STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips long this morning at SPX 6797. The bears were celebrating their success at taking the ball but they fumble and the bulls retake control of stocks. The algo number is 16 points above the signal line. The bullish euphoria prevails! Happy Days Are Here Again.

Utilities, semiconductors and volatility are the parameters impacting market direction. The bulls will send stocks higher unless the bears can pull UTIL back below 1079, or SOX back below 6835, or push VIX above 17.00. Use these three metrics to gauge the strength of any downside.

If 1 of the 3 turn bearish, the quant will likely be in position to go short again so remain vigilant for another whipsaw. The circus continues. Inflation data was tame so that paves the way for more Fed rate cuts and, along with the QE light, that free money will flow into the stock market creating higher stocks to make the wealthy class richer. Three cheers for the crony capitalism filth! 

Utes, chips and volatility are what matter currently.

On the last trade that ran for a big 2 days, the quant program and actual trading post marginal losses. For the year, with only 8 trading days remaining in the year, the SPX is up about +16%, the quant program is up +26% and the actual trading generated by the quant is up +34%. Keybot the Quant exited SDS and entered SSO.

12/21/25; 7:00 PM EST =
12/19/25; 10:00 AM EST =
12/18/25; 10:29 AM EST = +41; signal line is +25; go long 6797 (Benchmark SPX for 2025 = +15.6%)(Keybot algo this trade = -0.1%; Keybot algo for 2025 = +26.2%)(Actual results this trade = -0.3%; Actual results for 2025 = +33.5%)
12/18/25; 9:36 AM EST = +25; signal line is +25 but algorithm remains short
12/18/25; 8:36 AM EST = +9; signal line is +25
12/17/25; 10:56 AM EST = -5; signal line is +25
12/17/25; 10:50 AM EST = +9; signal line is +26
12/16/25; 2:34 PM EST = +25; signal line is +27
12/16/25; 2:17 PM EST = +11; signal line is +27
12/16/25; 1:41 PM EST = +25; signal line is +28
12/16/25; 12:55 PM EST = +11; signal line is +29
12/16/25; 10:50 AM EST = +25; signal line is +30
12/16/25; 10:26 AM EST = +11; signal line is +30
12/16/25; 9:53 AM EST = +25; signal line is +31
12/16/25; 9:46 AM EST = +11; signal line is +32; go short 6788 (Benchmark SPX for 2025 = +15.4%)(Keybot algo this trade = +1.7%; Keybot algo for 2025 = +26.3%)(Actual results this trade = +2.1%; Actual results for 2025 = +33.8%)