Friday, March 3, 2023

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the bull side late yesterday afternoon at SPX 3978. The whipsaws are dizzying. Stocks are flip-flopping more than John Kerry (a political hack that comically said 'I voted to raise taxes before I voted against it'; huh?). The bulls overtake SPX 3962 a critical line in the sand currently so they are running the show.

It is a battle between the banks and SPX 3962. Bulls need XLF above 35.69 to prove they got game. This morning, XLF leaps to 35.69, hits its head on the resistance, and stumbles lower. There will likely be another test.

Bulls need XLF above 35.69. Bears need SPX below 3962. One of them will give way proving the direction ahead. Keybot the Quant will likely flip short again if 3962 is lost.

On the last trade, the losses were marginal. Everything remains relatively flat this year after a couple months of trading. Keybot exits PSQ and enters QQQ. 

The whipsaws are unprecedented for the algorithm and reflect the choppy price action in 2023 thus far. The utilities failure remains extremely ominous but for now the bulls are stretching their legs.

SPX 3962 or XLF 35.69 will tell you the answer going forward. XLF is at 35.62 and SPX is at 4009 as the Friday trade proceeds. The rally is meaningless unless the banks turn bullish (XLF above 35.69).

3/5/23; 7:00 PM EST =
3/2/23; 3:17 PM EST = -3; signal line is -12; go long 3978; (Benchmark SPX for 2023 = +3.6%)(Keybot algo this trade = -0.6%; Keybot algo for 2023 = -0.9%)(Actual results this trade = -0.5%; Actual results for 2023 = -1.6%)
3/2/23; 2:05 PM EST = -3; signal line is -12 but algorithm remains short
3/1/23; 1:29 PM EST = -17; signal line is -13
3/1/23; 12:45 PM EST = -1; signal line is -12 but algorithm remains short
3/1/23; 10:09 AM EST = -17; signal line is -12; go short 3955; (Benchmark SPX for 2023 = +3.0%)(Keybot algo this trade = -1.5%; Keybot algo for 2023 = -0.3%)(Actual results this trade = -1.6%; Actual results for 2023 = -1.1%)

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