STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side this morning at SPX 7728; finally. This nearly 2-month period was bazaar with choppy sideways slop, AI hype, Iran War hype, inflation, bond yields and other drama. Even with the big up day today, it appears that nothing is resolved.

After the drawn-out battle where the quant was a whisker from flipping long several times, it finally makes the move in a nonchalant quiet move higher. Banks remain negative despite the joy. Utilities collapse further but no one notices since they are too busy buying stocks. Retail stocks remain in the crapper.

Oil falling in price and semiconductor joy sends the stock market higher today. The chips have an orgy party extending their weekend fun through Monday. Will the party fun continue or will the chips throw up in the back seat of the Uber?

The battle remains chips versus banks. Bulls need XLF above 56.60 to prove that the rally is the real deal. Check it in the premarket.

When the quant performs strange moves, and the last 2 months was the strangest behavior ever for the robot in nearly 20 years of operation, stay alert for a quick whipsaw back to the short side. Sometimes a jog move will follow with a whipsaw back to the short side, but then the bulls steal the ball back again, but the model then flips short again over a week or two period. The excitement is not finished. Perhaps it has only just begun.

Bears need SOX below 11930 to get the stock market ball back. Weaker copper and higher volatility will also help the bears.  Bulls need stronger banks.

On the last trade that ran for almost 8 weeks, the quant program loses -4% and the actual trading is thwacked -8%. Ouchie. Not good. It was a messy period that could have went either way. The quant has never printed a down year so it has Q4 to redeem itself. The benchmark SPX is up +13% this year. The Keybot the Quant program is down -4% and the actual trading is down -13% underperforming the benchmark S&P 500 by 26 percentage-points. The robot has its work cut out for it. Keybot exits PSQ and enters SSO a 2x leveraged ETF.

Watch banks, chips, copper and volatility. It was Closing Time for the bears today and tomorrow we see what the bulls got.

