STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the short side yesterday at SPX 4464 but is already wanting to whipsaw back to the long side with the algo number 8 points above the signal line. The internal parameters are not fully latched so the robot did not flip long late day yesterday and it looks like today will be off to a soggy start. Watch banks and volatility.

The weakness in stocks started with a battle between copper and retail stocks and both failed into the bear camp. Then the banks collapsed followed by a spike in volatility. Late day, however, volatility and banks flip back into the bull camp so obviously these two parameters are controlling stock market direction currently.

Bears need VIX above 15.10 to create blood and carnage on Wall Street. Let's see, in real-time about an hour before the US open, the VIX is at 15.05. Bears only need another nickel to lock in negativity going forward.

Bears also need XLF below 34.24. XLF closed at 34.32 in the bull camp so it is a game of pennies. Let's see, in the pre-market, XLF is trading at...... wait for it ........ wait a bit longer for it ......... 34.22. Thus, all things same, the bears will receive more juice due to weak financials and the S&P futures are down -23 points. There's VIX at 15.09 now. Watch it closely.

VIX 15.10 and XLF 34.24 will tell you if the downside in the US stock market has legs.

On the last trade that ran for about a week, the losses from the previous trade are reversed. It is all choppy slop this year stocks running all over the creation but not going anywhere. Sounds like a Social D song. The benchmark SPX is up +16% on the year with the quant program down a couple percent and the actual trading generated by the robot down about -4% so far this year. Keybot exits IWM and enters DOG.

9/10/23; 7:00 PM EST =
9/6/23; 2:28 PM EST = +11; signal line is +3 but algorithm remains short
9/6/23; 1:18 PM EST = -5; signal line is +2
9/6/23; 1:00 PM EST = -19; signal line is +1
9/6/23; 10:50 AM EST = -5; signal line is +2; go short 4464; (Benchmark SPX for 2023 = +16.3%)(Keybot algo this trade = +0.4%; Keybot algo for 2023 = -2.2%)(Actual results this trade = +0.3%; Actual results for 2023 = -3.6%)
9/6/23; 10:07 AM EST = +11; signal line is +2
9/6/23; 10:00 AM EST = +27; signal line is +2
9/6/23; 9:57 AM EST = +11; signal line is +1
9/6/23; 9:44 AM EST = +27; signal line is +1
9/6/23; 9:36 AM EST = +11; signal line is +0
9/5/23; 3:57 PM EST = +27; signal line is -1
9/3/23; 7:00 PM EST = +43; signal line is -2
9/1/23; 9:00 AM EST = +43; signal line is -4
8/31/23; 7:00 PM EST EOM = +43; signal line is -6
8/29/23; 10:08 AM EST = +43; signal line is -9
8/29/23; 10:06 AM EST = +27; signal line is -11
8/29/23; 10:00 AM EST = +11; signal line is -13
8/29/23; 9:50 AM EST = +12; signal line is -14
8/29/23; 9:47 AM EST = -4; signal line is -16; go long 4446; (Benchmark SPX for 2023 = +15.8%)(Keybot algo this trade = -0.4%; Keybot algo for 2023 = -2.6%)(Actual results this trade = -0.3%; Actual results for 2023 = -3.9%)