STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday at SPX 4128 after volatility spikes higher. Retail stocks fail but recover so they must be watched closely. NYA fails which is a major stock market negative but investors are happy this morning on the NVDA AI hype.

The bears are in charge with the algo number 18 points below the signal line. The quant is identifying a battle between NYA and VIX versus RTH and SOX.

Bears need weaker retail stocks and chips to continue the negativity. Bears need RTH below 164.37 and SOX below 3057. Amazon is in RTH and with the NVDA hype, retail stocks may float higher today.

Bulls need VIX back below 19.25 and NYA above 15138. Interestingly, in real-time, the VIX teases down to 19.25 but recovers back to 19.36. If stocks are supposed to rally big today on tech hype, VIX will drop below 19.25. If stocks rally but the VIX does not drop below 19.25, the rally is phony and will die. More importantly, watch NYA 15138 since it tells you a lot about the path ahead for US stocks on a ST and LT basis.

On the last trade that ran for a week, the algo program and actual trading lose a smidgeon. On the year, the SPX is up +7.5%, the quant program is flat and the actual trading generated by the model is up +1.4%. Keybot the Quant exits SPY and enters DOG.

Since VIX is teasing the 19.25 bull/bear line in the sand, watch it closely since it tells you which way stocks are going (inversely).

5/28/23; 7:00 PM EST =
5/26/23; 10:00 AM EST =
5/24/23; 10:57 AM EST = -33; signal line is -15
5/24/23; 10:47 AM EST = -49; signal line is -14
5/24/23; 9:36 AM EST = -33; signal line is -13
5/24/23; 9:30 AM EST = -19; signal line is -12; go short 4128; (Benchmark SPX for 2023 = +7.5%)(Keybot algo this trade = -0.2%; Keybot algo for 2023 = -0.3%)(Actual results this trade = -0.2%; Actual results for 2023 = +1.4%)
5/24/23; 6:02 AM EST = -19; signal line is -12 but algorithm remains long
5/24/23; 4:09 AM EST = -5; signal line is -12
5/24/23; 3:37 AM EST = -19; signal line is -12 but algorithm remains long
5/21/23; 7:00 PM EST = -5; signal line is -12
5/19/23; 11:17 AM EST = -5; signal line is -12
5/19/23; 9:40 AM EST = +11; signal line is -11
5/17/23; 12:32 PM EST = -5; signal line is -12; go long 4137; (Benchmark SPX for 2023 = +7.7%)(Keybot algo this trade = -0.8%; Keybot algo for 2023 = -0.1%)(Actual results this trade = -0.8%; Actual results for 2023 = +1.6%)