STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the bears continue biting off chunks of bull flesh. The algo did not print any numbers at the tail end of last week except for the pre-scheduled number on Friday. The algorithm number is 30 points below the signal line so the bears are cruising along slapping the bulls around like rag dolls.

Bears need weaker utilities to increase the market mayhem. UTIL begins the week at 730. If 718.20 fails, the stock market is in serious trouble and a sharp deterioration will be occurring. If 709.44 is lost, the stock market will likely go into free fall and a crash scenario is on the table.

Bulls need stronger commodities and copper and for the SPX price to recover. Bulls need GTX above 2767 and CPER above 17.40. GTX ran higher to the 2765-2767 resistance on Friday but then balked at poking above. It is amazing that the Keybot algorithm can identify these levels before they occur.

As long as the SPX remains below 2740, the stock market is in deep trouble and in a cyclical bear market pattern. If the stock market rallies, the upside will not continue unless the SPX can move above 2740. Keybot prints three pre-scheduled numbers this week; one on Tuesday, the second on Wednesday and the third on Friday. Wednesday is the last day of October, EOM, and Halloween. Will the new week of trading be a trick or a treat? Utilities, commodities and copper will tell you the answer.

11/2/18; 9:00 AM EST =

10/31/18; 7:00 PM EST EOM =

10/30/18; 10:00 AM EST =

10/28/18; 7:00 PM EST = -20; signal line is +10

10/26/18; 10:00 AM EST = -20; signal line is +11

10/23/18; 3:52 PM EST = -20; signal line is +12

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The algo number is 32 points below the signal line so the bears are cruising along without a care or worry. Tuesday was the big day thus far this week with the algo verifying the ongoing bearish direction. Keybot does not print any numbers Wednesday or today (Thursday).

Stocks are sloshing around in a bloodbath. Copper, commodities and the key SPX 2742 level all failed creating the market carnage. The stock market is in shambles.

SPX 2742 is the key level the bulls need to prove they can build a sustainable rally. Bears rule the stock market for the weeks and months ahead if the SPX remains below 2742.

Bulls also need either CPER above 17.41 and/or GTX above 2766. These parameters indicate that a recovery rally is sustainable, or not.

If copper and commodities remain bearish, and the SPX remains below 2742, status quo, the stock market is toast. Keybot prints a pre-scheduled number tomorrow morning. The beat goes on.

10/28/18; 7:00 PM EST =

10/26/18; 10:00 AM EST =

10/23/18; 3:52 PM EST = -20; signal line is +12

10/23/18; 3:39 PM EST = -6; signal line is +14

10/23/18; 10:01 AM EST = -20; signal line is +15

10/23/18; 9:36 AM EST = -6; signal line is +17

10/21/18; 7:00 PM EST = +24; signal line is +19 but algorithm remains short

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

Keybot the Quant remains short but continues champing at the bit to go long. The algo did not print any numbers in the Monday session. For Tuesday, Keybot will likely flip long if the SPX moves above 2779. Price will begin the day at 2756. 

The bears need either CPER to drop below 17.40, GTX below 2770 and/or SPX 2747. Any one of these three failing into bear territory will create a strong leg lower in the stock market. The sub 2747 is the Armageddon outcome. Price came down to 2749 today and bounced. If all three parameters remain bullish, the stock market will likely rally higher.

So the bulls need SPX 2779 and it will be one big upside party while the bears need SPX 2747 or weaker copper and commodities.

10/26/18; 10:00 AM EST =

10/21/18; 7:00 PM EST = +24; signal line is +19 but algorithm remains short

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

Keybot the Quant remains short but is champing at the bit to go long starting Friday afternoon. The algo number is 5 points above the signal line in the bull camp. Strength in copper creates bullish lift in equities. However, the internal parameters are not fully latched to permit the move to the bull side. Monday is important.

If the SPX moves above 2797, it is likely that Keybot will flip long. The bears need weaker copper and commodities CPER under 17.40 and GTX 2767, respectively, to create downside strength.

The SPX begins the week at 2768 and the 2747 level remains as critical long-term support. An Armageddon scenario plays out for stocks if the 2747 is lost.

