STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 5224 after Pope Powell flaps dovish wings creating more record highs for stocks. Jerome has Uncle Vix in a headlock and then throws him to the floor. Powell lifts his pale green robe enough to keep his black jackboot on the throat of volatility guaranteeing stock market upside.

Recent days are a snooze-fest with the quant printing only pre-scheduled numbers until today when Pope Powell opened his mouth decreeing that stocks should rally more. Powell opened his arms releasing white doves as if it were a wedding.

Tomfoolery aside, the robot is tracking the VIX 13.31 palindrome as the key bull/bear line in the sand. In late trading today, VIX fell through 13.31 so it was off to the races with bullish traders buying with both fists. VIX 13.31 is the key stock market rudder currently. Very simply, stocks go up if VIX remains below 13.31. If VIX pops back above 13.31, the stock market will sell-off. Easy-peasy.

Utilities reman bearish with a weekly downtrend in place a harbinger of very bad things ahead for stocks (not a run of the mill -5% or -10% pullback but a -10% to -20% or more pullback). This window will likely remain open for a couple more weeks. Bulls need UTIL above the 874-882 range over the coming days and week or two to prove that more upside in the stock market can be accomplished, otherwise, it will likely indicate that the stock market is bigtime sick underneath with trouble ahead.

Commodities, copper, retail stocks, banks and chips are all in orgy town having a good ole time. Stocks are making record highs on the backs of these party sectors. Keybot is tracking SOX 4595 as the key bull/bear line in the sand; stocks would be toast if SOX 4595 fails.

So the bulls have a turn at bat again. The chop suey this year looks a lot like the whipsaw slop last year. It is obvious that the robot was idling along and markets were waiting on the Fed. Pope Powell rode out on his pale green horse today delivering more Fed wine for the punchbowl. Uncle Vix is trying to wrestle the Fed jackboot off his throat so he can get up off the floor again.

On the last trade that ran for a dozen trading days, the Keybot the Quant algorithm program loses a couple percent and the actual trading loses -2.5% benefiting by some weakness in tech stocks (the loss could have been worse). On the year thus far, the benchmark SPX is up +10% and it is only March. The 'wealth effect' is in full force with the upper middle class and elite privileged out shopping, spending money and having a good ole time. The quant program is down a percent on the year and the actual trading generated by the quant is down -1.5% so far this year a -11.0 percentage point difference in performance compared to the S&P 500 benchmark. Keybot has always redeemed itself from every deficit since it went on-line 15 years ago. Will it again? The quant exits QID and enters SSO remaining in the leveraged 2x ETF's.

All you have to do is watch the VIX 13.31 palindrome and it will tell you everything you need to know.

3/24/24; 7:00 PM EST =
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%)
3/20/24; 3:03 PM EST = +31; signal line is +26 but algorithm remains short
3/19/24; 9:00 AM EST = +17; signal line is +25
3/17/24; 7:00 PM EST = +17; signal line is +25
3/15/24; 10:00 AM EST = +17; signal line is +25
3/10/24; 7:00 PM EST = +17; signal line is +25
3/8/24; 9:00 AM EST = +17; signal line is +25
3/5/24; 9:30 AM EST = +17; signal line is +26; go short 5110; (Benchmark SPX for 2024 = +7.1%)(Keybot algo this trade = +1.4%; Keybot algo for 2024 = +1.3%)(Actual results this trade = +2.5%; Actual results for 2024 = +1.0%)