Thursday, October 22, 2026

XLP Consumer Staples and PG Procter & Gamble Weekly Charts; Staples Catapult Higher As Economic Fears Escalate


When bad times are approaching, or people think bad times are coming, they flock to the consumer staples. No matter what the economic times, people need soap to wash their face, toothpaste to brush their teeth, hygiene products for unmentionable stuff, detergent to wash clothes, and toilet paper to wipe their fat arses. For decades, when traders think an economic slump is coming, they will buy consumer staples and PG is at the top of the list and it was orgy time with Procter & Gamble stock today. The Times They Are a Changin'. Come writers and critics who prophesize with your pen.

In the 1990's, Keystone had his chest puffed out thinking he was the next Jesse Livermore and was aware of the potential flight to safety that can occur with the staples. A slowdown was on the come so Keystone went into PG big, as a budding speculator would do, on the long side, and boom, Procter catapulted higher and Keystone was rewarded handsomely. Jesse would have been proud. Keystone's head got so big he could barely fit through the doorway. Then, after taking profits and entering a subsequent trade, he had his fat head handed to him on a platter. Live by the sword, die by the sword.

All the consumer stocks are up this week including COST, KMB, KVUE, PG, WMT, MDLZ, TGT, ENR and BTI. Walmart is pumped higher lately on happy talk. These department stores, such as Walmart, Target and Costco, sell the consumer staples that everyone needs in good times or bad. Diapers are another staple and with folks living into their 90's and such, well, let's just say you need diapers when you are born and then in your twilight days. Pain relief products are also considered staples and when times are bad, people are feeling a lot of pain. 

Yinz young folks do not remember the big scandal around PG back in the 1980's. The Procter & Gamble packaging includes the symbol of what appears to be a man on the moon with stars around. Keystone was working in an engineering office at a large Pennsylvania power plant at the time and the secretary (now called administrative assistants) started telling all of us in the office that the PG symbol is Satanic and the company appears to worship the devil. Oh my. Everyone was up in arms swearing they will never buy another Procter & Gamble if they worship the devil. The problem was it was all a hoax.

Poor PG spent years trying to dispel the hoax but there are probably people decades later that still will not buy a Procter & Gamble product.  Here is an article on that saga if you have an interest in reading more about the hoax. 

Anyhoo, checkout the behavior of the charts above at the start of this year. Remember, everyone was super bullish and having fun without a care in the world into January and then the stock market trouble hit in February. Trades sniffed out the trouble coming ahead of time back then. Isn't that interesting? Will that fractal from the start of the year repeat now? Don't forget to buy soap, toilet paper and toothpaste on your way home from work this evening. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

2026 United States Mid-Term Election Roadmap and Predictions for Election Day 11/3/26; Blue Ripple More Likely than Blue Wave; Affordability Key Issue but Candidate Selections Are Limited; House May Flip to the Democrats but Senate Likely to Remain with Republicans

Keystone’s Contemplations

(where observational thinking, abstract pondering, meditative reflections, and stream of consciousness writing rule the roost)

 

2026 United States Mid-Term Election Roadmap and Predictions for Election Day 11/3/26; Blue Ripple More Likely than Blue Wave; Affordability Key Issue but Candidate Selections Are Limited; House May Flip to the Democrats but Senate Likely to Remain with Republicans

By K E Stone (Keystone)

Every two years, Keystone writes an article for the US elections. Last time was November 2024 the King Donnie Trump reelection saga. Click here if you want to relive that circus drama. This time around in November 2026 is the mid-term elections with all the House members and one-third of the Senate vying to keep their jobs.

We are less than two weeks away from the US mid-term elections that dictate the makeup of the House and Senate. The House is 435 total seats with 218 currently held by the republicans (conservatives; MAGA; right-wing; GOP (Grand Ole Party); authoritarian-leaning; red; elephant) and democrats (liberals; progressives; left-wing; leftists; socialist-leaning; blue; donkey) hold 214 seats. Two seats are vacant and one is held by an independent. 218+214+2+1=435.

The republicans hold the slim 4-seat advantage but the expectation is that the House will flip to the democrats with perhaps a 4 to 10-seat advantage. Some say a much bigger landslide is on tap with a couple dozen seat advantage for democrats but that is probably wishful thinking. Of course, the republicans hope to hold the House even if it is with a slimmer margin than 4 seats.

The democrat more common-sense establishment is concerned that the radical left candidates (there are several in this election cycle) that spout antisemitic remarks and cheer for a move towards a socialist government will be elected, and then hold up democrat legislation unless their radical agendas are followed. America’s corrupt crony capitalism system is twisted into a knot that can’t be undone. Back Against the Wall by SonVolt.

