STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side a short time ago at SPX 3222. There is an ongoing battle between utes, the NYA index and commodities. All three failed during the first hour of trading but the NYA and commodities make a comeback. The bears are in charge with the algo number 7 points below the signal line, which 'taint much. Bears will have to press harder if they want to keep the ball.

Bulls need UTIL above 824 to signal the all-clear for upside joy ahead. Before tomorrow's (Friday's) close, bulls must keep UTIL above 795 and that will paint a stabilization picture for stocks for next week.

Bears need to drive UTIL below 795 by Friday's closing bell at 4 PM EST to prove that they will create carnage in the stock market next week. Bears need NYA below 12452 and/or GTX below 1689.30 to create more selling in the stock market. So right now, NYA and GTX are in the bull camp helping to guide markets higher intraday while UTIL is creating ongoing negativity.

The last trade ran for only 11 hours and the previous trade was only 13 hours. Markets are extremely erratic and unstable currently. Time will tell if the choppiness continues. Interestingly, if the turn would have occurred about a half hour sooner, Keybot would likely switch to single 1x non-leveraged ETF's but instead remains in the 2x ETF's. Keybot exits SSO and enters SDS. On the last trade, the algo program loses a half percent and the actual trading loses about a percent. The choppy action is slapping the quants around. For the year, the S&P 500 slips back into the red, negative on the year, albeit a hair. The Keybot the Quant algoirthm computer program is up +24% on the year and the actual trading generated by Keybot is up +33% this year thus far.

Watch UTIL 824, NYA 12452, GTX 1689.30 and XLF 23.55. Nothing else matters. As usual, watch for a potential whipsaw back to the long side especially in these goofball markets. Bulls likely need to get the SPX positive on the day with UTIL above 824 to try and flip the model back to the long side. The Nasdaq is back to positive on the day.

8/2/20; 7:00 PM EST EOM =

7/31/20; 10:00 AM EST =

7/30/20; 11:08 AM EST = +37; signal line is +44

7/30/20; 11:05 AM EST = +23; signal line is +45

7/30/20; 10:59 AM EST = +39; signal line is +46

7/30/20; 10:39 AM EST = +25; signal line is +47

7/30/20; 10:19 AM EST = +9; signal line is +47

7/30/20; 9:59 AM EST = +23; signal line is +49

7/30/20; 9:43 AM EST = +37; signal line is +50; go short 3222; (Benchmark SPX for 2020 = -0.3%)(Keybot algo this trade = -0.6%; Keybot algo for 2020 = +24.3%)(Actual trading results this trade = -1.2%; Actual trading results for 2020 = +32.9%)

7/28/20; 3:59 PM EST = +53; signal line is +49

7/28/20; 3:48 PM EST = +37; signal line is +48 but algorithm remains long

7/28/20; 12:45 PM EST = +53; signal line is +48

7/28/20; 12:35 PM EST = +37; signal line is +47 but algorithm remains long

7/28/20; 11:42 AM EST = +53; signal line is +47; go long 3242; (Benchmark SPX for 2020 = +0.3%)(Keybot algo this trade = -0.9%; Keybot algo for 2020 = +24.9%)(Actual trading results this trade = -3.3%; Actual trading results for 2020 = +34.1%)

7/28/20; 10:22 AM EST = +53; signal line is +47 but algorithm remains short

7/28/20; 10:00 AM EST = +37; signal line is +47

7/27/20; 9:36 AM EST = +40; signal line is +46

7/26/20; 7:00 PM EST = +26; signal line is +46

7/24/20; 12:54 PM EST = +26; signal line is +47

7/24/20; 12:39 PM EST = +42; signal line is +47

7/24/20; 12:08 PM EST = +26; signal line is +47; go short 3213; (Benchmark SPX for 2020 = -0.6%)(Keybot algo this trade = +5.0%; Keybot algo for 2020 = +25.8%)(Actual trading results this trade = +10.3%; Actual trading results for 2020 = +37.4%)