STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the new week of trading. The algorithm has not printed any numbers (except for the pre-scheduled numbers) for 10 trading days (two weeks) which verifies the tight sideways move in stocks. This behavior is record-setting for the algo. Keybot has never went this long without printing a number during trading hours ever in its 8-year history. What will happen? Who knows? Markets appear to be in uncharted waters.

Bulls need GTX, commodities, above 2283 to guarantee sustainable upside in stocks. Bears need JJC, copper, under 24.87, to flush the stock market lower. VIX above 15 will also help the bears. These parameters have stumbled sideways without changing status over the last week or so which sends the stock market sideways. Since commodities and copper are directly impacted by the US dollar index, the move in the buck will likely dictate the direction in stocks; it is a battle between copper and the general commodities complex.

For the SPX starting at 2174 on Monday morning, the bulls need to push above 2177, which is the all-time record high in history, and stocks will accelerate higher beginning the week with a bull party. Look for three positive points in the S&P futures overnight to see if the bulls have the strength. The bears need to push the SPX under 2163 and boom, stocks will accelerate lower. If JJC or VIX turns bearish in conjunction with SPX under 2163, Keybot will likely flip short. The SPX moving through 2164-2176 is sideways action to begin the week.

Monday is the first day of trading for August. Keybot prints one pre-scheduled number this week on Friday morning before the opening bell. Watch copper trading overnight as another hint on broad market direction for Monday.

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

8/5/16; 9:00 AM EST =

7/31/16; 7:00 PM EST EOM = +79; signal line is +75

7/29/16; 10:00 AM EST = +79; signal line is +74

July Publication of Daily Chronology of Global Markets and World Economics 2016-07 is Available from Amazon; SPX (S&P 500) and INDU (Dow Industrials) All-Time Highs; COMPQ (Nasdaq Composite) and RUT (Russell 2000) New 2016 Highs; NDX (Nasdaq 100) 16-Year High; Low Bond Yields; Italian Banks Crumbling; New UK PM Theresa May; Turkey Coup Fails; Terrorism Increases Around the World

The July publication of the Daily Chronology of Global Markets and World Economics 2016-07 is available through Amazon (AMZN). The epic market action continues.

July's headline balloons on the cover of this month's publication are;
SPX 2177 and INDU 18590 All-Time Record Highs
COMPQ 5176 and RUT 1225 New 2016 Highs
NDX 4743 New 16-Year high
Record Low Bond Yields
Italian Bank Turmoil
New UK PM Theresa May
UK Property Fund Redemptions Frozen
Turkey Coup Fails Erdogan's "Purge" Begins
Next POTUS is Either Clinton, Trump, Johnson or Stein
Terrorist Attacks Increase Globally

After the Brexit drama in late June, the BOE stepped in promising huge stimulus as well as reducing banking regulations which creates a strong recovery rally in stock markets. Central bankers such as the BOE, Fed, ECB, BOJ and PBOC keep pumping stocks higher. The chronology explains how the central bankers are the market. Global yields print new record lows led to the negative side by Switzerland, Japan and Germany. Theresa May is crowned the new UK prime minister. Cameron is sent packing after the Brexit vote.

The Italian banks are very sick and investment bankers, central bankers and politicians meet daily to figure away to recapitalize the garbage. The sick European banks may create global contagion. DB (Deutsche Bank) remains ill and may take the entire financial system down.

The chronology describes the reactions to economic data such as the Monthly Jobs Reports in real-time. There is no other document available on the world wide web that records the action in real-time with common sense easy-to-understand detail. Inflation, that the Federal Reserve has tried to create for seven years with their obscene Keynesian programs, cannot exist without wage inflation occurring so each jobs report is very important.

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, however, the central banker go juice has pumped stocks higher from February to August to new all-time highs rewarding those that blindly remain long with full confidence in the Federal Reserve.

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 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.

Download this valuable resource today. Remember to support the KE Stone Series of blogs (Keystone the Scribe, The Keystone Speculator and Keybot the Quant) through donations, the daily chronology book sales and honoring advertisers that support the original free content provided in the blogs. The blog proceeds aid charities.

The free blog content is posted in proportion to the advertising, book and donation income received. Thus, you folks working at the large money-center banks around the world need to let some moths out of your wallets if you want this unique trading and economic information, that is not available elsewhere, to continue.

