STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side yesterday at SPX 5249 as the quant's algo number explodes 34 points above the signal line. Traders are fed more unpalatable chop suey. This year is looking a lot like last year with the choppy whipsaw price action. Let's do the Twist, baby, like Chubby. Volatility drops so the bears are smacked in the teeth by a bull hoof. Pope Powell is sitting on Uncle Vix's head, like the Easter Bunny sitting on an egg, keeping volatility down on the floor so stocks can go up and everyone have a Happy Easter.

As the stock market makes new all-time record highs, the VIX is not dropping as would be expected. VIX is a touch above 13 when it should be at 9 to 11 considering the stock market. VIX should at least have an 11 or 12 handle. This divergence is important. However, what matters is the 1's and 0's and the quant identifies VIX 13.25 as the bull/bear line in the sand with price at 13.01 so bulls win and the bears fold like origami.

Buy programs entered in force during the last 65-minute trading segment yesterday at 2:55 PM EST (the day is divided into six (6) 65-minute periods). The robots were in charge executing big buy programs at 2:55 PM EST. Lots of moves are occurring here so watch 2:55 PM EST, give or take 5 or 10 minutes, to see if stocks take a sharp move up or down since that trend will likely maintain into the close. The market makers goosed stocks to get the +10.0% double-digit print to close out the quarter. Such is the crony capitalism system. Stocks typically rally the last couple days going into a 3-day holiday weekend.

During the late-day bull orgy, utilities, a major sector that has been lagging, leaps into action, like Popeye eating spinach, overtaking key levels. For the week ahead, UTIL 873.15 and 879.70 are uber important. Price begins at 882.24 above and bullish creating stock market joy. Bears need UTIL below 879.70 to stop the stock market rally and below 873.15 to reintroduce negativity. Bulls are fine if UTIL remains above 879.70.

For the week of 4/8/24, UTIL 881.67 and 879.70 (may be a few pennies higher or lower) are the two key bull/bear levels. Thus, UTIL must end the week ahead above 880-882 or there will be Hell to pay in stocks. The stock market is controlled by utes and volatility currently.

Bulls must keep VIX below 13.25 and UTIL above 873.15 and 879.70 to maintain the upside rally in the stock market. Bears need VIX above 13.25 and UTIL below 879.70 to get the downside rolling again. On Friday, 4/5/24 at 4:00 PM EST, UTIL must be above 880-882 or there will be trouble for US stocks going forward.

On the last trade, that ran during the holiday-shortened week, the quant and algo program each lose about a percent. For the year, with Q1 now cast in concrete, the benchmark S&P 500, the symbol SPX, the US stock market, is up +10.0%. Sound the Seven Trumpets! The four horseman of the financial apocalypse, the ECB, BOJ, PBOC and Fed, on the pale green horse, ride across the sky. The Keybot the Quant algo program and the actual trading generated by the quant are each down a couple percent on the year so the SPX is outperforming the robot by 12% in 2024. Keybot exits SDS and enters SSO.

VIX 13,25 and UTIL (DJU) 879.70 tell you everything you need to know about stock market direction. The markets are Dancing in the Dark like the Boss and Courteney as the Big Man plays his sax.

4/7/24; 7:00 PM EST =
4/5/24; 9:00 AM EST =
3/31/24; 7:00 PM EST EOM EOQ1 =
3/28/24; 3:31 PM EST = +62; signal line is +28
3/28/24; 3:01 PM EST = +46; signal line is +27
3/28/24; 10:00 AM EST = +30; signal line is +27
3/28/24; 9:30 AM EST = +30; signal line is +27; go long 5249; (Benchmark SPX for 2024 = +10.0%)(Keybot algo this trade = -0.6%; Keybot algo for 2024 = -1.6%)(Actual results this trade = -0.9%; Actual results for 2024 = -2.1%)
3/27/24; 11:11 AM EST = +30; signal line is +28 but algorithm remains short
3/27/24; 10:28 AM EST = +16; signal line is +28
3/26/24; 3:59 PM EST = +30; signal line is +28 but algorithm remains short
3/26/24; 3:51 PM EST = +16; signal line is +28
3/26/24; 10:00 AM EST = +30; signal line is +29 but algorithm remains short
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%)