STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side yesterday afternoon at SPX 4059. The stock market is choppy slop that will chew-up bulls and bears alike. Chop suey.

The SPX keeps playing above and below the critical 4038 bull/bear line in the sand that dictates the fate of the US stock market going forward.

There is likely more drama, even more whipsaws, ahead since Pope Powell brings the tablets down from On High today and will impact markets as well as the Monthly Jobs Report Friday morning and other economic data in between.

Note that both of the flips over the last couple days occur at 2:52 PM EST. Isn't that interesting? It is not too surprising. The US trading session is split into 65-minute segments. The pivot points for stock prices typically occur around these changes from one segment to the next since the robots are executing their buy and sell programs.

The last 65-minute trading segment is 2:55 PM through 4:00 PM EST. The robots are adjusting positions at this interface. Thus, pay attention to the 20-minute period between 2:45 PM and 3:05 PM as the robots are trading positions. The flips at 2:52 PM also hint that the robot-driven trading is dominating. Typically, over 90% of the trades occurring daily are robots but now it is likely far higher.

Also, as fate would have it, the Federal Reserve rate decision is today with a 25 bip hike expected. The announcement should not be a surprise but King Powell's press conference between 2:30 PM EST and 3:30 PM EST may move markets and lo and behold this is in that robot switchover timeframe. Will Jerome flub a question at 2:55 PM EST today to create market angst?

On the last trade, that only lasted one day, if you got up to go to the can you missed it, the quant program loses a percent and the actual trading generated by Keybot the Quant loses a couple percent. On the year thus far, separation is starting to occur with the benchmark S&P 500 up nearly +6%. The Wall Street analyst bozo's said stocks would crater to begin the year.

The Keybot the Quant algorithm program is up +4% this year and the actual trading generated by the quant is up +3%. Keybot exits SDS and enters SPY flipping from the leveraged 2x ETF's back to the single 1x ETF's due to the whipsaw. Keybot will remain in 1x ETF mode for 30 days. This reduces risk in a chop suey environment.

Markets are in Pope Powell's hands today. Watch SPX 4038 and also GTX 3502. The bears probably need about a 57-point drop in the SPX today to flip short so watch Powell to see if he stumbles.

2/5/23; 7:00 PM EST =
2/3/23; 9:00 AM EST =
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%)
1/31/23; 10:50 AM EST = +45; signal line is +37 but algorithm remains short
1/31/23; 10:00 AM EST = +31; signal line is +37
1/30/23; 2:52 PM EST = +32; signal line is +37; go short 4023; (Benchmark SPX for 2023 = +4.8%)(Keybot algo this trade = +4.8%; Keybot algo for 2023 = +4.8%)(Actual results this trade = +4.8%; Actual results for 2023 = +4.7%)