9/27/26; 7:00 PM EST =
9/25/26; 10:00 AM EST =
9/21/26; 11:15 AM EST = +4; signal line is -7; go long 7728 (Benchmark SPX for 2026 = +12.9%)(Keybot algo this trade = -4.4%; Keybot algo for 2026 = -4.4%)(Actual results this trade = -8.2%; Actual results for 2026 = -12.6%)
9/20/26; 7:00 PM EST = +4; signal line is -7
9/18/26; 3:59 PM EST = +4; signal line is -7
9/17/26; 9:36 AM EST = -12; signal line is -6
9/17/26; 9:00 AM EST = -28; signal line is -6
9/17/26; 3:06 AM EST = -28; signal line is -4
9/15/26; 10:07 AM EST = -42; signal line is -3
9/14/26; 2:48 PM EST = -26; signal line is -1
9/14/26; 1:54 PM EST = -42; signal line is +1
9/14/26; 3:06 AM EST = -26; signal line is +2
9/13/26; 7:00 PM EST = -12; signal line is +3
9/11/26; 10:00 AM EST = -12; signal line is +3
9/11/26; 8:46 AM EST = -12; signal line is +4
9/10/26; 3:37 PM EST = -26; signal line is +4
9/10/26; 2:15 PM EST = -42; signal line is +5
9/10/26; 10:35 AM EST = -26; signal line is +7
9/10/26; 9:36 AM EST = -10; signal line is +9
9/10/26; 7:24 AM EST = +6; signal line is +10
9/9/26; 3:59 PM EST = +20; signal line is +10 but algorithm remains short
9/9/26; 3:35 PM EST = +4; signal line is +10
9/9/26; 3:21 PM EST = +20; signal line is +10 but algorithm remains short
9/9/26; 2:56 PM EST = +4; signal line is +10
9/9/26; 1:50 PM EST = +20; signal line is +10 but algorithm remains short
9/9/26; 1:42 PM EST = +4; signal line is +10
9/9/26; 12:40 PM EST = +20; signal line is +10 but algorithm remains short
9/9/26; 12:14 PM EST = +4; signal line is +10
9/9/26; 11:53 AM EST = +20; signal line is +10 but algorithm remains short
9/9/26; 11:15 AM EST = +4; signal line is +10
9/9/26; 9:58 AM EST = +20; signal line is +10 but algorithm remains short
9/8/26; 2:54 PM EST = +4; signal line is +10
9/8/26; 2:12 PM EST = +20; signal line is +10 but algorithm remains short
9/8/26; 2:03 PM EST = +4; signal line is +10
9/8/26; 1:07 PM EST = +20; signal line is +11 but algorithm remains short
9/8/26; 12:36 PM EST = +4; signal line is +11
9/8/26; 10:58 AM EST = +20; signal line is +12 but algorithm remains short
9/6/26; 7:00 PM EST = +4; signal line is +12
9/4/26; 9:00 AM EST = +4; signal line is +12
9/2/26; 9:36 AM EST = +4; signal line is +13
9/1/26; 2:41 PM EST = -12; signal line is +14
8/31/26; 7:00 PM EST EOM = +4; signal line is +15
8/30/26; 7:00 PM EST = +4; signal line is +16
8/28/26; 10:00 AM EST = +4; signal line is +17
8/27/26; 9:36 AM EST = +4; signal line is +17
8/26/26; 9:39 AM EST = +36; signal line is +18 but algorithm remains short
8/26/26; 9:38 AM EST = +20; signal line is +18 but algorithm remains short
8/25/26; 3:56 PM EST = +4; signal line is +18
8/25/26; 2:42 PM EST = +20; signal line is +19 but algorithm remains short
8/25/26; 2:26 PM EST = +4; signal line is +20
8/25/26; 2:14 PM EST = +20; signal line is +21
8/25/26; 10:00 AM EST = +4; signal line is +21
8/25/26; 9:39 AM EST = +4; signal line is +22
8/24/26; 9:36 AM EST = +20; signal line is +23
8/23/26; 7:00 PM EST = +4; signal line is +23
8/20/26; 12:07 PM EST = +4; signal line is +25
8/20/26; 11:05 AM EST = +20; signal line is +25
8/20/26; 10:30 AM EST = +4; signal line is +25
8/20/26; 9:51 AM EST = +20; signal line is +25
8/20/26; 9:36 AM EST = +4; signal line is +26
8/19/26; 10:34 AM EST = +20; signal line is +27
8/19/26; 10:16 AM EST = +36; signal line is +26 but algorithm remains short
8/19/26; 10:09 AM EST = +20; signal line is +25
8/19/26; 9:40 AM EST = +36; signal line is +26 but algorithm remains short
8/19/26; 9:39 AM EST = +20; signal line is +25
8/18/26; 2:24 PM EST = +4; signal line is +25
8/18/26; 12:56 PM EST = +20; signal line is +27
8/18/26; 10:37 AM EST = +36; signal line is +27 but algorithm remains short
8/18/26; 9:49 AM EST = +20; signal line is +27
8/18/26; 9:36 AM EST = +36; signal line is +27 but algorithm remains short
8/18/26; 9:00 AM EST = +20; signal line is +27
8/17/26; 11:18 AM EST = +20; signal line is +27
8/17/26; 10:10 AM EST = +36; signal line is +29 but algorithm remains short
8/17/26; 9:49 AM EST = +20; signal line is +29
8/16/26; 7:00 PM EST = +36; signal line is +30 but algorithm remains short
8/14/26; 10:00 AM EST = +36; signal line is +30 but algorithm remains short
8/11/26; 3:59 PM EST = +36; signal line is +30 but algorithm remains short
8/11/26; 12:05 PM EST = +20; signal line is +30
8/11/26; 9:37 AM EST = +36; signal line is +31 but algorithm remains short
8/10/26; 3:57 PM EST = +20; signal line is +32
8/9/26; 7:00 PM EST = +36; signal line is +32 but algorithm remains short
8/7/26; 9:00 AM EST = +36; signal line is +33 but algorithm remains short
8/6/26; 10:06 AM EST = +36; signal line is +33 but algorithm remains short
8/6/26; 9:36 AM EST = +20; signal line is +33
8/5/26; 3:59 PM EST = +6; signal line is +34
8/5/26; 12:52 PM EST = +22; signal line is +35
8/5/26; 11:55 AM EST = +36; signal line is +35 but algorithm remains short
8/4/26; 11:16 AM EST = +22; signal line is +35
8/4/26; 9:36 AM EST = +6; signal line is +35
8/3/26; 10:55 AM EST = +20; signal line is +36
8/3/26; 10:07 AM EST = +36; signal line is +36 but algorithm remains short
8/2/26; 7:00 PM EST EOM = +20; signal line is +36
7/31/26; 3:59 PM EST = +20; signal line is +36
7/31/26; 9:00 AM EST = +36; signal line is +36 but algorithm remains short
7/30/26; 7:37 AM EST = +36; signal line is +36 but algorithm remains short
7/29/26; 3:39 PM EST = +22; signal line is +36
7/29/26; 2:06 PM EST = +36; signal line is +37
7/29/26; 10:05 AM EST = +22; signal line is +37; go short 7403 (Benchmark SPX for 2026 = +8.1%)(Keybot algo this trade = -1.0%; Keybot algo for 2026 = +0.0%)(Actual results this trade = -0.8%; Actual results for 2026 = -4.4%)