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

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Yesterday, you saw utilities jumping higher, commodities remaining elevated and volatility dropping so you knew the bears did not have a lot of oomph despite the stock market selling off. Today, commodities collapse, GTX  falls through the important 2249 level, however, utilities leap higher and UTIL moves above the important 654.40 level. Minutes ago, UTIL falls back down through. The pre-scheduled number also prints so the algo is active on Tuesday morning printing four numbers so far. One number printed yesterday.

Bulls need UTIL back above 654.40 and GTX above 2249 to prove they can take stocks higher. Bears need to keep UTIL under 654.40 and GTX under 2249 while pushing volatility higher. Bears need VIX above 13.85 or they got nothing. As this is typed, UTIL creeps higher again towards 654, VIX is at 13.18 and GTX is at 2212; status quo. UTIL 654.40 is a rudder that is steering the broad stock market's direction. Bulls remain in control but higher volatility will be a game changer thus the caution note is added in the title line.

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

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

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. The Trump Rally has created parabolic moves in the major indexes. Market bulls need higher commodities and utilities to keep the party going. Bears need  higher volatility.

Watch GTX 2249. Price collapsed down through on Friday and it was surprising to see the up day in stocks. The 'day after Thanksgiving' positive seasonality, where that day is the most up day of the entire year, won out instead. GTX is at 2234 so the expectation would be for stocks to soften. Bulls need to push GTX above 2249 to prove that stocks will continue higher, if not, equities will likely become soggy. Bulls can also achieve more upside juice for the stock market if UTIL moves above 653; this would be a big deal. If UTIL stays below 653, it remains an ominous indicator for the intermediate term ahead.

The market bears need higher volatility. The low VIX slaps the bears around each day. Slap, slap. The stock market will weaken and sell off if VIX moves above 13.85. Overall, the bulls remain in good shape. Even if VIX fails, the algo will likely remain long. Watch for any joggy price action at the GTX 2249 and VIX 13.85 levels. If price moves across these key levels, then back to the other side, then back again, etc.... This behavior would hint that the algorithm is sensing a move to the short side on the come.

For Monday with the SPX starting at 2213, the highest level in all-time history, the bulls need any smidge of green in the overnight S&P futures and price will jump several handles after the opening bell towards 2220 printing more record highs. The bears need to push under 2206 to quickly accelerate the downside to a test of the psychological 2200 level. A move through 2207-2212 is sideways action to begin the week. This is a tight 5-point range so instead price will likely seek to exit one side or the other.

Keybot prints three pre-scheduled numbers this week one each on Tuesday, Wednesday and Friday. The EOM (end-of-month) is Wednesday. The bulls remain in control.

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; 10:00 AM EST =

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

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The shortened Friday trading session is set to begin in about three hours. The bulls are cruising with the algo number 33 points above the signal line. The market bulls need higher utility stocks (UTIL above 653) to keep the upside rally going. The bears need higher volatility (VIX above 13.85) and lower commodities (GTX under 2249) to send stocks lower.

Note how GTX came down to test the 2250-ish level called out by the algorithm on both Tuesday and Wednesday but it would not fail. The bulls slapped the bears. Slap, slap. If volatility or commodities turn bearish, you will know the upside equity rally is over. If both turn bearish, the bears will begin growling strongly with stocks falling in earnest. If stocks pull back due to one of the two parameters turning bearish, but then the parameter recovers back to the bull side, then stocks would resume the uptrend.

For the SPX starting Friday at 2205, the bulls need any smidge of positivity in the S&P futures and price will accelerate several handles higher after the opening bell to new all-time highs. S&P futures are +3 as this message is typed. The bears need to push the SPX below 2195 to regain their mojo. A move through 2196-2204 is sideways action.

Today (day after Thanksgiving) is an extremely bullish day for stocks over the last few decades so it will be interesting to see if the Trump Rally can continue with the help of the positive seasonality, or not. Stocks have rallied since 11/7/16; a day before the US presidential election. The stock market closes at 1 PM EST (6 PM London) and full trading sessions begin again on Monday.

