Saturday, January 20, 2024

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the long side yesterday at munchtime at SPX 4815. The chips orgy sends the SPX to the highest number in history at 4842.07. America's wealthy elite dance with glee celebrating the rigged crony capitalism system while spitting on the faces of the hundreds of millions of have-not's. The semiconductor party was not the reason the robot flipped back to the bull side; it was copper.

Volatility remains important with the VIX 15.00 bull/bear line in the sand in play for the week ahead. The bulls crippled Uncle Vix again taking a baseball bat to his kneecaps, so he fell down below 15.00 sending stocks higher. This behavior was inconsequential to the quant as it remained short; copper was the big focus. CPER rallied and moved above the bull/bear line in the sand at 23.56 and the rest was history. Copper faltered after that but by then shorts were covering running for their lives creating an upside short-covering thrust sending the SPX to all-time highs.

Copper, commodities and volatility are all that matter currently to stock market direction. As copper goes, so goes the market. CPER begins on Monday at 23.61 only a nickel above the 23.56 line in the sand or 0.2%. Watch copper futures overnight Sunday to see if they are down more than -0.2%, if so, it spells trouble ahead for US stocks and a potential flip back to the short side. If copper rallies, the bulls are likely in good shape for a few days. You will know it is over for the stock market when VIX pops above 15 and remains above.

On the last trade that only ran for a couple days, the benchmark S&P 500, the US stock market, turns positive on the year up about a percent thus far. The quant program and actual trading each lose almost -2% on the trade. On the year thus far, 3 weeks in, the Keybot the Quant program is down -0.7% and the actual trading this year turns negative at -0.3%; call everything flat. Keybot exits SH and enters SPY. The last trade does not qualify as a whipsaw event in the quant programming and the whipsaw timer has now expired. However, on Friday, the timer was still in effect so the quant flipped into SPY remaining in the 1x ETF's. If a whipsaw occurs on Monday, the 1x ETF's will continue but if there is no whipsaw on Monday, the next move, which would be to the short side, will likely be with a 2x ETF.

Watch CPER 23.56 (now creating bullishness in US stocks), VIX 15.00 (creating bullishness), and GTX 3447 (creating bearishness in stocks). One of them will flinch and send US stocks in that respective direction. The choppy slop in 2024 is a lot like the choppy slop of 2023.

1/21/24; 7:00 PM EST =
1/19/24; 1:46 PM EST = +34; signal line is +25
1/19/24; 1:36 PM EST = +18; signal line is +25 but algorithm remains long
1/19/24; 12:38 PM EST = +34; signal line is +26; go long 4815; (Benchmark SPX for 2024 = +0.9%)(Keybot algo this trade = -1.8%; Keybot algo for 2024 = -0.7%)(Actual results this trade = -1.7%; Actual results for 2024 = -0.3%)
1/19/24; 10:00 AM EST = +18; signal line is +26
1/18/24; 9:00 AM EST = +18; signal line is +27
1/17/24; 2:38 PM EST = +18; signal line is +27
1/17/24; 2:18 PM EST = +4; signal line is +27
1/17/24; 1:34 PM EST = +18; signal line is +27
1/17/24; 12:16 PM EST = +4; signal line is +28
1/17/24; 10:44 AM EST = +18; signal line is +29
1/17/24; 9:36 AM EST = +4; signal line is +30
1/17/24; 9:35 AM EST = +18; signal line is +31; go short 4729; (Benchmark SPX for 2024 = -0.9%)(Keybot algo this trade = +0.1%; Keybot algo for 2024 = +1.1%)(Actual results this trade = +0.2%; Actual results for 2024 = +1.4%)

Wednesday, January 17, 2024

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side this morning at SPX 4729 during the drop out of the gate. Utilities and copper have been creating the topping effect in US stocks in recent days, and the rollover, and today Uncle Vix rises from the Pet Sematary.

Volatility has been asleep for months but it rises from the grave creating market angst and stock turmoil. The bull/bear line in the sand is VIX 15.05. Bears win above. Bulls win below. VIX is at 15.30 as this is typed so bears are winning. Bring up a minute chart and you can see that the VIX just back-kissed 15.05 at 10:15 AM EST as the robot called out ahead of time. Of course it did.

