STOCK MARKET BEARISH -- SHORT

Keybot the Quant finally flips short yesterday morning at SPX 4024 after teasing for the last week. Retail stocks and banks take the pipe. Volatility spikes. The SPX loses the critically-important 4010-4013 bull/bear line in the sand. The bears are cruising with the algo number 52 points below the signal line. It took a while for markets to decide and when they did it was a big move, however, stocks may remain choppy.

There are a lot of moving parts right now too difficult to explain quickly. Armageddon occurs if UTIL loses 927. It is now at 939. Interestingly, the 927 is meaningless next week replaced by...... wait for it..... wait a bit longer for it .... no, you really should wait a bit longer....... 939. This is big drama occurring in the background that few understand. If UTIL ends the week below 939, there will be carnage in stocks next week. A close for the week above 939 will create a more encouraging path for the bulls next week.

Here are 3 parameters you can watch that will tell you what is occurring. Bulls need XLF above 35.70 and/or SPX above 4010-4013 and/or VIX below 22.22. Choose your poison. If all three remain bearish, stocks will continue lower. XLF is up 2 pennies in the pre-market to 35.66 but the bulls need another nickel if they want to stop the selling. Banks are key today so watch them closely.

On the last trade, that ran for about 3 weeks, the quant program and the actual trading each lose about -1%. For the year thus far, the benchmark S&P 500 is up about +5%. The Keybot the Quant program is up +3% and the actual trading generated by the quant is up +2% so far in 2023. The quant remains in the single ETF's due to the erratic choppiness exiting SPY and entering SH.

The bears did some damage yesterday. Watch banks, volatility and the critical SPX 4010-4013 line in the sand going forward. 

2/26/23; 7:00 PM EST =
2/24/23; 10:00 AM EST =
2/21/23; 11:31 AM EST = -15; signal line is +37
2/21/23; 10:57 AM EST = -1; signal line is +39
2/21/23; 10:15 AM EST = +15; signal line is +42; go short 4024; (Benchmark SPX for 2023 = +4.8%)(Keybot algo this trade = -0.9%; Keybot algo for 2023 = +3.0%)(Actual results this trade = -0.7%; Actual results for 2023 = +2.2%)
2/21/23; 9:41 AM EST = +15; signal line is +43 but algorithm remains long
2/21/23; 9:36 AM EST = +29; signal line is +44 but algorithm remains long
2/19/23; 7:00 PM EST = +45; signal line is +45 but algorithm remains long
2/16/23; 9:00 AM EST = +45; signal line is +45 but algorithm remains long
2/12/23; 7:00 PM EST = +45; signal line is +45 but algorithm remains long
2/10/23; 3:43 PM EST = +45; signal line is +45 but algorithm remains long
2/10/23; 3:16 PM EST = +29; signal line is +45 but algorithm remains long
2/10/23; 10:00 AM EST = +45; signal line is +45 but algorithm remains long
2/10/23; 9:52 AM EST = +45; signal line is +44
2/10/23; 9:36 AM EST = +29; signal line is +42 but algorithm remains long
2/5/23; 7:00 PM EST = +45; signal line is +42
2/3/23; 9:00 AM EST = +45; signal line is +41
2/2/23; 1:27 PM EST = +45; signal line is +40
2/2/23; 10:27 AM EST = +61; signal line is +40
1/31/23; 7:00 PM EST EOM = +45; signal line is +38
1/31/23; 2:52 PM EST = +45; signal line is +37; go long 4059; (Benchmark SPX for 2023 = +5.7%)(Keybot algo this trade = -0.9%; Keybot algo for 2023 = +3.9%)(Actual results this trade = -1.8%; Actual results for 2023 = +2.9%)