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%)