If VIX remains bearish (above 15.05), watch the chips. If SOX falls below 3923, Willie will be turning out the lights because the Party's Over. Bulls need VIX below 15.05 to create stock market buoyancy and give themselves breathing space.

On the last trade, both the quant program and the actual trading generated by the quant gain a hair. On the year thus far, the benchmark SPX is down about a percent and the Keybot the Quant program and actual trading are each up about a percent. Keybot exits SPY and enters SH. The whipsaw timer expires in 3 days so starting next week the robot will go back into 2x ETF's when it changes direction as long as a whipsaw does not occur today or tomorrow.

VIX 15.05 tells you everything you need to know. Here she comes down to 15.11 for another back test of the 15.05 support. Bounce or die.

1/21/24; 7:00 PM EST =
1/19/24; 10:00 AM EST =
1/18/24; 9:00 AM EST =
1/17/24; 9:36 AM EST = +4; signal line is +30
1/17/24; 9:35 AM EST = +18; signal line is +31; go short 4729; (Benchmark SPX for 2024 = -0.9%)(Keybot algo this trade = +0.1%; Keybot algo for 2024 = +1.1%)(Actual results this trade = +0.2%; Actual results for 2024 = +1.4%)
1/14/24; 7:00 PM EST = +18; signal line is +31 but algorithm remains long
1/11/24; 9:36 AM EST = +18; signal line is +31 but algorithm remains long
1/10/24; 12:20 PM EST = +34; signal line is +31
1/10/24; 11:34 AM EST = +18; signal line is +31 but algorithm remains long
1/9/24; 9:36 AM EST = +34; signal line is +32
1/8/24; 2:16 PM EST = +50; signal line is +32
1/8/24; 2:07 PM EST = +34; signal line is +31
1/8/24; 11:30 AM EST = +50; signal line is +31
1/8/24; 10:50 AM EST = +34; signal line is +31; go long 4724; (Benchmark SPX for 2024 = -1.0%)(Keybot algo this trade = +1.0%; Keybot algo for 2024 = +1.0%)(Actual results this trade = +1.2%; Actual results for 2024 = +1.2%)

Tuesday, January 9, 2024

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant logs the first turn for 2024 yesterday flipping long at SPX 4724.  Utilities and copper were pumped creating the euphoric glee in the stock market.

On the last trade, the first of 2024, the quant program and actual trading each gain about one percent. The benchmark S&P 500 starts the year down -1%. Yesterday's upside orgy regained much of this loss so the SPX is at 4764 and started the year at 4770; call it flat. The robot exited SH and entered SPY remaining in 1x ETF's since the whipsaw timer is still in play.

Utes and the red metal are all that matter right now. Keybot the Quant is also tracking semiconductors and commodities. UTIL 898.50 and CPER 23.65 are the bull/bear lines in the sand you can watch for a couple-few days. Prices are above and bullish, thus, the stock market rises. If either fails, stocks will stall and flatten. If both fail, stocks will fall down the rabbit chute.

The caution flag remains out due to the ongoing chop suey price action that is rolling over into this year. Copper futures are down -0.4%. There you go. CPER needs to drop -0.4% to make bears happy so the drama for today begins. Watch to see if CPER drops Down Under 23.65 which would usher in stock market sogginess.

1/14/24; 7:00 PM EST =
1/8/24; 2:16 PM EST = +50; signal line is +32
1/8/24; 2:07 PM EST = +34; signal line is +31
1/8/24; 11:30 AM EST = +50; signal line is +31
1/8/24; 10:50 AM EST = +34; signal line is +31; go long 4724; (Benchmark SPX for 2023 = -1.0%)(Keybot algo this trade = +1.0%; Keybot algo for 2023 = +1.0%)(Actual results this trade = +1.2%; Actual results for 2023 = +1.2%)
1/8/24; 10:11 AM EST = +34; signal line is +30 but algorithm remains short
1/7/24; 7:00 PM EST = +18; signal line is +30
1/5/24; 3:10 PM EST = +18; signal line is +30
1/5/24; 1:46 PM EST = +34; signal line is +31 but algorithm remains short
1/5/24; 1:05 PM EST = +18; signal line is +30
1/5/24; 11:26 AM EST = +34; signal line is +30 but algorithm remains short
1/5/24; 10:57 AM EST = +50; signal line is +29 but algorithm remains short
1/5/24; 9:00 AM EST = +34; signal line is +28 but algorithm remains short
1/4/24; 12:26 PM EST = +34; signal line is +27 but algorithm remains short
1/4/24; 10:01 AM EST = +50; signal line is +26 but algorithm remains short
1/2/24; 9:36 AM EST = +34; signal line is +24 but algorithm remains short
1/1/24; Begin 2024 Data = +18; signal line is +24; go short 4770; (Benchmark SPX for 2024 = +0.0%)(Keybot algo this trade = +0.0%; Keybot algo for 2024 = +0.0%)(Actual results this trade = +0.0%; Actual results for 2024 = +0.0%)

