STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant whipsaws back to the short side at munchtime at SPX 5247. Commodities, banks and volatility jump into the bear camp creating negativity and causing the quant to flip short but, like Friday, the bulls pump the banks and the Fed places its jackboot on the throat of volatility to send stocks higher late-day. Commodities remain in the bear camp but copper is in the bull camp.

The quant is champing at the bit to whipsaw back to the long side with the algo number 6 points above the signal line. Hence, the imminent turn notation is in the title line. Turn, Turn, Turn as Roger plays his Rickenbacker. The internal parameters will not fully latch to permit the move to the long side so, for now, the robot remains short. The erratic markets are getting old. 

If the SPX floats higher tomorrow, above 5302 (+19 points higher on the S&P futures), Keybot the Quant will likely whipsaw back to the long side. Bulls need stronger retail stocks and commodities. Bulls need RTH above 201.50 and GTX above 3655 to create strong upside joy for stocks.

The bears must prevent the SPX from achieving 5302 with all their might. At the same time, bears must pull XLF below 41.22 and/or push VIX above 14.01 to create negativity in stocks.

If a gap-up move occurs tomorrow morning, say about 10 points up at the open or more, the robot will likely wait about 90 minutes before committing to the long side. Bulls will be much better off to slowly and steadily float higher to the SPX 5302 target rather than an immediate gap-up which would be suspect and trigger the gap-up timer.

On the last trade, that ran for only 3 trading hours, the quant program and actual trading each lose about a half percent. On the year thus far, the benchmark SPX is up +10%, the quant program is up about +1% and the actual trading is up about +4% in 2024. Keybot exited QLD and entered SH dropping into the 1x non-leveraged ETF's due to the whipsaw action. Risk must me minimized due to the erratic price action. The 1x ETF's remain in play for the next 30 days.

6/9/24; 7:00 PM EST =
6/7/24; 9:00 AM EST =
6/3/24; 2:37 PM EST = +32; signal line is +26 but algorithm remains short
6/3/24; 1:24 PM EST = +16; signal line is +26
6/3/24; 1:13 PM EST = +2; signal line is +27
6/3/24; 12:44 PM EST = +16; signal line is +28
6/3/24; 12:24 PM EST = +2; signal line is +29; go short 5247; (Benchmark SPX for 2024 = +10.0%)(Keybot algo this trade = -0.4%; Keybot algo for 2024 = +0.7%)(Actual results this trade = -0.5%; Actual results for 2024 = +4.2%)
6/3/24; 11:30 AM EST = +16; signal line is +30 but algorithm remains long
6/3/24; 9:42 AM EST = +32; signal line is +31
6/2/24; 7:00 PM EST EOM = +46; signal line is +32
5/31/24; 3:54 PM EST = +46; signal line is +32; go long 5266; (Benchmark SPX for 2024 = +10.4%)(Keybot algo this trade = +0.2%; Keybot algo for 2024 = +1.1%)(Actual results this trade = +2.8%; Actual results for 2024 = +4.7%)