STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the bull camp yesterday afternoon at SPX 5961 after another crazy whipsaw session. Chips, retail stocks, commodities and volatility jump into the bull camp from munch time forward yesterday sending stocks strongly higher. The algo was at -46 in the morning and then only 3-1/2 hours later flipped long now at +14 only 15 points above the signal line.

Volatility flipped to the bull camp in the final minutes yesterday so obviously, the focus should be on the VIX 16.98 line in the sand. VIX is at 16.69 in the early morning hours on the East Coast so the bulls are dancing with S&P futures positive. Bears got nothing unless and until they push the VIX back above 17.

The bulls need higher utilities, banks and copper to create more upside joy. Utes and copper are preferring the bear bed for now. Watch the XLF 48.60 line in the sand that the robot is tracking. XLF is in the bear camp at 48.42 only 18 cents away from creating bull market rocket fuel.

Thus, bulls win today and stocks continue higher if XLF moves above 48.60. Bears win today if the VIX moves above 16.98. Banks versus volatility. Two enter the cage match but only one will exit.

On the last trade that ran for only 3 days, the quant program gains about a percent but the actual trading loses a percent. This happens once in a while where the direction was correct, to the downside, but the SH ETF was shunned due to the excessive bullishness in play. For the year, with only 5 trading days remaining, the SPX benchmark index is up +25% a repeat of the prior year. The Keybot the Quant algo program is up +11% and the actual trading generated by the quant gains +18% this year thus far. The quant is underperforming the benchmark index by 7 percentage points but no one is complaining. Keybot exited SH and entered SPY.

Merry Christmas. It is time to Jingle Bell Rock. The old days. The VIX is at 16.66, trip 6's, in the bull camp, and XLF is trading up 2 pennies to 48.44 in the pre-market, in the bear camp. The bears need 32 cents higher in vol (VIX) while the bulls need 16 cents higher in the banks (XLF). One of them will flinch. 

12/31/24; 7:00 PM EST EOM EOQ4 EOY2024 =
12/29/24; 7:00 PM EST =
12/23/24; 3:56 PM EST = +14; signal line is -1
12/23/24; 1:41 PM EST = +0; signal line is -1; go long 5961; (Benchmark SPX for 2024 = +25.0%)(Keybot algo this trade = +0.7%; Keybot algo for 2024 = +10.9%)(Actual results this trade = -1.0%; Actual results for 2024 = +17.7%)
12/23/24; 12:10 PM EST = -14; signal line is +0
12/23/24; 11:21 AM EST = -30; signal line is +2
12/23/24; 10:14 AM EST = -46; signal line is +3
12/23/24; 10:07 AM EST = -30; signal line is +6
12/23/24; 10:01 AM EST = -16; signal line is +8
12/23/24; 10:00 AM EST = +0; signal line is +10
12/23/24; 9:39 AM EST = +2; signal line is +11
12/22/24; 7:00 PM EST = -14; signal line is +14
12/20/24; 11:15 AM EST = -14; signal line is +16
12/20/24; 11:14 AM EST = -30; signal line is +18
12/20/24; 10:00 AM EST = -44; signal line is +20
12/20/24; 9:36 AM EST = -44; signal line is +23
12/19/24; 10:40 AM EST = -28; signal line is +25
12/18/24; 3:16 PM EST = -14; signal line is +27
12/18/24; 2:52 PM EST = +2; signal line is +28
12/18/24; 2:45 PM EST = +16; signal line is +29; go short 6001; (Benchmark SPX for 2024 = +25.8%)(Keybot algo this trade = -1.0%; Keybot algo for 2024 = +10.2%)(Actual results this trade = -2.0%; Actual results for 2024 = +18.7%)