STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 3944. As explained in the previous post, the utes, retail stocks and volatility told the tale. You could see the robot was moving that way. The algo number is only 18 points above the signal line so the bulls are going to have to prove that they can keep the rally going.

Banks are making a late day run watching it in real-time. Bulls need XLF above 33.64. Price is jumping higher to 33.52, now down. That is only a dime away from creating another up leg for stocks.

The UTIL bull/bear line in the sand for this week is 1035.30 and price is at 1048 creating stock market upside. The RTH bull/bear line in the sand is 168.00 with price leaping towards 171 creating bullishness. The VIX bull/bear line in the sand is 25.84 and price drops to a 24 handle completing the trifecta of bullish joy and upside orgy.

The bulls are driving the market ship again and need XLF 33.64 to prove that they got more upside game. Bears need UTIL below 1035.30, RTH below 168 and/or VIX above 25.84 to stop the rally. Any 1 of the 3 would do. If all three remain bullish, stocks will likely pump higher into the weekend.

As a side note for the more advanced kids, yes, you with the pimples, pay attention. UTIL 1035.30 will be meaningless next week replaced by 1020.31. Thus, watch the utilities especially late Friday afternoon to see where UTIL ends the week. If UTIL ends Friday above 1020.31, that tells you next week is a go for bulls. If UTIL stumbles from here and falls through 1035.30 tomorrow or Friday that is trouble for stocks, and if it ends Friday below 1020.31, that means next week is going to start out ugly.

On the last trade, the algo program gains +3% and the actual trading generated by the quant gains +6%. For the year thus far, the benchmark S&P 500, the SPX, the United States stock market, is down -17%. The Keybot the Quant program is up +17% and the actual trading generated by the quant is up +19% outperforming the benchmark by 36 percentage points (that's a lot). Keybot the Quant exits SDS and enters SSO remaining in the 2x ETF's.

XLF 33.64, UTIL 1035.30 this week and 1020.31 next week, RTH 168 and VIX 25.84 are the current parameters dictating stock market direction. They tell you where the stock market puck is going not where it's been.

As this windbag post is typed, XLF finishes the session at 33.47 so that is 17 pennies in the bear camp creating stock market sogginess.

UTIL ends at 1047, RTH at 171 and VIX down to 24.76 all three creating market joy. One of these 4 parameters will flinch tomorrow and tell you what is going on.

9/11/22; 7:00 PM EST =
9/7/22; 12:32 PM EST = -4; signal line is -22
9/7/22; 12:24 PM EST = -20; signal line is -22
9/7/22; 11:25 AM EST = -4; signal line is -21; go long 3944; (Benchmark SPX for 2022 = -17.3%)(Keybot algo this trade = +3.0%; Keybot algo for 2022 = +17.0%)(Actual results this trade = +6.1%; Actual results for 2022 = +19.2%)
9/7/22; 10:59 AM EST = -20; signal line is -21 but algorithm remains short
9/7/22; 10:36 AM EST = -34; signal line is -20
9/6/22; 9:42 AM EST = -50; signal line is -20
9/6/22; 9:36 AM EST = -36; signal line is -18
9/6/22; 3:06 AM EST = -20; signal line is -16
9/5/22; 11:30 AM EST = -34; signal line is -15
9/5/22; 10:44 AM EST = -20; signal line is -12
9/5/22; 3:06 AM EST = -34; signal line is -10
9/4/22; 7:00 PM EST = -20; signal line is -6
9/2/22; 3:55 PM EST = -20; signal line is -4
9/2/22; 3:40 PM EST = -34; signal line is -3
9/2/22; 9:00 AM EST = -20; signal line is +0
9/1/22; 3:55 PM EST = -20; signal line is +1
9/1/22; 3:21 AM EST = -34; signal line is +2
8/31/22; 7:00 PM EST EOM = -20; signal line is +5
8/31/22; 3:10 PM EST = -20; signal line is +6
8/31/22; 2:38 PM EST = -34; signal line is +8
8/31/22; 2:04 PM EST = -20; signal line is +10
8/31/22; 1:44 PM EST = -34; signal line is +12
8/31/22; 4:11 AM EST = -20; signal line is +14
8/30/22; 11:21 AM EST = -34; signal line is +16
8/30/22; 10:06 AM EST = -20; signal line is +17
8/30/22; 10:00 AM EST = +10; signal line is +19
8/30/22; 3:38 AM EST = +7; signal line is +19
8/29/22; 3:59 PM EST = -7; signal line is +19
8/29/22; 12:48 PM EST = +7; signal line is +20
8/29/22; 12:36 PM EST = -7; signal line is +20
8/29/22; 12:31 PM EST = +7; signal line is +21
8/29/22; 12:05 PM EST = -9; signal line is +21
8/29/22; 9:36 AM EST = -23; signal line is +22
8/28/22; 7:00 PM EST = +7; signal line is +22
8/26/22; 3:56 PM EST = +7; signal line is +23; go short 4064; (Benchmark SPX for 2022 = -14.7%)(Keybot algo this trade = +2.7%; Keybot algo for 2022 = +14.0%)(Actual results this trade = +3.4%; Actual results for 2022 = +13.1%)