Keybot prints a pre-scheduled number this week on Friday morning.

10/28/18; 7:00 PM EST =

10/26/18; 10:00 AM EST =

10/21/18; 7:00 PM EST = +24; signal line is +19 but algorithm remains short

10/19/18; 2:32 PM EST = +24; signal line is +20 but algorithm remains short

10/17/18; 11:20 AM EST = +8; signal line is +21

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

Keybot the Quant remains short as the stock market continues to chop sideways from the high volatility. Bulls will benefit from stronger copper. If CPER moves above 17.40, and the SPX above 2813, Keybot will likely flip long.

Bears need weaker commodities and utilities and will benefit from GTX below 2765 and UTIL under 729.37, respectively. One of the three parameters should flinch going forward which will confirm the stock market direction ahead. The bears remain in charge with the algo number 13 points below the signal line. Watch copper, commodities and utilities.

10/21/18; 7:00 PM EST =

10/17/18; 11:20 AM EST = +8; signal line is +21

10/17/18; 9:00 AM EST = +24; signal line is +23 but algorithm remains short
10/16/18; 10:13 AM EST = +24; signal line is +25

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

Keybot the Quant remains short as the bulls create a strong upside thrust. Utilities run higher creating bull fuel. Copper remains elevated and retail stocks catch a bid. The algo number is only 1 point from the signal line, in bear territory, so it is near where it will want to flip long but it did not flip long for the big rally today. Keybot only sees 1's and 0's and is not ready to flip long as yet.

The bears need weaker utilities and copper to prove they can jam stocks lower again. Bears need UTIL under 729.37 and/or CPER under 17.40.

The bulls need stronger retail stocks; this will paint the way higher. Bulls need RTH above 107.81 and the equity rally will develop strong legs higher.

Keybot prints a pre-scheduled number tomorrow morning. The bulls and bears are battling. If RTH moves above 107.81, and the SPX moves above 2813, Keybot will likely flip long.

10/17/18; 9:00 AM EST =

10/16/18; 10:13 AM EST = +24; signal line is +25

10/15/18; 3:08 PM EST = +8; signal line is +26

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. Utilities oscillate above and below the UTIL 729.37 bull-bear line in the sand. The bulls are jogging the utes to move the algo closer to flipping long. The algo number is 18 points below the signal line but was only 3 points below on the prior print.

Bulls need UTIL above 729.37 to create lift in the stock market. A continued move above and below this level, then resolving above, likely indicates that the relief rally for equities is underway.

Bears need utilities to sell off as well as copper and commodities. The SPX 2747 bull-bear line in the sand is uber importante. This represents the point of no return for the stock market and the SPX begins the day only 3 points above at 2750. If SPX 2747 fails and price remains below and trends lower, the stock market will be weak for weeks, months and perhaps years ahead. Keybot prints a pre-scheduled number tomorrow morning.

UTIL 729.37 (for happy bulls) or SPX 2747 (for ecstatic bears) will tell the market story on Tuesday. S&P futures are up +9 three hours before the opening bell.

10/21/18; 7:00 PM EST =

10/17/18; 9:00 AM EST =

10/15/18; 3:08 PM EST = +8; signal line is +26

10/15/18; 2:27 PM EST = +24; signal line is +27

10/15/18; 11:10 AM EST = +8; signal line is +28

10/15/18; 10:58 AM EST = +24; signal line is +29

10/15/18; 9:36 AM EST = +8; signal line is +29

10/14/18; 7:00 PM EST = +24; signal line is +30

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The wild choppy whipsaw market action will likely continue due to the elevated volatility. The bears are in control with the algo number 6 points below the signal line to begin the new week of trading.

The bears need UTIL under 729.37. This number is key for the entire week ahead. UTIL closed at 724 on Friday so at the opening bell the bears are going to receive downside juice from the weaker utilities. IF UTIL pops above 729.37, the stock market will build on a relief rally higher.

Bears will also create more carnage if CPER drops under 17.36 and/or the SPX below 2747. The SPX 2747 is a major stock market level where a crash scenario will be on the table if it fails.

