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%)