST =

12/4/16; 7:00 PM EST = +52; signal line is +58

12/2/16; 1:10 PM EST = +52; signal line is +58

12/2/16; 12:52 PM EST = +66; signal line is +58 but algorithm remains short

12/2/16; 12:42 PM EST = +52; signal line is +58

12/2/16; 10:45 AM EST = +66; signal line is +59 but algorithm remains short

12/2/16; 9:00 AM EST = +52; signal line is +58

12/1/16; 3:59 PM EST = +52; signal line is +58

12/1/16; 3:15 PM EST = +36; signal line is +58

12/1/16; 12:58 PM EST = +52; signal line is +58; go short 2193; (Benchmark SPX for 2016 = +7.3%)(Keybot algo this trade = +3.6%; Keybot algo for 2016 = +15.3%)(Actual results this trade = +22.3%; Actual results for 2016 = +39.3%)

November Publication of the Daily Chronology of Global Markets and World Economics 2016-11 is Available on Amazon; Trump Wins Stocks Rally; Donald Trump 45th President of the United States; Stocks Print All-Time Highs SPX 2214 INDU 19225 COMPQ 5404 RUT 1347; Global Bond Rout (Yields Explode Higher); India Cash-Swap Program; Oil Rallies on OPEC Production Cut; Market Angst Ahead of Italy Referendum

The November publication of the Daily Chronology of Global Markets and World Economics 2016-11 is available through Amazon (AMZN). The epic market action continues with Donald Trump elected as the 45th president of the United States (POTUS). A huge (or as Donald Trump says, “‘yuge”) Trump Rally occurs in the stock market after the election with a corresponding bond rout (lower prices higher yields).

November’s Cover Highlights;

TRUMP WINS STOCKS RALLY

DONALD TRUMP 45TH PRESIDENT OF THE UNITED STATES

STOCKS PRINT ALL-TIME RECORD HIGHS

SPX 2214 INDU 19225 COMPQ 5404 RUT 1347

GLOBAL BOND ROUT (YIELDS EXPLODE HIGHER)

INDIA CASH-SWAP PROGRAM

OIL RALLIES ON OPEC PRODUCTION CUT

MARKET ANGST AHEAD OF ITALY REFERENDUM

The month of November is historic for markets. The polls were wrong in predicting the Brexit vote and they were wrong again predicting Hillary Clinton to defeat Donald Trump. The orange-headed bombastic clown took the prize from the scandal-ridden liar in the pantsuit. The S&P futures crashed as the election results came in, however, after Trump’s early Wednesday, 11/9/16, well-received acceptance speech, stocks took off to the upside and never looked back for an epic three-week rally.

The Daily Chronology of Global Markets and World Economics is the only document available that recorded the futures, stocks, bond and currency moves in real-time as election results came in. That was quite a night of drama on Tuesday, 11/8/16, into Wednesday morning and it can only be re-lived by reading the chronology. Market enthusiasts will reference this month’s chronology for years to come since the 2016 presidential election drama is explained as it unfolds in real-time, hour by hour.

The four major stock indexes, the S&P 500, Dow Jones Industrials, Nasdaq Composite and Russell 2000 small caps all print historic all-time highs in November. Global bonds crash with yields going parabolic. Those that have been touting inflation for several years proclaim that this time inflation is here to stay. The jury remains out.

The November issue includes the results and market reactions to both the 11/4/16 and 12/2/16 job reports. OPEC reaches an oil production cut agreement which sends oil prices vertically higher with WTIC (West Texas Intermediate Crude oil) testing the 50-52 price level for the fourth time since May.

India is undergoing a major currency shift where all large cash bills are being removed from society as a means of decreasing corruption, tax evasion and black market movement of goods. The highest bill now in circulation in India is equivalent to about $15 in the United States (between a $10 bill and $20 bill). The India government does not have enough of a supply of small bills showing a gross lack of planning. India’s economy suffers from the move with GDP slipping a touch and the stock market sinking.

The drama ahead is the Italian referendum vote on Sunday, 12/4/16. This may create turmoil with the insolvent Italian banks which are pieces of garbage. Austrian elections are also occurring on 12/4/16.

The chronology explains the reaction in stocks, bonds and currencies to key events and economic data releases. If you are trying to make sense of the markets this is the resource for you. No other publication exists in this format where the stock, bond and currency moves are provided and explained as world events take place in real-time.

The chronology records economic history preventing revisionist tampering in future years. Many of the same asset managers telling everyone to go long the market in 2007-2008 repeat the same mantra in 2015-2016. The stock market topped out in May 2015 which placed anyone that listened to television pundits over the last couple years either flat or underwater on their long trades. The central banker go juice has pumped stocks higher from February of this year to present creating new all-time highs and rewarding those that blindly remain long with full confidence in the Federal Reserve’s Keynesian schemes.