Monday, January 1, 2024

S&P 500 Index Chart Displaying Keybot the Quant Algorithm Turn Signals in 2023



The SPX daily chart above displays the Keybot the Quant turn signals for 2023. The chart shows the choppy sloppy whipsaw behavior in 2023 that chews-up bulls and bears alike. The beautiful down trend in September-October and big rally in November-December is where the money was made this year first short, then long, respectively.

The chop suey this year was similar to 2017 when the SPX whipsawed all year long. Most quants cannot handle the choppiness so the plugs are pulled on their robots but the superiority of Keybot the Quant is on full display. The robot was flat to negative in September due to the constant back and forth signals that wreak havoc on quants. However, the stock market trended nicely for the last 4 months of the year first down then up and you make the money in trending markets. 

Keybot the Quant has never printed a negative year since the program went on line in 2008.

Keybot the Quant Algorithm Final 2023 Results; Another Banner Year

Keybot the Quant logs another profitable year this year. Was there ever any doubt? Actually, yes, considering the robot was underwater in September. It was a whipsaw choppy sloppy market all year long chewing up bulls and bears alike. The SPX maintained an upward bias during the year amidst the chop. The big money was made on the short side during September and October and then on the long side during November and December.

Keybot the Quant algorithm is rezeroed for the new year. The robot remains in SH the 1x short ETF that moves opposite to the S&P 500 on an equal or near-equal percentage basis.

The benchmark SPX gains a big +24% in 2023 with America's wealthy cheering the age of crony capitalism and endless money-printing. The Keybot the Quant algorithm program that dictates the flips from long to short and visa versa, gains +13% in 2023. The actual trading generated by the quant, using 1x and 2x ETF's, jumps +23% in 2023 keeping pace with the benchmark S&P 500 index.

Many investment houses pulled the plug on their algorithms half-way through the year since their programs cannot navigate the choppy whipsaw slop. The superiority of Keybot the Quant is obvious this year navigating the treacherous choppy market waters while other robots fail. 2023 was similar to 2017 another year that exhibited choppy whipsaw slop chewing up bulls and bears alike. Trending markets is where you make the dough and this was on full display from September through year-end.

Utilities, commodities and copper are controlling stock market direction as Baby New Year 2024 begins to crawl. UTIL 871.27 is the key bull/bear line in the sand for the week ahead with price starting at 882. This means utes will create stock market bullishness out of the gate tomorrow morning. If UTIL floats higher especially above 9 hundo, the stock market rally has legs. If UTIL begins the day soggy and then slips below 871, the stock market is in trouble and will likely begin sliding down the rabbit hole.

Keybot prints a pre-scheduled number on Friday morning before the market opens in the States. Happy New Year! Auld Lang Syne.

1/7/24; 7:00 PM EST =
1/5/24; 9:00 AM EST =
1/1/24; Begin 2024 Data = +18; signal line is +24; go short 4770; (Benchmark SPX for 2024 = +0.0%)(Keybot algo this trade = +0.0%; Keybot algo for 2024 = +0.0%)(Actual results this trade = +0.0%; Actual results for 2024 = +0.0%)
 
Keybot the Quant Begins 2024 on the Short Side from SPX 4770
 
All Data 0%. Begin 2024
 
-------------------------------------------------------------------------------
 
START 2024 PROGRAM
 
Begin Printing
 
Mark and Set
 
Date Stamp 1/1/24; 4:25 AM EST
 
START 2024 PROGRAM
 
Copyright Enforced. 2008. 2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016. 2017. 2018. 2019. 2020. 2021. 2022. 2023. 2024. Keybot the Quant. The Keystone Speculator. K E Stone. All Rights Reserved.
 