11/27/16; 7:00 PM EST =

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

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

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long printing one number thus far this week. The bulls are firmly in charge with the algo number 32 points above the signal line. The SPX (S&P 500) moves above 2200 and the INDU and DJI (Dow Jones Industrials) move above 19K for the first time in history. Retail stocks move higher, volatility moves lower, and commodities, GTX, launch higher providing three slaps to the bear's faces. GTX moves above 2249 creating upside fuel for the broad market.

Bulls need higher utilities (UTIL above 652) to keep floating stocks higher. Bears need GTX under 2248.60 and/or VIX above 13.85 to prove they got the beans to take the stock market lower. Stocks will float along sideways to sideways higher if VIX remains below 13.85 and GTX above 2249. VIX is currently printing at 12.72 and GTX is at 2255 at 12:45 PM EST, Tuesday, 11/22/16. The bulls will coast along without a care in the world unless volatility rises or commodities drop.

11/27/16; 7:00 PM EST =

11/23/16; 10:00 AM EST =

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

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

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The algo did not print any numbers on Friday. The bulls win with lower volatility and higher retail stocks. Bears need VIX above 13.88 and/or RTH under 76.60 to create downside in stocks. Bulls need stronger commodities and utilities to create further upside; watch GTX 2250 and UTIL 651.

The bulls are in control with the S&P 500 knocking on the door of new all-time record highs. For the SPX starting at 2182 on Monday, the bulls need to touch the 2190 handle and bingo, trumpets will sound as the S&P 500 rockets to new highs accelerating towards 2200 like a madman. The bears need to push below 2180 to accelerate the downside quickly into the 2170's. A move through 2181-2189 is sideways action to begin the week.

Keybot prints one pre-scheduled number this week on Wednesday. The market bears need VIX above 13.88 or they got nothing. Stocks will float higher if VIX maintains a 12-handle.

11/27/16; 7:00 PM EST =

11/23/16; 10:00 AM EST =

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

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

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the Trump Rally continues. Volatility drops, retail stocks pop, and the bulls celebrate with higher stocks. The algo number is 21 points above the signal line. The market bears need the VIX above 13.89 or they got nothing. If volatility moves higher, that would warrant caution, and if the RTH moves below 76.6 that would put the imminent turn in play and if these two parameters turn bearish and the SPX drops under 2177, Keybot will likely flip short.

More retail earnings are on tap Friday morning which will influence RTH. The VIX begins trading at 3 AM EST and will provide insight on market direction ahead. Bulls need higher commodities and utilities to create more upside in equities. Watch GTX 2250 and UTIL 651.

The SPX is on the verge of new all-time record highs only 3 points away. The SPX begins Friday at 2187 and bulls only need one point higher to 2188 and the upside will accelerate printing the new all-time highs. The bears need to push under 2177 to regain their rmojo. A move through 2178-2187 is sideways action to end the week.

11/20/16; 7:00 PM EST =

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

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. You saw volatility drop and retail stocks pop as per the previous levels listed so you knew the bulls would win the day yesterday. The bulls are in charge with the algo number comfortably above the signal line by 25 points.

The bulls need GTX above 2250 and/or UTIL above 651 to create more stock market upside. Both of these tasks currently appear difficult but the Trump Rally keeps pumping stocks higher. The bears need the VIX to move above 13.89 (currently trading at 13.68) and/or RTH under 76.53 (now at 76.69). Either parameter will create market weakness. If both volatility and retail stocks turn bearish, and the SPX drops under 2166, Keybot may flip short.

The SPX begins Wednesday at 2180. The bulls need to touch the 2181 handle, only one point higher, and bingo, the upside will accelerate several quick handles. The bears need to push below 2166 to regain their mojo. S&P futures are down 2 points four hours before Wednesday's opening bell for the regular session. A move through 2167-2180 is sideways action for the SPX on Wednesday.

11/20/16; 7:00 PM EST =

11/17/16; 9:00 AM EST =

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

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

Keybot the Quant remains long but wants to flip short. If the SPX falls under 2156, Keybot will likely flip short. If RTH moves above 76.55 and/or VIX under 13.89, the bulls will keep pushing stocks higher. Retail Sales were just released and are a beat so RTH will be moving higher after the opening bell. If stocks rally but the RTH and VIX remain in the bear camp, equities will likely roll back over to the downside.