The KE Stone Series of blogs are viewed by 100's of thousands of people around the globe each month including money managers, investors, students, traders, historians, economists, teachers, current event enthusiasts, hedge fund managers, political junkies and folks that truly want to understand how the world's economic systems and markets function. All readers should support the blogs to expand the information provided.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the uneventful week (for the algorithm) continues. The odd behavior is ongoing for the last couple weeks with markets idling sideways unwilling to break either way. Keybot has not printed any numbers this week except the pre-scheduled numbers. The bulls remain in control with the algo number five points above the signal line.

Bulls continue to need to drive commodities, GTX, above 2284 but it keeps leaking lower. Bears need to drive copper, JJC, below 24.87 but it remains buoyant well above 25. Bears would also benefit with VIX above 15.00 but volatility sits at 12.10 with traders remaining fearless. The beat goes on.

7/31/16; 7:00 PM EST EOM =

7/29/16; 10:00 AM EST = +79; signal line is +74

7/26/16; 10:00 AM EST = +81; signal line is +74

7/24/16; 7:00 PM EST = +82; signal line is +74

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long heading into the new week of trading. The algo did not print any numbers last week except for the pre-scheduled number a very rare occurrence. Market behavior is very strange the last few weeks and months. Keybot prints two pre-scheduled numbers this week one on Tuesday morning and one on Friday morning. The month ends, EOM, on Friday.

Market bulls need to push commodities higher, GTX above 2300, to prove that they have the beans to take the stock market ever higher. Bears need to push the VIX above 15.10 and/or JJC under 24.75 to prove that the stock market will begin trailing lower. If the status quo remains, stocks stumble sideways with a slight upward bias.

For Monday for the SPX starting at 2175, the bulls need any smidge of green in the overnight S&P futures and bingo, the S&P 500 will accelerate several handles higher towards 2181. The market bears need to push under 2163 to accelerate the downside. A move through 2164-2174 is sideways action to begin the week. The bulls are in control but higher volatility and/or lower copper will send the stock market lower.

7/31/16; 7:00 PM EST EOM =

7/29/16; 10:00 AM EST =

7/26/16; 10:00 AM EST =

7/24/16; 7:00 PM EST = +82; signal line is +74

7/19/16; 9:00 AM EST = +82; signal line is +75

7/17/16; 7:00 PM EST = +82; signal line is +75

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo idles along this week without printing any numbers except for the pre-scheduled number on Tuesday morning. The idle action with Keybot verifies the sideways move in markets over the last few days. Market bulls need higher commodities; GTX above 2300. Bears need higher volatility; VIX above 15.22.

In general, key parameters currently impacting market direction are commodities, volatility, copper and financials. The moves in these parameters dictate stock market direction. Remember, volatility moves inversely to equities. If VIX moves above 15.22, or XLF under 23.00, Keybot will likely flip short.

For the SPX at 2165 for Friday trading, the bulls need to touch 2175 and bingo, the upside will accelerate and if GTX turns bullish, stocks will rally strongly higher and not look back. The bears need to push below 2160 and boom, stocks will accelerate lower. A move through 2161-2174 is sideways action. The beat goes on. Sometimes after a sideways lull in the market, a wild acceleration phase occurs; the mystery is will it be up, or down?

7/24/16; 7:00 PM EST =

7/19/16; 9:00 AM EST = +82; signal line is +75

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long and is very calm thus far this week not printing any numbers except for the pre-scheduled number before the opening bell. Bulls need GTX, commodities, above 2306 to prove that the stock market will travel higher. Bears need to push JJC, copper, under 24.56 to prove they can take the market lower. Bears would also benefit from weaker banks and higher volatility. Stocks are idling sideways.

7/24/16; 7:00 PM EST =

7/19/16; 9:00 AM EST = +82; signal line is +75

7/17/16; 7:00 PM EST = +82; signal line is +75

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to begin the new week of trading. The bears stopped the upside rally with lower commodities. Lower copper is likely needed for the algorithm to flip short. Market bulls will celebrate with higher commodities, GTX above 2306, which will send stocks strongly higher. Bears will be victorious if GTX remains under 2306 and if JJC drops under 24.56. This would require a large drop in copper so if you see copper selling off strongly overnight that is a hint that the market bears may be favored on Monday.

