STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the new trading year, 2020, and decade, begins on Thursday, 1/2/20. The quant is re-zeroed for 2020 and remains in the QLD ETF as the year begins. On Tuesday, New Year's Eve, yesterday, the bears were trying to growl with higher volatility. However, the central bankers came in and jammed volatility lower late-day pumping stocks higher into the closing bell and stuffing the 2019 trading year down the bear's throats.

As highlighted the last week or two, utilities are key. Watch UTIL 876.46 which is the bull-bear line in the sand for next week. UTIL is at 879.17 about 3 points above in the bull camp. If UTIL finishes this week sub 876.46, there will be trouble in the stock market next week. Bulls will be throwing confetti if UTIL finishes the week above 876.46. The caution flag remains in play but will go away if utes continue rallying and if volatility remains subdued.

Bears need higher volatility and must push the VIX above 14.37 to create market trouble. Bears will also benefit from RTH below 119.05 and/or CPER below 17.16. Thus, the bears need a higher VIX and lower utes, retail stocks and copper. Bulls must keep these parameters in their camp to keep sending stocks higher. These are the four parameters most greatly impacting stock market direction currently.

The SPX (S&P 500; the stock market) begins the 2020 year at 3231. As Julius Caesar would say at the Colosseum centuries ago, "Let the festivities begin."

1/5/20; 7:00 PM EST =

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 results this trade = 0%; Actual results for 2020 = 0%)