For the SPX starting at 2164, the bulls need to push above 2171, about 7 or 8 points higher, and the upside will accelerate. S&P futures are up about 6 points as this is typed about 50 minutes before the opening bell. The bears need to push under 2156 and the downside will accelerate. A move through 2157-2170 is sideways action for Tuesday.

Bears win with SPX under 2156. Bulls win with RTH above 76.55 or VIX below 13.89.

The algo number and signal line are both at +18 indicating that a knock-down drag-out bull-bear fight for control of market direction is occurring. Volatility and retail stocks are key currently.

11/20/16; 7:00 PM EST =

11/17/16; 9:00 AM EST =

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

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the new week of trading. Today's weekly Sunday number flips the algo number one point above the signal line so the bulls are happy. On Friday, you saw semiconductors, SOX, gap-up at the opening bell so you knew the bears did not have a lot of juice. Despite that, the SPX did drop to test the 2151-2152 called out by the robot ahead of time, and bounced. The bears did not have enough downside strength so the bulls rule.

Volatility and retail stocks are key. Market bulls need either VIX below 13.91 and/or RTH above 76.62. If either occurs, the bulls are in clover. There are many retail stocks reporting earnings this week that will create drama.

Volatility will tell you the market direction story tomorrow morning. VIX begins at 14.17 very close to the 13.91 bull-bear line in the sand. VIX begins trading 3 AM EST so in the early morning hours a hint will be provided as to the path forward. VIX in the 14-15 area is status quo and stocks stagger choppy sideways. Under 13.91 and the bulls rejoice as the stock market rockets higher. Bears need VIX above, 15, 16 and higher to create market angst.

For the SPX starting at 2164, the bulls need two points to push above 2166 and an upside acceleration will occur. Bears need to push under 2152 to regain their mojo. A move through 2153-2165 is sideways action to begin the week.

Keybot prints one pre-scheduled number this week on Thursday morning. The bulls remain in charge but the one-point difference in the algo number and signal line signal a toss-up concerning the path ahead as the bulls and bears are in an intense struggle for control here forward.

Bears need higher volatility and weak retail earnings. Bulls need VIX under 13.91 and the upside party continues.

11/20/16; 7:00 PM EST =

11/17/16; 9:00 AM EST =

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

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

Keybot the Quant remains long as the bulls and bears battle. The algo wants to flip short but interestingly the algo number is only one point below the signal line. This illustrates the bulls and bears fighting for control of the stock market. If the SPX drops under 2151 (starting the Friday trade at 2167), Keybot will likely flip short.

Keybot is tracking semiconductors, retail stocks and volatility as the three main drivers of market direction currently. Utilities collapsed yesterday and remain in the bear camp.

If SOX falls below 804.90 (now at 806.09), the stock market will  take a leg lower. If RTH moves above 76.62 (now at 76.08) and/or VIX moves below 13.93 (now at 14.74), the bulls will throw confetti as the stock market rally continues higher into the weekend. If chips remain bullish, retail bearish and volatility higher (bearish), status quo, stocks will move choppy sideways with a slight upward bias into the weekend.

Bears need the SPX under 2151 and the SOX under 804.90 to be victorious going forward. Bulls need RTH above 76.62 and VIX under 13.93 to continue the upside rally. Keybot prints a pre-scheduled number one-half hour after the opening bell.

11/13/16; 7:00 PM EST =

11/11/16; 10:00 AM EST =

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

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

Keybot the Quant remains long as the wild market ride continues. The Dow prints a new all-time record high but then stocks become soggy. VIX is above 13.93 so bears are happy. UTIL collapses to 623 so bears are happy. UTIL under 650 is ominous for the stock market for the weeks and months ahead.

The algo is now tracking retail stocks as a top influencer on market direction currently. Watch RTH 76.62 as a bull-bear line in the sand. If RTH moves above 76.62, stocks will rally strongly higher. If volatility remains elevated, and utes and retail remain in the bear camp, stocks should leak lower.

Keybot is champing at the bit to go short with the algo number 4 points under the signal line but all the internal program parameters are not yet latched to allow the move. If SPX falls under 2125, Keybot will likely flip short; this level remains about 30 handles below current levels. If the day ends with no resolution, and Keybot still wants to go short, today's low print in the SPX will be key tomorrow. Today's LOD thus far is 2151 (if status quo remains today, Keybot may want to flip short tomorrow at SPX 2151).