The US Senate consists of 100 seats two for each state. The republicans hold the majority with 53 seats with the democrats at 45 seats. Two seats are independent but they typically side with democrats bumping that number to 47. Democrats are cheering that they can take the Senate as well as the House but that may be wishful thinking. A more realistic outcome is that the republican majority may slip by a hair.

House members serve 2-year terms while senators enjoy 6-year terms. All of the House members face elections every two years while only one-third of the senators are up for election every two years. Some of the House members become entrenched in their position and the electorate gets used to voting for the same old name every two years. This is the time of year when politicians show up in communities with big cardboard checks spreading money around so everyone remembers their name in the voting booth. Such is the crony capitalism system.

All of Keystone’s election articles start at the same place with the most important election metric that is rarely, if ever, wrong; the right track/wrong track poll. If Americans view the country as on the right track, the party in power will be rewarded at the voting booth. If, however, the party in power is viewed as being on the wrong track, they will receive a beating. The US is currently on the wrong track so democrats are favored.

As Emperor Obama faded from power in 2016, and republican Trumpski competed against democrat Crooked Hillary Clinton, the country was thought to be on the wrong track, so Donnie won. When Trump went for reelection in 2020 against democrat Sleepy Joe Biden, the dementia patient, while the COVID-19 pandemic raged on, the country again thought America was on the wrong track. Biden won and Trump was booted from office.

Trump managed the COVID-19 pandemic poorly telling everyone the US was ‘rounding the corner’ until he caught the virus and almost died. Biden won in large part due to Trump’s incompetence at handling the pandemic but most of all because the country was on the wrong track. Two years ago, for the 2024 election, again, the country was on the wrong track so Harris, that was thrown into the race because Biden displayed his mental illness in front of the world on the debate stage, was defeated by Trump.

Donnie Chump won the election two years ago mainly because many Americans could not bring themselves to vote for Kamala the cackling communist and the country was on the wrong track. The US is on the wrong track currently, so this is a big advantage for the democrat candidates.

About 260 million Americans are eligible to vote but only 155 million made the effort for the presidential election two years ago. Typical turnout for presidential elections is about 60% and about 40% for mid-term elections. The presidential elections always have a bigger turnout. Lots of democrats stayed home two years ago in protest to the Biden mess that prohibited a proper democrat primary from taking place. This behavior handed the election to republican Donnie.

About 112 to 118 million Americans voted in the last mid-term elections 30 or 40 million less votes than the presidential cycle. It will be interesting to see how the total vote this time around compares. Are you taking the over or under to 115 million voters for the upcoming election? Perhaps only 100 million will show up to vote since a majority of Americans are unhappy with the current mess in the world and the US.

How will a low turnout impact the results? Generally, low turnout may favor the democrats while a higher turnout than expected may benefit the republicans but this projection is unpredictable and akin to reading tea leaves or turning over Tarot cards.

An NBC News (democrat-run media) poll says 71% of Americans believe the country is on the wrong track not a good omen for the republicans. Only 29% say the right track. Ouch. The number may be a bit high since it is reported by a democrat-run media source. Parse the news you hear depending on where you hear it.

The democrat-run media that will always report the news with a left-leaning slant are CNN, MSNOW, ABC, CBS, NBC, PBS, NPR, New York Times, Washington Post, etc…Note how the democrats dominate the broadcast news channels (ABC, CBS, NBC) and public television (PBS, NPR). Most of the democrat party are ‘never Trumper’s’ and suffer from TDS (Trump Derangement Syndrome) where they must disagree and fight against Trump no matter what, even if he announced a cure for cancer.

The republican-run media that will always report the news with a right-leaning slant are Fox News, Newsmax, OAN, Breitbart, AM talk radio, New York Post, etc… The republicans enjoy a larger cable news viewership with Fox News and Newsmax compared to CNN and MSNOW. Most of the republican party are ‘always Trumper’s’ and suffer from TSS (Trump Sycophant Syndrome) where they will defend even the most stupid thought, comment, or idea that comes out of Donnie’s orange mouth. Trump said he could shoot someone on 5th Avenue and all his little sycophants would not care and he was right. Instead, the Trump sycophants would appreciate the opportunity to lick Donnie’s shoes each day.

The Decision Desk data averaging several polls says 64% wrong track and 31% right track providing support for the NBC data. Based on the most reliable election indicator available, the right track/wrong track poll, democrats should put a substantive beating on the republicans.

During mid-term elections, the president in power typically loses seats to the opposite party; it is a given and expected but is this time different? This is another metric in the democrats favor but the radical democrat candidates do not appeal to the general population and may be a counterweight to the two positive aspects mentioned.