Analyst and strategist quotes and words are recorded in the chronology so credit or disdain can be handed out in the future. If a multi-year top is printing, the chronology serves as the most accurate accounting of the stock market topping process ever recorded in economic and market history. The chronology is the most reliable and easy to understand source for explaining global markets. The chronology is cheap and very easy to read and avoids using fancy ten-dollar college words.

As always, all monthly publications of the Daily Chronology of Global  Markets and World Economics are available from the links in the margins or simply searching on Amazon or Google. The monthly publication contains updated information not posted on this web site as well as clarifications, edits and refinements to the ongoing daily blog text.

We are living through historic stock market and economic times. The daily chronology is the most accurate accounting on how the stock market tops and bottoms occur in real-time. The monthly publications are compatible with any electronic device and include an extensive Business Acronym List and Ticker Symbol List. The Acronym List is the most comprehensive business-related acronym list available on the internet. The chronology is not available in hard copy and only distributed around the world electronically.

The KE Stone Series of blogs are viewed by 100's of thousands of people around the globe each month including money managers, strategists, analysts, traders, investors, teachers, students, historians, economists, current event enthusiasts, hedge fund managers, political junkies, futurists and folks that truly want to understand how the world's economic systems and markets function. All readers should support the KE Stone family of blogs so more information, articles, stories, market and economic insight, charts and technical analysis can be provided. The blogs aid charities and will only continue if supported by the thousands of daily users.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 2193 at about 1 PM EST this afternoon. Volatility spikes through the roof creating market weakness. The algo number is 6 points below the signal line so caution is warranted. The algorithm may whipsaw back to the long side over the next day especially in these erratic and shaky markets.

Bulls need VIX under 13.86 and they can stop the stock market selling. Bears need to push VIX above 14.90 to accelerate the market selling. VIX is currently printing at 14.24. Also, if SOX moves under 835 and/or RTH under 77.17, chips and retail stocks, respectively, the selling will exacerbate. Watch  these 3 parameters to gauge stock market direction ahead.

The benchmark SPX index is up +7.3% this year. The Keybot the Quant algorithm program gains +3.6% on the last trade and is up over +15% this year. The actual trading was in UWM which catapulted over +22% higher with the total return for the year now above +39%. The last trade was big with that hefty Trump Rally. Keybot exited UWM and entered TWM. Stay alert for a whipsaw which would only potentially happen if the VIX falls back under 13.86.

12/4/16; 7:00 PM EST =

12/2/16; 9:00 AM EST =

12/1/16; 12:58 PM EST = +52; signal line is +58; go short 2193; (Benchmark SPX for 2016 = +7.3%)(Keybot algo this trade = +3.6%; Keybot algo for 2016 = +15.3%)(Actual results this trade = +22.3%; Actual results for 2016 = +39.3%)