If JJC drops under 24.56, and SPX under 2156, Keybot will likely flip short. The SPX begins the week at 2165. The bears need to push under 2156 to accelerate the downside. The bulls need to push above 2169 to accelerate the upside.

Keybot prints one pre-scheduled number this week on Tuesday morning. The bulls are in charge but if copper drops in earnest consider a turn to be imminent. Interesting, copper is trading down -0.6% to 2.22 on Sunday evening but bears will need lots more.

7/24/16; 7:00 PM EST =

7/19/16; 9:00 AM EST =

7/17/16; 7:00 PM EST = +82; signal line is +75

7/15/16; 11:07 AM EST = +82; signal line is +75

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the dramatic week continues. The bulls are in control with the algo number 7 points above the signal line. Market bulls need higher commodities, GTX above 2306, to prove that they can take stocks higher. Bears need either  lower banks, XLF under 22.84, or lower copper, JJC under 24.52, to guarantee a path lower for equities. If banks or copper turn negative consider the imminent turn in play and if the SPX drops under 2156, the model may flip short (but either banks or copper must turn bearish). The beat goes on. Commodities, financials and copper are dictating broad market direction today.

7/17/16; 7:00 PM EST =

7/15/16; 11:07 AM EST = +82; signal line is +75

7/15/16; 10:00 AM EST = +96; signal line is +75

7/15/16; 9:53 AM EST = +98; signal line is +75

7/14/16; 11:52 AM EST = +84; signal line is +74

7/14/16; 11:31 AM EST = +98; signal line is +74

7/13/16; 10:36 AM EST = +84; signal line is +72

7/12/16; 11:42 AM EST = +98; signal line is +72

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. You see the buoyancy in copper and commodities taking stocks higher. JJC and GTX join the bull camp and the algorithm is at epic and historic levels at +98. The +100 level is the maximum possible! The bullish euphoria is off the charts. Aunt Edna just invested her entire life savings in dividend stocks. There is something special that is going to happen in the markets.

The bulls are running the show with the algo number 26 points above the signal line. Bears will only be able to stop the stock market rally if GTX drops under 2306, JJC under 24.52 and/or XLF under 22.84. Bank earnings are on tap that will directly impact XLF. If one of these parameters turn bearish consider the caution flag out. If two turn bearish and the SPX drops under 2140, Keybot will likely flip short.

It is remarkable to see a +98 print. These are special times. Watch commodities, copper and financials.

7/15/16; 10:00 AM EST =

7/12/16; 11:42 AM EST = +98; signal line is +72

7/12/16; 9:36 AM EST = +84; signal line is +70

7/10/16; 7:00 PM EST = +68; signal line is +68 but algorithm remains long

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

Keybot the Quant is long moving into the new week of trading. Interestingly, on Friday, the rally gathered steam in the afternoon but copper could not catch a bid. As everyone celebrates, copper, a key to the economy, was the only asset flat to lower. This week begins with the algo number and signal line both at +68. How do you like that? The stock market is a toss-up. The model is teetering on a tight rope about to commit to one direction or the other.

The bulls need stronger copper and commodities to continue the upside stock market party. This  means that a weaker US dollar index is needed which will drive commodities, and stocks, higher. Watch copper in overnight trading since as copper goes, so goes the stock market. Bulls need JJC above 24.38, if so, new record stock market highs are guaranteed and the bulls begin the new week where they left off on Friday.

The bears need copper to remain weak and at the same time push the banks lower. Bank earnings are going to hit the tape starting with JPM mid-week. Bears need XLF under 22.77 to prove they have the beans to take stocks lower. If XLF  fails, and the SPX drops under 2107, Keybot will likely flip short, hence the imminent turn notation in the title line.

For the SPX starting at 2130 testing the all-time record highs, the bulls need to touch the 2132 handle and bingo, the upside will accelerate, copper will likely be heading higher and a bull party will begin the new week. The bears need to push under 2107 to accelerate the downside in equities. A move through 2108-2131 is sideways action to begin the week. The bulls have the ball but as the algo and signal line numbers show, both bulls and bears have their hands on the steering wheel as the bus careens down the boulevard.

Watch copper and financials to determine market direction. Bulls win with higher copper while bears win with weaker banks. Keybot prints one pre-scheduled number this week on Friday morning.