End – End – End – End – End – End – End – End – End – End – End
 
--------------------------------------------------------------------------------
 
END OF 2023 RESULTS:
 
The SPX (S&P 500) Benchmark Index Gains a Huge 24.2% in 2023
(SPX Started 2023 at 3840 and Ended at 4770 Catapulting 930 Points Higher Reversing the Huge 2022 Collapse of 926 Points)
 
Keybot the Quant Algorithm (Computer Program Only) During 2023: +12.9%
 
KEYBOT THE QUANT ACTUAL TRADING RETURN FOR 2023 INCLUDING ALL COMMISSIONS, COSTS AND FEES: +22.5%
 
Keybot the Quant has never printed a losing year
 
Keybot the Quant is a long-short algorithm that oscillates between a bullish (long) position and a bearish (short) position seeking the smoothest path through the trading year using the S&P 500 (SPX; the US stock market) as the benchmark comparison index
 
Number of Position Changes (Long to Short or Short to Long) During 2023: 40
 

12/31/2022

3840

Go Short

8:37 AM

SH

16.03

1/4/2023

3841

Cover Short

9:47 AM

SH

16.02

1/4/2023

3841

Go Long

9:47 AM

SPY

382.83

1/30/2023

4023

Sell Long

2:52 PM

SPY

401.04

1/30/2023

4023

Go Short

2:52 PM

SDS

41.91

1/31/2023

4059

Cover Short

2:52 PM

SDS

41.16

1/31/2023

4059

Go Long

2:52 PM

SPY

404.65

2/21/2023

4024

Sell Long

10:15 AM

SPY

401.81

2/21/2023

4024

Go Short

10:15 AM

SH

15.35

2/23/2023

4018

Cover Short

9:36 AM

SH

15.39

2/23/2023

4018

Go Long

9:36 AM

SPY

403.49

2/23/2023

3977

Sell Long

11:43 AM

SPY

397.21

2/23/2023

3977

Go Short

11:43 AM

SH

15.55

2/27/2023

4017

Cover Short

10:09 AM

SH

15.40

2/27/2023

4017

Go Long

10:09 AM

DIA

331.81

3/1/2023

3955

Sell Long

10:09 AM

DIA

326.61

3/1/2023

3955

Go Short

10:09 AM

PSQ

13.47

3/2/2023

3978

Cover Short

3:17 PM

PSQ

13.41

3/2/2023

3978

Go Long

3:17 PM

QQQ

293.33

3/7/2023

4024

Sell Long

10:03 AM

QQQ

298.37

3/7/2023

4024

Go Short

10:03 AM

DOG

33.40

3/21/2023

4004

Cover Short

3:40 PM

DOG

34.19

3/21/2023

4004

Go Long

3:40 PM

QQQ

310.37

3/23/2023

3936

Sell Long

2:40 PM

QQQ

308.16

3/23/2023

3936

Go Short

2:40 PM

SDS

43.45

3/27/2023

3984

Cover Short

1:28 PM

SDS

42.46

3/27/2023

3984

Go Long

1:28 PM

SSO

47.24

4/20/2023

4118

Sell Long

3:16 PM

SSO

50.30

4/20/2023

4118

Go Short

3:16 PM

SDS

39.95

5/1/2023

4172

Cover Short

10:00 AM

SDS

39.02

5/1/2023

4172

Go Long

10:00 AM

SSO

51.47

5/2/2023

4152

Sell Long

9:39 AM

SSO

51.04

5/2/2023

4152

Go Short

9:39 AM

SH

14.91

5/5/2023

4104

Cover Short

9:36 AM

SH

15.09

5/5/2023

4104

Go Long

9:36 AM

SPY

409.28

5/12/2023

4104

Sell Long

12:47 PM

SPY

409.68

5/12/2023

4104

Go Short

12:47 PM

SH

15.10

5/17/2023

4137

Cover Short

12:32 PM

SH

14.98

5/17/2023

4137

Go Long

12:32 PM

SPY

413.00

5/24/2023

4128

Sell Long

9:30 AM

SPY

412.18

5/24/2023

4128

Go Short

