STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side on Friday afternoon at SPX 3742. It is interesting that it was at 2 PM EST-ish the same time as the flip to the short side the day before. The stock market remans a coin toss reacting to Fed  comments.

Banks and copper matter as mentioned in the prior post, and the Friday action was at XLF 32.03 (now at 32.19) and CPER 21.00 (now at 20.98). The banks crept higher on Friday then whammo, once the financials jumped into the bull camp, it was up, up and away with the stock market. Copper, however, could not make it up the bull hill with CPER stalling only 2 pennies from complete bull victory.

Thus, as copper goes, so goes the stock market. Copper futures are trading...... drum roll please ...... flatter than a newlywed's soufflé, so the red metal is not tipping its hand as yet.

Bulls must maintain the strength in banks so watch XLF in the pre-market. GS, BAC, JPM, C, WFC, etc..., will tell you what the banks are doing.

The algo number is  only 8 points above the signal line so the bulls are not safe by any means. A whipsaw occurs on Friday so another may occur Monday. Bulls must keep XLF above 32.03 and push CPER above 21.00 and it will be smooth sailing for the relief rally.

Bears must keep copper futures negative overnight and push XLF below 32.03 on Monday to create negativity and  send the stock market lower again.

On the last trade that lasted a big 6-1/2 hours, the quant's program lost a couple percent and the actual trading generated by the quant lost -4.4%. Ouchie. That was one heck of a reversal a rare event. The SPX benchmark  is down -22% this year and the actual trading generated by Keybot the Quant is up +39% for a 61 percentage point outperformance. Keybot exited SDS and entered SPY dropping down into the single 1x ETF's for at least the next 30 days to reduce risk. The whipsaw triggers the robot to draw from the 1x ETF que since there may be a very choppy period ahead for 1 to 4 weeks. Choppy markets are chop suey chewing up and spitting out 2x ETF positions long or short.

Keybot prints 2 pre-scheduled numbers this week one on Tuesday morning and the other on Friday morning. The month ends the following Monday, 10/31/22, on Halloween. A kid at the Halloween party provided for disadvantaged youngsters told Keystone to take his mask off but he wasn't wearing one.

10/31/22; 7:00 PM EST EOM =
10/30/22; 7:00 PM EST =
10/28/22; 10:00 AM EST =
10/25/22; 10:00 AM EST =
10/23/22; 7:00 PM EST = -48; signal line is -56
10/21/22; 3:05 PM EST = -48; signal line is -57
10/21/22; 2:22 PM EST = -64; signal line is -57 but algorithm remains long
10/21/22; 2:09 PM EST = -48; signal line is -56; go long 3742; (Benchmark SPX for 2022 = -21.5%)(Keybot algo this trade = -2.2%; Keybot algo for 2022 = +26.2%)(Actual results this trade = -4.4%; Actual results for 2022 = +39.2%)
10/20/22; 2:12 PM EST = -64; signal line is -56; go short 3661; (Benchmark SPX for 2022 = -23.2%)(Keybot algo this trade = +1.1%; Keybot algo for 2022 = +28.4%)(Actual results this trade = +2.0%; Actual results for 2022 = +43.6%)