7/17/16; 7:00 PM EST =

7/15/16; 10:00 AM EST =

7/10/16; 7:00 PM EST = +68; signal line is +68 but algorithm remains long

7/8/16; 9:36 AM EST = +68; signal line is +67

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The pre-scheduled number prints before the opening bell and one number prints after the bell. Yesterday was active with the algo printing five numbers. Note that the algo number is only one measly point above the signal line. This verifies the continued bull-bear fight and battle is ongoing.

Financials and copper are currently controlling broad market direction. Bulls win big with new record highs on the way if JJC moves above 24.38. Market bears will stop the rally in its track if they push XLF below 22.77. If XLF 22.77 fails, consider the imminent turn in play but Keybot may not flip short until SPX 2089 occurs, if it does. For now, the bulls rule.

7/10/16; 7:00 PM EST =

7/8/16; 9:36 AM EST = +68; signal line is +67

7/8/16; 9:00 AM EST = +52; signal line is +65 but algorithm remains long

7/7/16; 11:26 AM EST = +52; signal line is +63 but algorithm remains long

7/7/16; 10:54 AM EST = +66; signal line is +62

7/7/16; 10:39 AM EST = +82; signal line is +61

7/7/16; 9:56 AM EST = +66; signal line is +59

7/7/16; 9:36 AM EST = +82; signal line is +58

7/6/16; 1:01 PM EST = +66; signal line is +57; go long 2097; (Benchmark SPX for 2016 = +2.6%)(Keybot algo this trade = -0.3%; Keybot algo for 2016 = +7.2%)(Actual results this trade = -0.6%; Actual results for 2016 = +14.1%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side today at SPX 2097 as  the erratic and choppy market action continues. The session began with bear joy but then commodities rallied and volatility dropped creating an upside rally. The bulls need either SOX above 677.90 or XLF above 22.77. The bears need to push VIX above 15.86, or GTX under 2310, or JJC under 24.41. Any one of these three parameters would stop the upside rally.

On the last trade, a 9-hour trade, the algo program loses a smidge and the actual trading loses -0.6%. The benchmark SPX is up +2.6% this year. The Keybot algo is up +7% this year and actual trading is up +14% so far this year. Since a whipsaw occurred, the algo drops into single ETF mode for the next 35 days. Markets are too choppy to play leveraged ETF's. Keybot exits SDS with the loss and enters SPY.

For the SPX on Thursday starting at 2100, the bulls only need one point, to touch the 2101 level, and the upside will accelerate. The bears need to push under 2074 to regain their mojo. If the VIX, GTX or JJC turns bearish, any one of the three would do, and the SPX drops under 2074, Keybot will likely flip short. A move through SPX 2075-2100 is sideways action for Thursday. The bulls have the ball but the algo number is only 9 points above the signal line. A whipsaw move could easily occur back to the bear side. Markets are very unstable.

7/10/16; 7:00 PM EST =

7/8/16; 9:00 AM EST =

7/6/16; 1:01 PM EST = +66; signal line is +57; go long 2097; (Benchmark SPX for 2016 = +2.6%)(Keybot algo this trade = -0.3%; Keybot algo for 2016 = +7.2%)(Actual results this trade = -0.6%; Actual results for 2016 = +14.1%)

7/6/16; 12:09 PM EST = +66; signal line is +56 but algorithm remains short

7/6/16; 11:47 AM EST = +52; signal line is +55

7/6/16; 9:36 AM EST = +38; signal line is +55

7/5/16; 3:46 PM EST = +66; signal line is +55 but algorithm remains short

7/5/16; 9:40 AM EST = +52; signal line is +55; go short 2091; (Benchmark SPX for 2016 = +2.3%)(Keybot algo this trade = +1.9%; Keybot algo for 2016 = +7.5%)(Actual results this trade = +3.7%; Actual results for 2016 = +14.7%)

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

Keybot the Quant flips to the bear side shortly after this morning's opening bell at SPX 2091. The move came on very fast. Financials stayed in the bear camp, then volatility spiked higher and then the semiconductors broke down. Thus, the bears have a turn at bat. The break lower was very clean for once; lately there has been a lot of drama around the turns. As seen by the last print, the algorithm is already champing at the bit to go long again. If the SPX moves above 2095, Keybot will likely flip long.