The bulls must push UTIL above 729.37, NYA above 12806 and/or XLF above 27.83 to keep creating buoyancy and a potential rally with stocks. Keybot prints one pre-scheduled number this week on Wednesday morning.

10/21/18; 7:00 PM EST =

10/17/18; 9:00 AM EST =

10/14/18; 7:00 PM EST = +24; signal line is +30

10/12/18; 3:01 PM EST = +24; signal line is +31

SPX S&P 500 Daily Chart Displays Keybot the Quant Turn Signals This Year

The chart shows the Keybot the Quant's turn signals over the last year. It is interesting to look back especially recalling how the algorithm remained stubbornly short in January as the stock markets partied higher day after day. That joy ended quickly into the early February low.

April into early May was a lot of whipsaw choppy action then the bulls took over. Instead of "Sell in May and Go Away" it was "Buy in May and Receive a Big Pay-Day."

Keybot flipped nicely short on 10/4/18 which would have been a perfect set up for the crash last week, however, the tricky bulls lured the algo back to the bull side. That resulted in the quick whipsaw back to the short side and the rout was on in equities. The wild and large moves in stock prices will continue both intraday and day to day due to the higher volatility. The VIX prints a 26-handle last week when only days before had an 11-handle.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as this week of historic and erratic market action ends. The algorithm remains active printing six numbers on Friday including the pre-scheduled number. The bears remain in control with the algo number 7 points below the signal line.

The bulls recover the key SPX 2747 bull-bear line in the sand avoiding the Armageddon scenario for the stock market, for now. There is major trouble ahead for the stock market for weeks and months ahead if the S&P 500 loses the 2747 level.

Keybot is tracking utilities. The UTIL 729.37 level is a bull-bear line in the sand for all five days next week and UTIL ended last week at 724. Thus, after Monday's opening bell, the utilities will likely fail which is a feather in the bear's cap.

The SPX 2747 level, the NYA 12806 level, UTIL 729.37, CPER 17.36 and XLF 27.83 are key bull-bear parameters for early next week.

10/14/18; 7:00 PM EST =

10/12/18; 3:01 PM EST = +24; signal line is +31

10/12/18; 1:33 PM EST = +10; signal line is +31

10/12/18; 1:12 PM EST = +24; signal line is +33

10/12/18; 12:32 PM EST = +10; signal line is +34

10/12/18; 10:00 AM EST = +24; signal line is +36

10/12/18; 9:36 AM EST = +24; signal line is +36

10/11/18; 3:50 PM EST = +10; signal line is +37

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the wild market action continues. Keybot prints six numbers in the Thursday session and the bears continue running the show with the algo number 27 points below the signal line. Two major negative levels have been crossed in markets; NYA 12806 and SPX 2745. If prices remain below these levels the stock market is in serious trouble for weeks and months to come.

The bears need weaker copper, commodities and utilities to create further downside carnage. Bears need CPER under 17.34 now only 2 cents on the bull side at 17.36. Bulls obviously need to push copper higher. Copper futures are down -0.2% as this message is typed; the price action is along the flatline overnight.

The bulls need SPX above 2745 as soon as possible to stop the stock market bleeding. This level will at least stop the market selling and stabilize the situation. If the S&P 500 comes up to kiss the 2745 and rolls back over lower, the stock market can potentially experience a crash event.

If bulls attain the SPX 2745 level and hold it, they can probably flip Keybot back to the long side if either NYA moves above 12806 and/or XLF above 27.97. Q3 bank earnings begin in a couple hours and will send XLF wildly up, or down.

If CPER falls below 17.34, stocks will continue sideways to sideways lower. If SPX moves above 2745, the stock market will stabilize into the weekend. If the SPX regains 2745, and either NYA moves above 12806 and/or XLF above 27.97, consider the imminent turn back to the long side to be in play. Keybot prints a pre-scheduled number later this morning. The beat goes on.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/11/18; 3:50 PM EST = +10; signal line is +37

10/11/18; 3:21 PM EST = +24; signal line is +38

10/11/18; 3:12 PM EST = +10; signal line is +39

10/11/18; 3:03 PM EST = -6; signal line is +41

10/11/18; 2:41 PM EST = +10; signal line is +44

10/11/18; 9:36 AM EST = +24; signal line is +46

10/10/18; 2:46 PM EST = +8; signal line is +47

STOCK MARKET BEARISH -- SHORT

Keybot the Quant flips to the short side this morning at SPX 2846 with a whipsaw move. The algo flipped long yesterday but then wanted to flip short from lunchtime into this morning. Stocks gapped-down at the opening bell so typically a recovery occurs. A gap-down timer was triggered so Keybot did not flip short immediately. Retail, banks, copper and the NYA Index have all lost key levels creating the crash in the stock market today.

