STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 3304 after the opening bell. After several weeks of drama (look at how many times the quant threatened to go short below), Keybot the Quant calmly slips into the bear camp without fanfare. Copper fails this morning and volatility spikes higher creating negativity in the equities market. The VIX beachball, that Fed Chairman Powell fights to keep underwater each day, slipped from his hands and jumps higher.

Volatility is playing around to and fro on the VIX 13.58 bull-bear line in the sand identified by Keybot. This tells you a lot about market direction. VIX is printing at 13.80 in real-time as this is typed, in the bear camp, creating stock market negativity.

Copper and commodities are looking quite soggy, both in the bear camp, so a whipsaw move would not be anticipated, but, as always, Keybot only sees 1's and 0's and anything can happen, even a whipsaw back to the long side. For now, the bears are in the driver's seat after the long multi-month Federal Reserve money pump. The algo number is 19 points below the signal line.

Bulls must push the VIX below 13.58 immediately and GTX above 2512 and CPER above 17.36. Bulls will likely need at least 2 of these 3 parameters back in the bull camp to stop the bleeding going forward. Now we see what the bears got.

On the last trade, which is the first direction change for Keybot this year, the algo program gains +2.3% the same as the benchmark S&P 500 index thus far this year. The actual trading is up almost +10% already this year, in only 3 weeks time; a smart person would pull the plug on Keybot the Quant and go to the beach the rest of the year focusing on exciting tanned bodies instead of boring computer printouts.

The outperformance in the actual trading is due to the 2x tech ETF QLD. Investors are tripping over each other to buy tech stocks. That hints that a lot of young people, making lots of dough working at tech companies, are buying what they think they know (tech companies). Idiots. They will get their heads handed to them as the year plays out. Keybot exits QLD and enters QID the 2x inverse tech ETF (QID moves up twice as fast as tech stocks move lower, or, it collapses twice as much if tech stocks move higher).

1/26/20; 7:00 PM EST =

1/23/20; 11:00 AM EST = +56; signal line is +75

1/23/20; 10:34 AM EST = +70; signal line is +76

1/23/20; 10:27 AM EST = +56; signal line is +76

1/23/20; 10:12 AM EST = +70; signal line is +76

1/23/20; 9:36 AM EST = +56; signal line is +76; go short 3304; (Benchmark SPX for 2020 = +2.3%)(Keybot algo this trade = +2.3%; Keybot algo for 2020 = +2.3%)(Actual trading results this trade = +9.6%; Actual trading results for 2020 = +9.6%)
1/22/20; 1:33 PM EST = +86; signal line is +76
1/22/20; 10:50 AM EST = +70; signal line is +76 but algorithm remains long

1/22/20; 9:36 AM EST = +86; signal line is +77
1/19/20; 7:00 PM EST = +100; signal line is +77

1/17/20; 10:00 AM EST = +100; signal line is +76

1/17/20; 9:00 AM EST = +100; signal line is +76

1/14/20; 3:59 PM EST = +88; signal line is +75

1/14/20; 10:08 AM EST = +72; signal line is +74 but algorithm remains long

1/14/20; 9:41 AM EST = +88; signal line is +75

1/13/20; 3:51 PM EST = +72; signal line is +74 but algorithm remains long

1/13/20; 2:32 PM EST = +88; signal line is +75

1/13/20; 1:02 PM EST = +72; signal line is +75 but algorithm remains long

1/13/20; 12:37 PM EST = +88; signal line is +76

1/12/20; 7:00 PM EST = +72; signal line is +76 but algorithm remains long

1/10/20; 12:00 PM EST = +72; signal line is +76 but algorithm remains long

1/10/20; 11:15 AM EST = +88; signal line is +77

1/10/20; 9:00 AM EST = +72; signal line is +76 but algorithm remains long

1/8/20; 7:50 AM EST = +72; signal line is +77 but algorithm remains long

1/8/20; 7:15 AM EST = +58; signal line is +77 but algorithm remains long

1/8/20; 6:43 AM EST = +72; signal line is +78 but algorithm remains long

1/8/20; 3:06 AM EST = +58; signal line is +79 but algorithm remains long

1/7/20; 10:12 AM EST = +72; signal line is +80 but algorithm remains long

1/7/20; 8:40 AM EST = +58; signal line is +80 but algorithm remains long

1/6/20; 3:48 PM EST = +72; signal line is +80 but algorithm remains long

1/6/20; 3:38 PM EST = +58; signal line is +80 but algorithm remains long
1/6/20; 3:02 PM EST = +72; signal line is +79 but algorithm remains long

1/6/20; 9:36 AM EST = +58; signal line is +79 but algorithm remains long

1/6/20; 3:06 AM EST = +74; signal line is +78 but algorithm remains long

1/5/20; 7:00 PM EST = +88; signal line is +75

1/3/20; 9:41 AM EST = +88; signal line is +75

1/3/20; 3:06 AM EST = +74; signal line is +73

1/1/20; Begin 2020 Data Set = +88; signal line is +71; go long 3231; (Benchmark SPX for 2020 = 0%)(Keybot algo this trade = 0%; Keybot algo for 2020 = 0%)(Actual trading results this trade = 0%; Actual trading results for 2020 = 0%)

Keybot the Quant Begins 2020 on the Long Side from SPX 3231. All Data 0%. Begin 2020.