STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 4220 at yesterday's opening bell so the choppy whipsaw slop continues. The robot is already champing at the bit to flip back to the long side with the algo number 2 points above the signal line.

Volatility is running the show these days. VIX 13.25 is the bull/bear line in the sand as identified by the quant and VIX is trading now, in real-time, at 13.06, no check that, 13.07. Thus, the bulls want control of the stock market back and the dip-buyers are helping out. Bears need 18 more cents higher in the VIX, otherwise, they got nothing and will fold like a cheap suit.

The bulls simply need to keep VIX sub 13.25 and trending lower and to send the SPX above 5229 to likely flip the quant long. S&P futures are up +21 so the bulls want the ball back so another whipsaw may be on tap after the opening bell. Interestingly, the pump higher in futures will likely trigger the gap-up timer and delay any flip to the long side by about 90 minutes. Thus, mathematicians say thus a lot, a potential flip to the long side may not occur, if it occurs, until after 11 AM EST. Time will tell.

On the last trade that ran for only a couple days, the quant program and actual trading are flat. The benchmark S&P 500 is up +9.4% this year a big start for the bulls. The Keybot the Quant algo program and actual trading generated by the quant are each down a percent so far this year. Keybot exited SSO and entered SDS.

The VIX 13.25 line in the sand tells you everything. Bulls win below and bears above. Bears need weaker semiconductors, copper and commodities to get the ball rolling south for US stocks. For now, Fed Chairman Powell maintains his jackboot on the throat of volatility insuring that the US stock market remains buoyant and the crony capitalism system resilient.

VIX is at 13.06 so the bears need to eat their spinach and push volatility higher if they want Peter Cottontail to fill their basket with Easter eggs. The quant prints a pre-scheduled number this morning and another on Thursday morning. The first quarter trading ends on Thursday (EOQ1).

3/31/24; 7:00 PM EST EOM EOQ1 =
3/28/24; 10:00 AM EST =
3/26/24; 10:00 AM EST =
3/25/24; 10:08 AM EST = +31; signal line is +29 but algorithm remains short
3/25/24; 9:30 AM EST = +17; signal line is +28; go short 5220; (Benchmark SPX for 2024 = +9.4%)(Keybot algo this trade = -0.1%; Keybot algo for 2024 = -1.0%)(Actual results this trade = +0.3%; Actual results for 2024 = -1.2%)
3/25/24; 3:06 AM EST = +17; signal line is +28 but algorithm remains long
3/24/24; 7:00 PM EST = +31; signal line is +28
3/20/24; 3:29 PM EST = +31; signal line is +27; go long 5224; (Benchmark SPX for 2024 = +9.5%)(Keybot algo this trade = -2.2%; Keybot algo for 2024 = -0.9%)(Actual results this trade = -2.5%; Actual results for 2024 = -1.5%)