The session was a bloodbath. Stocks trended slowly lower and then collapsed in the afternoon. When Ernest Hemingway was asked how he went bankrupt he quipped, "at first very slowly.....then all at once."

It was an odd day since banks held up for most of the morning. Ditto copper. Then they both gave up the ghost. The VIX spikes to 22 so the intraday and day to day moves in the stock market will be large and frequent going forward. There is likely choppy waters ahead.

The bears need weaker utilities and commodities to create further downside carnage. The SPX under 2749 will create a massive leg lower in stocks and potential crash event.

The bulls need to push one of these three parameters into the bull camp as fast as possible to stop the market bleeding; CPER above 17.34, NYA above 12806 and/or XLF above 27.97. CPER is at 17.32 only 2 cents on the bear side so watch copper overnight; it will provide an early indication of stock market direction tomorrow.

The bears are cruising with the algo number 44 points below the signal line. There was carnage today with the S&P 500 beaten 95 points; -3.3%. That will leave a mark.

On the last trade, that only lasted about 24 hours, the algo program loses -1.6% and the actual trading gives up -3%. The benchmark S&P 500 is up +6.4% this year with the actual trading up about +12%. Keybot exits DDM and enters SH. The algo drops down into the single ETF's for the next month. The whipsaw of the algo signals that market choppiness may lay ahead so Keybot uses single 1x ETF's to minimize risk. Markets remain erratic and unstable.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/10/18; 2:46 PM EST = +8; signal line is +47

10/10/18; 1:56 PM EST = +24; signal line is +49

10/10/18; 1:24 PM EST = +38; signal line is +51

10/10/18; 1:05 PM EST = +24; signal line is +53

10/10/18; 11:15 AM EST = +38; signal line is +54
10/10/18; 10:57 AM EST = +54; signal line is +56; go short 2846; (Benchmark SPX for 2018 = +6.4%)(Keybot algorithm program this trade = -1.6%; Keybot algo for 2018 = +2.2%)(Actual results this trade = -2.9%; Actual trading results for 2018 = +11.7%)

10/9/18; 12:36 PM EST = +54; signal line is +58 but algorithm remains long

10/9/18; 10:31 AM EST = +70; signal line is +59; go long 2892; (Benchmark SPX for 2018 = +8.2%)(Keybot algorithm program this trade = +0.6%; Keybot algo for 2018 = +3.8%)(Actual results this trade = +1.3%; Actual trading results for 2018 = +14.6%)

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

Keybot the Quant flips back to the long side on Tuesday at SPX 2892. It was a wild day with stocks down at the opening bell then recovering then fading again late-day. Markets remain a coin-flip. Keybot may whipsaw back to the short side. The algo number is 4 points below the signal line wanting the model to flip to the bear camp especially if the SPX drops under 2874.

Banks, copper and retail stocks run the show currently. Copper and retail stocks created the upside in the stock market yesterday, and bank buoyancy, but retail gave up the ghost after lunchtime. The bulls need RTH aobve 108.32 to prove that up is the direction forward for stocks.

The bears need XLF below 27.97 and/or CPER (copper) under 17.34 to send the stock market lower. These two parameters are causing the stock market to lift and remain buoyant. S&P futures are down -3 about three hours before the opening bell for the regular session.

