STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side yesterday at SPX 7766 the sideways choppy slop is relentless. The early battle yesterday for volatility ends in the bull's favor and then copper runs higher sealing the deal for upside fun. The sideways slop chews up bulls and bears alike. Oil remains key and prices relaxing downwards provides lift for equities.

Nothing's changed. Copper, volatility, and the NYA index remain the key battlegrounds. All 3 are bullish causing the quant to flip to the long side. Do not be surprised if the robot flips short again due to the ongoing sideways pig slop.

The bulls are cruising and cracks will not form in the stock market until CPER loses 39.63, VIX moves above 16.24, and/or NYA drops below 23341. The VIX tells you the path ahead. A VIX under 16.24 will take the bulls into the holidays. A VIX above 16.24 will begin inflicting pain and misery on stocks.

On the last trade that ran for only 3 days, the quant program and actual trading lose another couple percent. Humorously, the algo is doing a better job of going in the wrong direction. It is the nature of choppy sideways markets. For the year, now in Q4, the benchmark S&P 500 is up +13%. The quant program is down -7% and the actual trading is off -17% on the year thus far underperforming the benchmark by 30 percentage-points. This wide spread has never occurred in the 18-year history of the algorithm; not even close. Interesting stuff. It makes you wonder what will happen next. Keybot the Quant exited SDS and entered QLD.

The VIX is trading at 15.47 with the bulls puffing their chests out wanting to take stocks higher. Copper needs to drop -0.6% to turn CPER bearish but copper futures are up +0.4% currently. Simply watch the three metrics above, especially copper and volatility that are running the show right now. The bulls do not want to let go. Don't Let Go by Johnny Blue Skies and the Dark Clouds. Sturgill has one helluva voice. Great sax and slide solos.

10/11/26; 7:00 PM EST =
10/9/26; 10:00 AM EST =
10/5/26; 12:36 PM EST = +1; signal line is -11; go long 7766 (Benchmark SPX for 2026 = +13.4%)(Keybot algo this trade = -1.5%; Keybot algo for 2026 = -6.9%)(Actual results this trade = -2.4%; Actual results for 2026 = -16.8%)
10/5/26; 9:36 AM EST = +1; signal line is -11
10/5/26; 7:15 AM EST = -15; signal line is -11
10/5/26; 5:54 AM EST = -29; signal line is -10
10/5/26; 4:08 AM EST = -15; signal line is -9
10/5/26; 3:25 AM EST = -29; signal line is -9
10/4/26; 7:00 PM EST = -15; signal line is -8
10/2/26; 10:12 AM EST = -15; signal line is -7
10/2/26; 9:52 AM EST = +1; signal line is -7 but algorithm remains short
10/2/26; 9:00 AM EST = -15; signal line is -7
10/2/26; 3:21 AM EST = -15; signal line is -6
10/1/26; 9:36 AM EST = -29; signal line is -6
10/1/26; 7:28 AM EST = -15; signal line is -5
10/1/26; 6:53 AM EST = +1; signal line is -4 but algorithm remains short
9/30/26; 7:00 PM EST EOM EOQ3 = -13; signal line is -4
9/30/26; 3:59 PM EST = -13; signal line is -4; go short 7653 (Benchmark SPX for 2026 = +11.8%)(Keybot algo this trade = -1.0%; Keybot algo for 2026 = -5.4%)(Actual results this trade = -1.8%; Actual results for 2026 = -14.4%)