12/1/16; 12:14 PM EST = +52; signal line is +57 but algorithm remains long

12/1/16; 11:49 AM EST = +66; signal line is +57

12/1/16; 11:18 AM EST = +52; signal line is +56 but algorithm remains long

12/1/16; 11:09 AM EST = +66; signal line is +55

12/1/16; 10:54 AM EST = +52; signal line is +54 but algorithm remains long

11/30/16; 7:00 PM EST EOM = +66; signal line is +53

11/30/16; 9:36 AM EST = +66; signal line is +51

11/29/16; 3:59 PM EST = +68; signal line is +50

11/29/16; 3:45 PM EST = +52; signal line is +48

11/29/16; 3:28 PM EST = +68; signal line is +47

11/29/16; 3:08 PM EST = +52; signal line is +45

11/29/16; 2:50 PM EST = +68; signal line is +44

11/29/16; 2:12 PM EST = +52; signal line is +42

11/29/16; 10:50 AM EST = +68; signal line is +41

11/29/16; 10:22 AM EST = +52; signal line is +40

11/29/16; 10:00 AM EST = +68; signal line is +40

11/29/16; 9:56 AM EST = +67; signal line is +38

11/29/16; 9:36 AM EST = +51; signal line is +37

11/28/16; 9:36 AM EST = +65; signal line is +35

11/27/16; 7:00 PM EST = +51; signal line is +34

11/25/16; 11:19 AM EST = +51; signal line is +33

11/23/16; 10:00 AM EST = +65; signal line is +32

11/21/16; 10:30 AM EST = +62; signal line is +30

11/20/16; 7:00 PM EST = +48; signal line is +28

11/17/16; 9:00 AM EST = +48; signal line is +27

11/16/16; 2:12 PM EST = +48; signal line is +25

11/16/16; 9:36 AM EST = +34; signal line is +24

11/15/16; 1:17 PM EST = +48; signal line is +23

11/15/16; 12:37 PM EST = +32; signal line is +22

11/15/16; 11:01 AM EST = +48; signal line is +21

11/15/16; 10:16 AM EST = +34; signal line is +19

11/14/16; 2:25 PM EST = +18; signal line is +18 but algorithm remains long

11/14/16; 12:46 PM EST = +34; signal line is +18

11/14/16; 12:13 PM EST = +18; signal line is +17

11/14/16; 9:52 AM EST = +34; signal line is +18

11/13/16; 7:00 PM EST = +18; signal line is +17

11/11/16; 10:00 AM EST = +18; signal line is +18 but algorithm remains long

11/10/16; 11:27 AM EST = +17; signal line is +18 but algorithm remains long

11/10/16; 10:53 AM EST = +1; signal line is +19 but algorithm remains long

11/10/16; 10:07 AM EST = +17; signal line is +21 but algorithm remains long

11/10/16; 10:02 AM EST = +33; signal line is +22

11/10/16; 9:46 AM EST = +47; signal line is +22

11/10/16; 9:37 AM EST = +31; signal line is +23

11/9/16; 1:26 PM EST = +17; signal line is +23 but algorithm remains long

11/9/16; 12:37 PM EST = +33; signal line is +24

11/9/16; 12:21 PM EST = +17; signal line is +24 but algorithm remains long

11/9/16; 11:51 AM EST = +33; signal line is +25

11/9/16; 9:41 AM EST = +17; signal line is +25 but algorithm remains long

11/7/16; 9:36 AM EST = +33; signal line is +27; go long 2116; (Benchmark SPX for 2016 = +3.5%)(Keybot algo this trade = +0.3%; Keybot algo for 2016 = +11.7%)(Actual results this trade = -1.0%; Actual results for 2016 = +17.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long heading into the Thursday trading session. Utilities were slapped lower so bears rejoice but at the same time commodities  spiked higher nullifying the cheers. The bulls remain in control and need UTIL above 654.47 to prove they can take stocks higher.

Market bears need either VIX above 13.86 and/or GTX under 2248. If either parameter turns bearish, consider the imminent turn to be in play, and if the SPX is trading under 2199 heading lower, Keybot will likely flip short. Bears need one of these two parameters to flip bearish to prove that they can take the stock market lower.

For the SPX beginning at 2199, the bulls need to push above 2214 to accelerate a multi-handle up move to 2220 and new all-time records. The bears need to push under 2199 to accelerate the downside. S&P futures are flat about 45 minutes before the opening bell. A move through 2200-2213 is sideways action for Thursday. Bulls need stronger utilities while bears need higher volatility and lower commodities. Keybot prints a pre-scheduled number tomorrow morning.

12/4/16; 7:00 PM EST =

12/2/16; 9:00 AM EST =

11/30/16; 7:00 PM EST EOM = +66; signal line is +53

11/30/16; 9:36 AM EST = +66; signal line is +51

11/29/16; 3:59 PM EST = +68; signal line is +50

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long after a very active day for the algorithm the most active in quite some time. Note how UTIL launched to test the UTIL 654.47 area and battled there all day; Keybot called out the exact level before it happened. This level remains key. It is not a mystery. The algorithm tracks the 50-week MA with UTIL which is currently 654.47 and price is at 654.54 seven cents above this bull-bear line in the sand creating lift in the broad stock market.

Bulls need UTIL to remain above 654.47 and head higher to prove that stocks can rally. If GTX moves above 2248, the bulls will receive more upside fuel for the stock market. The bears need to push UTIL under 654.47 and this will create weakness in the stock market. The bears will create significant downside selling if the VIX moves above 13.85.

For the SPX starting at 2205, the bulls need to move above 2210 and bingo, price pops to the all-time highs at 2213 in a heartbeat, and then higher. The bears need to push under 2198 to create a downside acceleration. A move through 2199-2209 is sideways action for Wednesday.

If UTIL moves under 654.47 and VIX above 13.85, Keybot wil llikely flip short. Also, if UTIL maintains the jogging behavior where price oscillates above and below 654.47 two or three times on Wednesday, this behavior may hint that the algo may go short if SPX drops under 2198. Watch UTIL 654.47 at the opening bell since it will tell you the market direction story.

12/4/16; 7:00 PM EST =

12/2/16; 9:00 AM EST =

11/30/16; 7:00 PM EST EOM =

11/29/16; 3:59 PM EST = +68; signal line is +50

11/29/16; 3:45 PM EST = +52; signal line is +48

11/29/16; 3:28 PM EST = +68; signal line is +47

11/29/16; 3:08 PM EST = +52; signal line is +45

11/29/16; 2:50 PM EST = +68; signal line is +44

11/29/16; 2:12 PM EST = +52; signal line is +42

11/29/16; 10:50 AM EST = +68; signal line is +41

11/29/16; 10:22 AM EST = +52; signal line is +40