On the last trade, the algo program gains +0.6% and the actual trading gains +1.3%. The benchmark S&P 500 is up +8.2% this year. The Keybot algo computer program is up +4% this year and the actual trading triggered by the algo is up +15%. Keybot exits DXD and enters DDM. Markets remain erratic and unstable.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/9/18; 12:36 PM EST = +54; signal line is +58 but algorithm remains long

10/9/18; 10:31 AM EST = +70; signal line is +59; go long 2892; (Benchmark SPX for 2018 = +8.2%)(Keybot algorithm program this trade = +0.6%; Keybot algo for 2018 = +3.8%)(Actual results this trade = +1.3%; Actual trading results for 2018 = +14.6%)

10/9/18; 9:59 AM EST = +70; signal line is +59 but algorithm remains short

10/9/18; 9:53 AM EST = +54; signal line is +59

10/9/18; 9:47 AM EST = +38; signal line is +60

10/9/18; 9:36 AM EST = +54; signal line is +61

10/8/18; 12:16 PM EST = +38; signal line is +61

10/8/18; 11:50 AM EST = +22; signal line is +62

10/8/18; 11:00 AM EST = +38; signal line is +62

10/8/18; 10:39 AM EST = +54; signal line is +63
10/8/18; 9:36 AM EST = +38; signal line is +63
10/7/18; 7:00 PM EST = +54; signal line is +65

10/5/18; 9:00 AM EST = +54; signal line is +66

10/4/18; 2:34 PM EST = +54; signal line is +65

10/4/18; 2:21 PM EST = +38; signal line is +65

10/4/18; 1:47 PM EST = +54; signal line is +66

10/4/18; 1:36 PM EST = +38; signal line is +68

10/4/18; 12:44 PM EST = +54; signal line is +69

10/4/18; 12:37 PM EST = +70; signal line is +70 but algorithm remains short

10/4/18; 12:06 PM EST = +54; signal line is +71
10/4/18; 11:50 AM EST = +70; signal line is +72

10/4/18; 11:37 AM EST = +54; signal line is +73

10/4/18; 10:11 AM EST = +70; signal line is +75; go short 2910; (Benchmark SPX for 2018 = +8.8%)(Keybot algorithm program this trade = -0.7%; Keybot algo for 2018 = +3.2%)(Actual results this trade = +0.2%; Actual trading results for 2018 = +13.3%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is bearish with an important day on tap. Banks, copper and retail stocks are the three main parameters currently impacting stock market direction. 

Bears need weaker banks, XLF under 27.98 (now at 28.19), and stocks will tumble lower. S&P futures are -13 as this message is typed but it means nothing unless XLF fails.

Bulls need JJCTF above 30.41 (now at 30.41) and/or RTH above 108.38 (now at 108.18). Copper futures trade higher so that will be a win for the bull camp since JJCTF will pop higher at the opening bell for the regular session.

Each of the three parameters sit on their respective bull-bear lines so the stock market is a coin-flip. This is why the caution flag is out. Today may be a wild day. The open will tell a lot. If both JJCTF and RTH turn bullish, consider the imminent turn in play, and if the SPX is above 2889 and moving higher, Keybot will likely flip long.

For now, the bears rule with the algo number 23 points below the signal line. Bears need XLF under 27.98 and dropping, otherwise, the bulls will probably stage a recovery.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/8/18; 12:16 PM EST = +38; signal line is +61

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is bearish as the new week of trading is underway. The algo is active off the get-go printing five numbers so far on Monday. The fight for stock market direction is between copper and banks. Market bears need weaker banks and for XLF to drop below 27.98. Bulls need stronger copper and for JJTF to move above 30.41.

The XLF spikes to 28.23 as this message is typed so you see the boost in the stock market. JJCTF is battling at the 30.41-30.42 bull-bear level. So bulls win if they can push copper higher while bears win if they push the banks lower. If JJCTF remains bearish (under 30.41) and XLF bullish (above 27.98), the stock market will likely move choppy sideways.

Keybot prints a pre-scheduled number this week on Friday morning. Bulls are trying to pull copper into their camp so they can begin a relief rally. The bears are in control of the stock market with the algo number 23 points below the signal line.

10/14/18; 7:00 PM EST =

10/12/18; 10:00 AM EST =

10/8/18; 12:16 PM EST = +38; signal line is +61

10/8/18; 11:50 AM EST = +22; signal line is +62
10/8/18; 11:00 AM EST = +38; signal line is +62

10/8/18; 10:39 AM EST = +54; signal line is +63

10/8/18; 9:36 AM EST = +38; signal line is +63
10/7/18; 7:00 PM EST = +54; signal line is +65

10/5/18; 9:00 AM EST = +54; signal line is +66

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short with the Friday session underway. Keybot prints the pre-scheduled number remaining bearish with the algo number 12 points below the signal line.