11/13/16; 7:00 PM EST =

11/11/16; 10:00 AM EST =

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

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

Keybot the Quant remains on the long side all this week but is champing at the bit to go short with the algo number 6 points below the signal line. The internal parameters are not completely latching as yet to permit the move. As a general guideline, if the SPX drops under 2125 today, Keybot will likely flip short.

It has been a crazy week with Donald Trump elected as the next POTUS. Markets are going through a violent repricing. The UTIL 650 level, a trap-door for the stock market, opened yesterday and this requires close watching. Market bulls are fine and the rally can be sustained if UTIL moves above 650 and stays above 650. If UTIL remains below 650 (now at 647), the stock market will trend lower for the weeks and months ahead.

Watch VIX 13.93 which is a bull-bear line in the sand. If VIX drops below 13.93 (now at 14.03), the stock market rally is real and equities will continue a joyous path higher. If the VIX does not move below 13.93, the stock market will likely roll over to the downside.

Thus, the market bears need to push the SPX under 2125 which will likely flip the algorithm short. The market bulls need to push UTIL above 650 and/or VIX under 13.93 to create further upside joy. If UTIL remains below 650, and VIX above 13.93, stocks will begin rolling over to the downside. The beat goes on.

On the previous short trade, the direction was correct with the computer program gaining a smidge +0.3% but the actual trading lost -1%. The 2x ETF's are known for quirky behavior and sometimes you do not end up with a gain even when the direction is correct. Keybot exited SDS and entered IWM. The algo is up +17% on the year with 7 trading weeks remaining in 2016.

When Trump started rising in the election results Tuesday evening, the S&P futures were down over 100 handles which would have been an ugly loss for Keybot, however, after Trump won the electoral college count at about 1 AM EST yesterday and became president-elect, and gave a gracious acceptance speech, futures rallied and never looked back. By the time the regular session opened yesterday the SPX was flat, and then rallied as the day played out.

Bears win with SPX under 2125. Bulls win with UTIL above 650 or VIX below 13.93 and receive double rally fuel if both turn bullish. If status quo remains, stocks move choppy sideways with a slight upward bias.

11/13/16; 7:00 PM EST =

11/11/16; 10:00 AM EST =

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%)

11/6/16; 7:00 PM EST = +3; signal line is +27

11/4/16; 3:30 PM EST = +3; signal line is +30

11/4/16; 3:21 PM EST = +19; signal line is +31

11/4/16; 3:09 PM EST = +3; signal line is +32

11/4/16; 12:02 PM EST = +19; signal line is +33

11/4/16; 11:46 AM EST = +19; signal line is +35

11/4/16; 11:17 AM EST = +19; signal line is +36

11/4/16; 10:22 AM EST = +3; signal line is +37

11/4/16; 10:00 AM EST = -13; signal line is +39

11/4/16; 9:36 AM EST = +3; signal line is +40

11/4/16; 9:00 AM EST = +19; signal line is +42

11/2/16; 10:36 AM EST = +19; signal line is +43

11/1/16; 2:32 PM EST = +33; signal line is +43

11/1/16; 2:20 PM EST = +19; signal line is +43

11/1/16; 10:14 AM EST = +33; signal line is +43; go short 2123; (Benchmark SPX for 2016 = +3.9%)(Keybot algo this trade = -1.0%; Keybot algo for 2016 = +11.4%)(Actual results this trade = -2.0%; Actual results for 2016 = +18.0%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the new week of trading. Bears need weaker banks and a weaker S&P 500 Index while the bulls need stronger semiconductors and NYA Index.

Bears need XLF under 19.46 and/or SPX under 2080 to cause market mayhem. Stocks will drop in earnest if either parameter fails. The SPX 2080 is extremely critical and can be considered a cliff edge for the stock market. Very bad things will happen to stocks if SPX 2080 fails.

Bulls need SOX above 805.20 and/or NYA above 10378. Either one would immediately stop the stock market selling and stabilize equity markets. If both parameters turn bullish, Keybot will be on its way to flipping to the long side. These four parameters will provide guidance for market direction all week long.

Also pay attention to UTIL 648.30 which is a trap-door for the stock market. If XLF loses 19.46, SPX loses 2080, and UTIL loses 648.30, the stock market can potentially crash.