For Wednesday, the bulls need to push the chips higher, SOX above 678, and/or the banks higher, XLF above 22.77. Either one will tell you that the market bulls have legs and will take stocks higher. The bears need higher volatility, VIX above 15.88, and/or lower commodities, GTX under 2310, to prove that down is the path ahead for stocks. These four parameters currently control broad stock market direction so there are several moving parts. Pay attention to the VIX 15.88 level it will tell  you if the bears got game. If VIX stays under 15.88, the bears will fold like a cheap suit.

For the SPX for Wednesday starting at 2089, the bulls need to move above 2095 and bingo, price will accelerate back above 2100. The bears need to push below 2081 and a flush lower will occur into the low to mid 2070's a critical support area. A move through 2082-2094 is sideways action.

On the last trade, the computer program gains +1.9% and the actual trading nearly +4%. Keybot exits DDM and enters SDS remaining in the 2x ETF's. The benchmark SPX Index is up +2.3% this year. Stay alert for a potential whipsaw back to the long side. Watch  volatility and the chips.

7/10/16; 7:00 PM EST =

7/8/16; 9:00 AM EST =

7/5/16; 3:46 PM EST = +66; signal line is +55 but algorithm remains short

7/5/16; 9:40 AM EST = +52; signal line is +55; go short 2091; (Benchmark SPX for 2016 = +2.3%)(Keybot algo this trade = +1.9%; Keybot algo for 2016 = +7.5%)(Actual results this trade = +3.7%; Actual results for 2016 = +14.7%)

7/5/16; 9:36 AM EST = +68; signal line is +55

7/3/16; 7:00 PM EST = +82; signal line is +56

7/1/16; 12:22 PM EST = +82; signal line is +55

6/30/16; 7:00 PM EST EOM = +98; signal line is +54

6/30/16; 3:58 PM EST = +98; signal line is +52

6/30/16; 3:51 PM EST = +68; signal line is +50

6/30/16; 3:23 PM EST = +82; signal line is +50

6/30/16; 2:16 PM EST = +98; signal line is +49

6/30/16; 10:43 AM EST = +82; signal line is +47

6/29/16; 1:29 PM EST = +68; signal line is +45

6/29/16; 1:11 PM EST = +52; signal line is +44

6/29/16; 12:12 PM EST = +68; signal line is +44

6/29/16; 9:36 AM EST = +52; signal line is +43; go long 2053; (Benchmark SPX for 2016 = +0.4%)(Keybot algo this trade = +0.0%; Keybot algo for 2016 = +5.6%)(Actual results this trade = -0.0%; Actual results for 2016 = +11.0%)

June Publication of Daily Chronology of Global Markets and World Economics 2016-06 Available from Amazon; Brexit Referendum Wins; Record Low Global Bond Yields; "Populism"; Sick Italian Banks

The June publication of the Daily Chronology of Global Markets and World Economics 2016-06 is available through Amazon (AMZN). The epic market action continues. 

The big monthly drama for June is the Brexit referendum win. Britain will proceed with exiting the European Union once Article 50 is invoked. UK Prime Minister Cameron resigns with a target date of October when the Article 50  would be invoked by the new prime minister; that is at least the current plan that will likely twist and change. A 'Populism' movement rises. THE CHRONOLOGY EXPLAINS THE DAY BY DAY DRAMA LEADING INTO THE BREXIT VOTE INCLUDING MP JO COX'S ASSASSINATION AND THE IMPACT ON GLOBAL MARKETS. This documentation does not exist anywhere else on the internet.

The Brexit outcome created a big flush downward in markets but the BOE came in to save the day. Central bankers such as the BOE, Fed, ECB, BOJ and PBOC keep pumping stocks higher. The chronology explains how the central bankers are the market. Global yields print new record lows led to the negative side by Switzerland, Japan and Germany. The US Monthly Jobs Report was a paltry 38K jobs but that news was overshadowed as the Brexit drama played out.

The Italian banks are very sick and officials meet through the holiday weekend to develop plans for saving the banks. Portuguese and Spanish banks are also sick. The European banks may create global contagion.

The chronology describes the reactions to economic data such as the Monthly Jobs Reports in real-time. There is no other document available on the world wide web that records the action in real-time with common sense easy-to-understand detail. Inflation, that the Federal Reserve has tried to create for seven years with their obscene Keynesian programs, cannot exist without wage inflation occurring so each jobs report is very important.