Key parameters are not budging from their respective camps. RTH remains bearish below 108.58. XLF remains bullish above 27.97. JJCTF remains bullish above 30.38. One of these three will likely flinch and dictate the path ahead for the stock market.

10/7/18; 7:00 PM EST =

10/5/18; 9:00 AM EST = +54; signal line is +66

10/4/18; 2:34 PM EST = +54; signal line is +65

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side today at SPX 2910. The algo is very active, the most in a long time, printing 13 numbers today including the turn to the bear side.  Comically, at the opening bell, the banks jumped into the bull camp but simultaneously, the chips jumped into the bear camp. The stock market remains a coin-flip and it is even more of a crap-shoot with the jobs report on tap Friday morning.

The bears need XLF under 27.97, JJCTF under 30.38 and/or UTIL under 711, to create market mayhem. Each parameter that may turn bearish would create another leg lower in the stock market.

The bulls need RTH above 108.59, SOX above 1370 and/or VIX below 12.91. Each parameter that would turn bullish would create a strong relief rally for the stock market. If any one of the three parameters turn bullish, and the SPX moves above 2920, Keybot may whipsaw back to the long side. Markets remain erratic and unstable.

Thus, bears need lower banks, copper and utes. Bulls need higher retail stocks, chips and lower volatility.

On the last trade, that was only three days, the Keybot program loses -0.7%. The actual trading ekes out a +0.2% gain only because the robot was in the DDM ETF (the Dow was strong despite broad market weakness). Keybot exits DDM and enters DXD. For the year thus far, the benchmark S&P 500 is up about +9%, the Keybot the Quant algo program is up +3% and the Keybot the Quant actual trading is up +13%.

Retail, banks and copper tell the story for Friday. Watch the RTH 108.59, XLF 27.97 and JJCTF 30.38 bull-bear lines in the sand. They are the rudders that steer the stock market directional ship. Keybot prints a pre-scheduled number in the morning.

10/7/18; 7:00 PM EST =

10/5/18; 9:00 AM EST =

10/4/18; 2:34 PM EST = +54; signal line is +65

10/4/18; 2:21 PM EST = +38; signal line is +65

10/4/18; 1:47 PM EST = +54; signal line is +66

10/4/18; 1:36 PM EST = +38; signal line is +68

10/4/18; 12:44 PM EST = +54; signal line is +69

10/4/18; 12:37 PM EST = +70; signal line is +70 but algorithm remains short
10/4/18; 12:06 PM EST = +54; signal line is +71
10/4/18; 11:50 AM EST = +70; signal line is +72

10/4/18; 11:37 AM EST = +54; signal line is +73

10/4/18; 10:11 AM EST = +70; signal line is +75; go short 2910; (Benchmark SPX for 2018 = +8.8%)(Keybot algorithm program this trade = -0.7%; Keybot algo for 2018 = +3.2%)(Actual results this trade = +0.2%; Actual trading results for 2018 = +13.3%)

10/4/18; 9:36 AM EST = +84; signal line is +74

10/4/18; 9:10 AM EST = +84; signal line is +74

10/4/18; 9:00 AM EST = +70; signal line is +74 but algorithm remains long
10/3/18; 2:42 PM EST = +84; signal line is +74

10/3/18; 12:14 PM EST = +100; signal line is +75

10/3/18; 11:54 AM EST = +84; signal line is +74

10/3/18; 9:54 AM EST = +68; signal line is +74 but algorithm remains long

10/1/18; 9:41 AM EST = +84; signal line is +74; go long 2931; (Benchmark SPX for 2018 = +9.6%)(Keybot algorithm program this trade = -0.8%; Keybot algo for 2018 = +3.9%)(Actual results this trade = -1.5%; Actual trading results for 2018 = +13.1%)

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

Keybot the Quant remains long printing four numbers in the Wednesday session. Keybot prints another +100 maximum number. The bulls appear unstoppable. The algo number remains 10 points above the signal line.