Bulls need either stronger chips or a stronger NYSE Composite Index from the opening bell tomorrow morning to begin the week and stop the selling. You will immediately know the market direction forward by focusing on XLF 19.46 and SPX 2080 after the opening bell. Keybot prints one pre-scheduled number on Friday morning this week.

Anything can happen in markets this week since the new POTUS will be known Tuesday evening or early Wednesday morning. The stock market will react on Wednesday at 9:30 AM EST. S&P futures will react overnight Tuesday into Wednesday. The algo number is 24 points below the signal line placing the bears firmly in charge but caution is warranted due to the presidential election.

11/13/16; 7:00 PM EST =

11/11/16; 10:00 AM EST =

11/6/16; 7:00 PM EST = +3; signal line is +27

11/4/16; 3:30 PM EST = +3; signal line is +30

11/4/16; 3:21 PM EST = +19; signal line is +31

11/4/16; 3:09 PM EST = +3; signal line is +32

11/4/16; 12:02 PM EST = +19; signal line is +33

11/4/16; 11:46 AM EST = +19; signal line is +35

11/4/16; 11:17 AM EST = +19; signal line is +36

11/4/16; 10:22 AM EST = +3; signal line is +37

October Publication of the Daily Chronology of Global Markets and World Economics 2016-10 is Available from Amazon; NDX Record High; FB, GOOGL, MSFT, AMZN Record Highs; WFC Scandal; DB Trouble; FBI Reopens Clinton Email Investigation; Clinton and Trump POTUS Race Turns Dirty; Hurricane Mathew; Debates; ECB Taper Tantrum; Record M&A; Wikileaks

The October publication of theDaily Chronology of Global Markets and World Economics 2016-10 is available through Amazon (AMZN). The epic market action continues.

October's Cover Highlights;

NDX (Nasdaq 100) RECORD HIGH 4905

FB, GOOGL, MSFT, AMZN RECORD HIGHS

WFC (Wells Fargo) SCANDAL

DB (Deutsche Bank) TROUBLE

FBI REOPENS CLINTON EMAIL INVESTIGATION

CLINTON AND TRUMP POTUS RACE TURNS DIRTY

HURRICANE MATTHEW

DEBATES

ECB TAPER TANTRUM

RECORD M&A

WIKILEAKS

The Nasdaq 100 Index, NDX, that holds the large high-tech stocks, prints a new all-time record high but the other indexes do not. Facebook, Alphabet, Microsoft and Amazon each print new record highs which supports the main stock indexes. The scandal and problems at Wells Fargo, WFC, continue. Deutsche Bank, DB, and the Italian, Spanish and Portuguese banks remain sick.

The US political race continues with the election on Tuesday, 11/8/16, now only hours away. Stocks rally and the peso strengthens (Mexican peso currency pair moves lower) when Clinton is leading the polls while stocks drop and the peso weakens (Mexican peso pair moves higher) when Trump surges in the polls. Americans will be unhappy no matter who wins but the country is unified in one thought--that the election cannot occur fast enough!

The October chronology explains the bombshell news in real-time when the FBI reopens the investigation into Clinton’s emails on Friday, 10/28/16, at 1 PM EST. Wall Street prefers Clinton as the next POTUS since she is in the back pocket of the investment banks. Clinton was paid lucrative fees for showing up at token luncheons hosted by Wall Street bigwigs. Clinton edged out Trump in the debates. The Wikileaks documents are hurting Clinton.

The central bankers continue to control the global stock markets. ECB President Draghi mentioned the word ‘taper’ for the ongoing easy money program which created a tantrum. The pound and FTSE Index are responding to drama with the Brexit (Britain exiting the European Union) process. OPEC continues to play games manipulating the oil market. Merger and acquisition (M&A) activity is at record levels.

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 the indexes printing record highs in August and September and the NDX in early October rewarding those that blindly remain long with full confidence in the Federal Reserve’s Keynesian schemes.

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STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish as the Friday session is underway. The bears remain in charge with the algo number 34 points below the signal line.

Watch banks and semi's. If XLF loses the 19.47 level, the stock market will fall down the rabbit hole. If SOX moves  above 805.20, the bulls will celebrate since a relief rally will be developing. XLF is at 19.55 creating market positivity while the SOX is at 804.05 creating market negativity. If the two parameters are status quo, stocks will stagger choppy sideways.