9:30 AM

DOG

33.85

5/26/2023

4197

Cover Short

10:37 AM

DOG

33.73

5/26/2023

4197

Go Long

10:37 AM

DIA

331.13

6/26/2023

4336

Sell Long

12:11 PM

DIA

337.10

6/26/2023

4336

Go Short

12:11 PM

SDS

36.03

7/7/2023

4425

Cover Short

12:30 PM

SDS

34.70

7/7/2023

4425

Go Long

12:30 PM

SSO

57.51

8/2/2023

4518

Sell Long

10:58 AM

SSO

59.73

8/2/2023

4518

Go Short

10:58 AM

SDS

33.48

8/4/2023

4524

Cover Short

9:33 AM

SDS

59.80

8/4/2023

4524

Go Long

9:33 AM

SSO

59.80

8/8/2023

4479

Sell Long

9:45 AM

SSO

58.69

8/8/2023

4479

Go Short

9:45 AM

SDS

34.10

8/10/2023

4506

Cover Short

9:36 AM

SDS

33.78

8/10/2023

4506

Go Long

9:36 AM

DDM

71.21

8/10/2023

4461

Sell Long

1:57 PM

DDM

70.00

8/10/2023

4461

Go Short

1:57 PM

SH

13.94

8/14/2023

4481

Cover Short

10:51 AM

SH

13.90

8/14/2023

4481

Go Long

10:51 AM

SPY

447.11

8/15/2023

4450

Sell Long

10:10 AM

SPY

444.19

8/15/2023

4450

Go Short

10:10 AM

PSQ

10.71

8/23/2023

4431

Cover Short

12:43 PM

PSQ

10.68

8/23/2023

4431

Go Long

12:43 PM

QQQ

368.82

8/24/2023

4428

Sell Long

10:31 AM

QQQ

366.61

8/24/2023

4428

Go Short

10:31 AM

RWM

23.32

8/29/2023

4446

Cover Short

9:47 AM

RWM

23.24

8/29/2023

4446

Go Long

9:47 AM

IWM

185.77

9/6/2023

4464

Sell Long

10:50 AM

IWM

186.30

9/6/2023

4464

Go Short

10:50 AM

DOG

32.61

9/14/2023

4499

Cover Short

11:10 AM

DOG

32.35

9/14/2023

4499

Go Long

11:10 AM

IWM

185.69

9/15/2023

4466

Sell Long

10:57 AM

IWM

183.72

9/15/2023

4466

Go Short

10:57 AM

SH

14.02

11/1/2023

4209

Cover Short

9:48 AM

SH

14.84

11/1/2023

4209

Go Long

9:48 AM

SSO

51.03

12/20/2023

4705

Sell Long

3:57 PM

SSO

63.37

12/20/2023

4705

Go Short

3:57 PM

SDS

30.66

12/22/2023

4769

Cover Short

9:45 AM

SDS

29.89

12/22/2023

4769

Go Long

9:45 AM

SPY

474.95

12/29/2023

4777

Sell Long

10:46 AM

SPY

475.91

12/29/2023

4777

Go Short

10:46 AM

SH

12.97

12/31/2023

4770

Cover Short

4:25 AM

SH

12.99

 
Date – SPX – Position – Time Stamp – ETF – Price
 
Begin Printing Trade Data Entries Exits Reverse Order
 
FINAL 2023 RESULTS
 
Mark and Set
 
Date Stamp 1/1/24; 4:25 AM EST
 
End – End – End – End – End – End – End – End – End – End – End
 
-----------------------------------------------------------------------------------
 
12/31/23; Algorithm Zeroed for 2024 Data EOM EOQ4 EOH2 EOY2023 = +18; signal line is +23; go short 4770; (Benchmark SPX for 2023 Final = +24.2%)(Keybot algo this trade = +0.2%; Keybot algo for 2023 Final = +12.9%)(Actual results this trade = +0.2%; Actual results for 2023 Final = +22.5%)
12/29/23; 10:46 AM EST = +18; signal line is +23; go short 4777; (Benchmark SPX for 2023 = +24.4%)(Keybot algo this trade = +0.2%; Keybot algo for 2023 = +12.7%)(Actual results this trade = +0.2%; Actual results for 2023 = +22.3%)