The current battle for stock market direction is centered around the chips and banks. Bulls win if XLF moves above 27.98 (now at 27.95 only 3 cents on the bear side creating market negativity).

Bears need SOX below 1369.85 (now at 1372 on the bull side creating market positivity). If SOX turns bearish and the SPX drops below 2921, Keybot will likely flip short, hence the imminent turn notation is in the title line. Bears are also helped if RTH falls below 108.60 and/or if JJCTF falls below 30.40. The VIX above 12.89 would also help the bears.

The bulls are driving the bus and will receive more upside fuel with stronger banks. Bulls must also keep semiconductors strong. Bloomberg, however, releases a negative story a few hours ago about China installing nefarious hardware chips in US devices so the chip sector may be slapped around today.

The bears need weaker chips, retail stocks and copper and higher volatility. XLF 27.98 and SOX 1369.85 dictate the stock market direction ahead. The beat goes on.

10/7/18; 7:00 PM EST =

10/5/18; 9:00 AM EST =

10/3/18; 2:42 PM EST = +84; signal line is +74

10/3/18; 12:14 PM EST = +100; signal line is +75

10/3/18; 11:54 AM EST = +84; signal line is +74

10/3/18; 9:54 AM EST = +68; signal line is +74 but algorithm remains long

10/1/18; 9:41 AM EST = +84; signal line is +74; go long 2931; (Benchmark SPX for 2018 = +9.6%)(Keybot algorithm program this trade = -0.8%; Keybot algo for 2018 = +3.9%)(Actual results this trade = -1.5%; Actual trading results for 2018 = +13.1%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side yesterday morning at SPX 2931. The stock market is a coin-flip with the semiconductors not yet willing to choose a direction. SOX is at the 1370 level that Keybot has been calling out for several days. The banks are the bear's best friend.

The drama is with the chips. The SOX bull-bear line in the sand is 1369.65 (price is now at 1370.44). The stock market will weaken if SOX loses the 1370 level. Stocks will strengthen if SOX moves higher. Bears, in addition to SOX sub 1370, need JJCTF (copper) to fall below 30.40 (now at 30.61). Bulls need XLF above 28.00 which will create upside strength for stocks.

Thus, bulls need higher semiconductors and banks. Bears need lower semi's, lower copper and higher volatility.

Stay alert for a whipsaw back to the short side especially in these erratic unstable markets. Chips are running the show and dictating the direction of the broad stock market.

On the last trade, the algo program loses -0.8% and the actual trading dumps -1.5%. The benchmark SPX is up +9.6% this year. The Keybot the Quant computer program is up +4% and actual trading is up +13% on the year. Keybot exits the losing SDS trade and enters DDM. Watch SOX 1370.

10/7/18; 7:00 PM EST =

10/5/18; 9:00 AM EST =

10/1/18; 9:41 AM EST = +84; signal line is +74; go long 2931; (Benchmark SPX for 2018 = +9.6%)(Keybot algorithm program this trade = -0.8%; Keybot algo for 2018 = +3.9%)(Actual results this trade = -1.5%; Actual trading results for 2018 = +13.1%)

9/30/18; 7:00 PM EST EOM EOQ3 = +68; signal line is +73

9/28/18; 10:00 AM EST = +68; signal line is +73

9/28/18; 9:36 AM EST = +68; signal line is +73

9/28/18; 8:40 AM EST = +52; signal line is +73

9/28/18; 6:50 AM EST = +38; signal line is +74

9/27/18; 3:00 PM EST = +52; signal line is +75

9/27/18; 1:12 PM EST = +68; signal line is +76

9/27/18; 12:42 PM EST = +84; signal line is +77 but algorithm remains short

9/27/18; 12:03 PM EST = +68; signal line is +77

9/26/18; 3:47 PM EST = +52; signal line is +77; go short 2908; (Benchmark SPX for 2018 = +8.8%)(Keybot algorithm program this trade = +0.0%; Keybot algo for 2018 = +4.7%)(Actual results this trade = -0.1%; Actual trading results for 2018 = +14.6%)