11/6/16; 7:00 PM EST =

11/4/16; 10:22 AM EST = +3; signal line is +37

11/4/16; 10:00 AM EST = -13; signal line is +39

11/4/16; 9:36 AM EST = +3; signal line is +40

11/4/16; 9:00 AM EST = +19; signal line is +42

11/2/16; 10:36 AM EST = +19; signal line is +43

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side but the stock market remains sideways choppy. Banks are key. The algo is tracking XLF 19.47 now at 19.55 creating market positivity. Stocks will take a strong leg lower if 19.47 fails. Yesterday, during the afternoon selloff, XLF came down and kissed the sub-19.47 level but immediately recovered so the bulls are not going down without a fight and they held the line at the first test of this support.

A critical failure occurs with the NYA losing the 40-week MA at 10378. NYA is at 10334 creating market negativity. Bulls need to push NYA above 10378  or they are toast. The NYA 40-week MA failure is serious since it ushers in a cyclical bear market for stocks.

For bulls to recover and send stocks higher, they must keep XLF above 19.47 and heading higher. At the same time they need to boost commodities, GTX, above 2273 and NYA above 10378 to prove they have the beans to take stocks higher. The bears need the XLF 19.47 failure and stocks will drop like a stone. Status quo maintains a choppy sideways path for stocks.

Keybot flipped short on Tuesday at SPX 2123. The last trade lost -1% with the algorithm program and -2% with the actual trading.  The algo has generated +18% in returns this year thus far. The algo exited SSO and entered SDS for the short side. The banks, XLF 19.47, and NYA Index, NYA 10378, tell the market directional tale; watch them like a hawk. 

11/6/16; 7:00 PM EST =

11/4/16; 9:00 AM EST =

11/2/16; 10:36 AM EST = +19; signal line is +43

11/1/16; 2:32 PM EST = +33; signal line is +43

11/1/16; 2:20 PM EST = +19; signal line is +43

11/1/16; 10:14 AM EST = +33; signal line is +43; go short 2123; (Benchmark SPX for 2016 = +3.9%)(Keybot algo this trade = -1.0%; Keybot algo for 2016 = +11.4%)(Actual results this trade = -2.0%; Actual results for 2016 = +18.0%)

10/31/16; 7:00 PM EST EOM = +33; signal line is +43 but algorithm remains long

10/31/16; 10:34 AM EST = +33; signal line is +43 but algorithm remains long

10/30/16; 7:00 PM EST = +47; signal line is +43

10/28/16; 10:00 AM EST = +47; signal line is +42

10/27/16; 10:09 AM EST = +48; signal line is +42

10/27/16; 9:36 AM EST = +62; signal line is +41

10/26/16; 3:59 PM EST = +46; signal line is +39

10/26/16; 3:57 PM EST = +32; signal line is +38 but algorithm remains long

10/26/16; 3:26 PM EST = +46; signal line is +38

10/26/16; 3:06 PM EST = +32; signal line is +38 but algorithm remains long

10/26/16; 1:11 PM EST = +48; signal line is +38

10/26/16; 12:06 PM EST = +62; signal line is +38

10/26/16; 11:37 AM EST = +46; signal line is +37

10/26/16; 11:12 AM EST = +62; signal line is +37

10/26/16; 10:36 AM EST = +46; signal line is +37

10/26/16; 10:24 AM EST = +32; signal line is +38 but algorithm remains long

10/26/16; 9:59 AM EST = +46; signal line is +38

10/26/16; 9:47 AM EST = +62; signal line is +39

10/25/16; 10:00 AM EST = +46; signal line is +39

10/23/16; 7:00 PM EST = +47; signal line is +39

10/20/16; 12:02 PM EST = +47; signal line is +39

10/20/16; 10:41 AM EST = +33; signal line is +39 but algorithm remains long

10/19/16; 10:44 AM EST = +47; signal line is +40; go long 2144; (Benchmark SPX for 2016 = +4.9%)(Keybot algo this trade = +0.5%; Keybot algo for 2016 = +12.4%)(Actual results this trade = +0.8%; Actual results for 2016 = +20.0%)