STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips long at SPX 4127 on Friday morning at 11:43 AM EST. As the previous message told you days before, watch volatility and the chips and they drive the model to flip to the bull side.

It is simple. The bulls need the banks to prove they have more strength and a strong upside orgy would begin. Bulls need XLF above 35.58 and price is at...... wait for it....... wait a bit longer for it ..... 35.57 only one penny away. The XLF tagged 35.59 in the final minute of trading on Friiday but closes below. XLF 35.58 is the parameter to watch since it tells you who wins in the week ahead.

Bears need to keep SOX above 3080 (now at 3115) and VIX below 26.44 (now at 25.72), the 2 parameters that flipped the quant long on Friday, while pushing XLF at least one penny higher. If XLF is higher, the bulls will be throwing confetti watching stocks rally.

If XLF fails at 35.58 and is spanked down, stocks will become soggy. At this point watch the chips and volatility parameters shown. If either one turns bearish, stocks will become negative and if the SOX and VIX both flip back to the bear camp, the stock market will collapse.

So it is that simple; XLF 35.58, SOX 3080 and VIX 26.44. It is all you need to know. If the SOX or the VIX flips bearish, consider the imminent turn to the down side to be in play. If the stock market goes south, watch the SPX 4070-4090 range which likely spells trouble ahead if breached to the downside.

On the last trade that ran for 36 days; about 5 weeks, the quant program gains a big +7% and the actual trading gains a huge +12.5%. For 2022 thus far, the SPX is down -13% while the Keybt the Quant program is up +11% and the actual trading generated by the quant is up +10%. The actual trading flips positive after the -15% deficit a couple months ago a +25% turnaround! The 2x ETF's can punch you in the face but also be rewarding. Keybot the Quant exited SDS and entered SSO.

Today is Memorial Day a time to remember the ones that did not make it home. A salute to these noble brothers and sisters. US markets are closed today and reopen tomorrow for a 4-day trading week. Keybot prints 2 pre-scheduled numbers tomorrow, one for month-end (EOM). Another pre-scheduled number prints on Friday morning.

Banks, chips and volatility tell you everything you need to know. Everything else is noise.

6/5/22; 7:00 PM EST =
6/3/22; 9:00 AM EST =
5/31/22; 7:00 PM EST EOM =
5/31/22; 10:00 AM EST =
5/29/22; 7:00 PM EST = +11; signal line is +5
5/27/22; 11:43 AM EST = +11; signal line is +6; go long 4127; (Benchmark SPX for 2022 = -13.4%)(Keybot algo this trade = +7.3%; Keybot algo for 2022 = +10.7%)(Actual results this trade = +12.5%; Actual results for 2022 = +9.6%)
5/27/22; 10:00 AM EST = -5; signal line is +8
5/27/22; 9:49 AM EST = -5; signal line is +9
5/22/22; 7:00 PM EST = -19; signal line is +11
5/18/22; 9:00 AM EST = -19; signal line is +14
5/17/22; 3:51 PM EST = -19; signal line is +16
5/17/22; 2:46 PM EST = -5; signal line is +18
5/17/22; 2:15 PM EST = -19; signal line is +20
5/17/22; 1:06 PM EST = -5; signal line is +22
5/15/22; 7:00 PM EST = -19; signal line is +24
5/13/22; 10:05 AM EST = -19; signal line is +25
5/13/22; 10:00 AM EST = -19; signal line is +27
5/8/22; 7:00 PM EST = -19; signal line is +29
5/6/22; 9:00 AM EST = -19; signal line is +30
5/1/22; 7:00 PM EST EOM = -19; signal line is +31
4/26/22; 10:00 AM EST = -19; signal line is +33
4/24/22; 7:00 PM EST = -19; signal line is +35
4/22/22; 1:39 PM EST = -19; signal line is +36
4/22/22; 10:13 AM EST = -3; signal line is +37
4/22/22; 9:37 AM EST = +13; signal line is +38
4/21/22; 12:13 PM EST = +27; signal line is +39; go short 4453; (Benchmark SPX for 2022 = -6.6%)(Keybot algo this trade = +0.8%; Keybot algo for 2022 = +3.4%)(Actual results this trade = +1.5%; Actual results for 2022 = -2.9%)