STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips back to the long side yesterday afternoon at SPX 3984 with the markets remaining in whipsaw psycho mode. The whole year is choppy slop thus far.

The algo wanted to flip long yesterday at the open but the gap-up move occurs delaying the turn and as the timer expired, other parameters would not latch. It is crazy interesting price action. As the session continued, volatility turned bullish creating the turn to the long side. 

The algo number is 21 points above the signal line. The SPX starts on Tuesday at 3978 but the S&P futures are down -3.

VIX 21.05 and SPX 3960 are running the show. Both are bullish with the VIX now trading at 20.97 and the SPX is at 3977 to start the day. Volatility is a game of pennies right now. Watch the VIX like a hawk. If the VIX remains below 21.05, the bulls remain in the game to drive stocks wildly higher. If the VIX moves above 21.05, and it is teasing in real-time, that would signal a soggy or flat day ahead and the bulls will likely not have the oomph to take stocks much higher.

Bears stop the upside in stocks if VIX moves above 21.05 and the downside for stocks will accelerate, and the quant likely flip short, if the SPX drops below 3960. It's fun. Keybot prints a pre-scheduled number this morning at 10 AM EST. Month and Q1 ends on Friday.

On the last trade, that ran for a couple days, the quant program loses a percent and the actual trading loses a couple percent. For the year, with Q1 almost finished, the benchmark S&P 500 is up about +4%. The Keybot the Quant program and actual trading generated by the quant are each down -2% on the year thus far. Keybot exits SDS and enters SSO remaining in the 2x leveraged ETF's.

Watch VIX 21.05. It is more important than what the futures are doing since it tells you where the markets are going.

4/2/23; 7:00 PM EST EOM EOQ1 =
3/31/23; 10:00 AM EST =
3/28/23; 10:00 AM EST =
3/27/23; 1:28 PM EST = -17; signal line is -38; go long 3984; (Benchmark SPX for 2023 = +3.8%)(Keybot algo this trade = -1.2%; Keybot algo for 2023 = -2.1%)(Actual results this trade = -2.3%; Actual results for 2023 = -2.3%)
3/26/23; 7:00 PM EST = -31; signal line is -39 but algorithm remains short
3/24/23; 3:23 PM EST = -31; signal line is -40 but algorithm remains short
3/24/23; 3:08 PM EST = -45; signal line is -40
3/24/23; 2:43 PM EST = -31; signal line is -41 but algorithm remains short
3/23/23; 2:40 PM EST = -45; signal line is -42; go short 3936; (Benchmark SPX for 2023 = +2.5%)(Keybot algo this trade = -1.7%; Keybot algo for 2023 = -0.9%)(Actual results this trade = -0.7%; Actual results for 2023 = +0.0%)