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 in May 2015 placing anyone that listened to television pundits over the last couple years either flat or underwater on their long trades.

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 has printed, 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 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.

Download this valuable resource today. Remember to support the KE Stone Series of blogs (Keystone the Scribe, The Keystone Speculator and Keybot the Quant) through donations, the daily chronology book sales and honoring advertisers that support the original free content provided in the blogs. The blog proceeds aid charities.

The free blog content is posted in proportion to the advertising, book and donation income received. Thus, you folks working at the large money-center banks around the world need to open your wallets if you want this unique trading and economic information, that is not available elsewhere, to continue. Let some moths out of those wallets.

The KE Stone Series of blogs are viewed by 100's of thousands of people around the globe each month including money managers, investors, students, traders, historians, economists, teachers, current event enthusiasts, hedge fund managers, political junkies and folks that truly want to understand how the world's economic systems and markets function. All readers should support the blogs to expand the information provided.

STOCK MARKET BULLISH -- LONG

Keybot the Quant is long moving into the new week of trading which does not begin until Tuesday morning in the States. The +98 readings cannot be understated. The  markets are at strongly overbot levels perhaps epic levels. Time will tell. The bulls need XLF above 22.77 and bingo, the upside in the stock market will continue exploding higher. The bears need to keep XLF under 22.77 with all their might, if so, the move higher in stocks will stall and end.

If the market bears can stop the upside in stocks with lower financials, they can gain downside momentum in the stock market if the VIX moves above 16.15. If the VIX remains below 16.15, the bears got nothing; the bulls will swat the bears around like a cat slapping around an unfortunate mouse.

For the SPX on Tuesday, starting at 2103, the bulls need to touch the 2109 handle and the upside will accelerate as the banks rally higher. The bears need to push below 2098 to accelerate the downside. A move through 2099-2108 is sideways action for Tuesday.

Keybot prints one pre-scheduled number this week on Friday morning before the bell. The bulls are in charge. The algorithm is at very lofty levels indicating that something special may be occurring in markets currently. Watch XLF 22.77. As financials go, so go the markets.

7/10/16; 7:00 PM EST =

7/8/16; 9:00 AM EST =

7/3/16; 7:00 PM EST = +82; signal line is +56

7/1/16; 12:22 PM EST = +82; signal line is +55

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long through the holiday weekend. US stocks do not trade again until Tuesday morning. On Thursday, you saw XLF catapult higher with the happy bank stress test results and volatility drops like a rock, the VIX sporting a 14-handle, so  you knew the market bulls were in full control.

The algorithm prints an eye-opening +98. Wow. Keybot the Quant has never printed that high a number in its eight year's existence. Keybot is an oscillator. That is a fancy word that simply means a line that fluctuates above and below a centerline. Think of the RSI, MACD and stochastics chart indicators as examples of oscillators. For the Keybot algo, zero is a neutral stance while negative numbers favor the bears and positive numbers favor the bulls. The maximum number possible for the algorithm is +100 and minimum is -100. Therefore the +98's that printed over the last couple days are only 2 tiny points from the maximum possible reading. The +80 level and higher can be thought of as overbot conditions while a -80 and lower number is oversold conditions. The Keybot model is jammed all the way into the +100 ceiling and it is a mystery as to what else can send the stock market higher.

The banks are the number one influence on broad market direction currently. Watch XLF 22.77 as a key bull-bear line in the sand (now printing 22.74). Since the bears are only favored by three measly points, the pivot from this level dictates market direction on Tuesday. Market bulls win big above 22.77 while bears win big below XLF 22.77.

The Sunday pre-scheduled number prints tomorrow where the holiday-shortened week ahead can be assessed. The +98 prints are astonishing. Something special is happening in markets. Bears can growl only if they push the banks lower and volatility higher.

7/3/16; 7:00 PM EST =

7/1/16; 12:22 PM EST = +82; signal line is +55

6/30/16; 7:00 PM EST EOM = +98; signal line is +54

6/30/16; 3:58 PM EST = +98; signal line is +52

6/30/16; 3:51 PM EST = +68; signal line is +50

6/30/16; 3:23 PM EST = +82; signal line is +50

6/30/16; 2:16 PM EST = +98; signal line is +49

6/30/16; 10:43 AM EST = +82; signal line is +47