The 2022 mid-term elections were interesting because competency was a key factor that no one considered. Both democrats and republicans were elected or reelected because they were viewed as competent managers. If this mindset repeats, many voters will diss the radical democrat candidates believing their socialist agenda is not a prudent path forward for the United States.

Turnout will dictate the winner. The corrupt democrats and republicans will probably cancel each other out and the independents will dictate the winners. The independents went for Trump two years ago but the failure to deliver lower prices and other broken promises has the independents skewing towards democrats this time around.

Trump’s tax cuts and the relief from taxes on tips and overtime only served to cover part of the higher inflation costs brought on by Donnie’s tariffs and the Iran War he started that has now morphed into a Middle East War. During the campaign, Trump promised to end the Ukraine War in 24 hours but he knew all along that was a lie. Donnie said he would lower prices on day one another lie. Prices and inflation are higher than when he entered office.

Trump is not releasing the Epstein files instead choosing to hide the documents from the public since they likely involve tawdry details about First Lady Melania and how Donnie and Melania met. In addition, Trump is protecting the rich donors that contribute to the republican, or retrumplican, party, since most of them likely loved the supple young bodies they enjoyed on Epstein’s island. Don’t you love crony capitalism filth?

The independents are not the only ones unhappy with Trump’s performance. Blacks are disillusioned especially because of Trump firing government employees. A lot of government positions are filled by people of color trying to get experience and a leg up to other economic and job opportunities but the crony capitalism system flushes their hopes and dreams down the toilet again. There are likely lots of folks of color that are related to or know someone that got canned from their job and are now struggling to get by. These folks are not happy with the republicans.

Do not forget the Latinos that happily voted for Donnie Chump thinking that construction jobs would be plentiful and it would be easy to make a living. But Trump’s aggressive move to round up and remove illegal immigrants from the US has hit a sour note. Americans assumed that Trump would focus on the criminal illegal immigrants, and he has, but no one considered that he would deport anyone that is in the country illegally regardless of whether they ever committed a crime or not.

Neighbor Carlos, that is a great community member and loved by all, with great kids, is rounded up like a two-bit murderer, handcuffed, roughed-up for fun, thrown into a paddy wagon, and deported. Carlos is guilty of entering the US illegally 27 years ago. He and his family’s lives are now in shambles. Americans do not want to see this happen; surely there is a better way.

Since Latinos are most impacted by the immigration crackdown, their opinion on the Don has soured. The incompetent demopublicans and republocrats, more concerned about staying in power and shoving money in their pockets than debating legislation, have failed the country over the last decades refusing to solve the immigration problem. Now the immigration problem, that should have been a clear win for Donnie, descends into a crap hole.

An advantage for republicans is money. Their war chest of campaign funds is far bigger than the democrat stash. A lot of this money will go into television ads that will run non-stop into the election. Negative ads work so the vitrail is already flying across television screens. The negativity is far more degrading nowadays compared to decades ago when a candidate would accuse their opponent’s mother of wearing army boots.

Nowadays any piggish filth that can be found out about a person’s past is fair game for a campaign ad whether it is verified or not. This is why many people that would like to serve in public office do not. No one wants their antics from high school or college to be on full public display.

The republicans reshaped some of the congressional maps in several states (gerrymandering) to provide an advantage in the mid-term elections. The crony capitalism filth is on display everywhere every day. The democrats are no different favoring redistricting if they can secure an advantage. Typically, the gerrymandering does not produce much of an advantage and sometimes the moves backfire.

There are 22 key House races on tap; Arizona’s 6th District, California’s 22nd District, Colorado’s 8th District, Florida’s 14th and 22nd Districts, Iowa’s 1st District, Michigan’s 4th, 7th and 10th Districts, Montana’s 1st District, New York’s 17th District, North Carolina’s 1st and 11th Districts, Ohio’s 7th and 9th Districts, Pennsylvania’s 8th and 10th Districts, Texas’s 15th and 34th Districts, Virginia’s 1st and 2nd Districts, and Wisconsin’s 3rd District.

The 22 close House races above are in 14 different states. Deciphering the numbers as best as possible, there are 6 incumbent democrats, 14 incumbent republicans, and 2 open seats in those 22 states. The 22 key tossups may split down the middle with the democrats maybe in favor by a seat so 11-11 or 12-10 and we can throw a 13-9 in there also. Thus, mathematicians say thus a lot that is why Keystone is not invited to the Halloween gala, the democrats may gain from 5 to 7 seats in the House and that would be enough to gain control of the chamber.

After the smoke clears from the elections, the democrats will probably control the House but only by the same slim margin, or less, as the republicans now enjoy. This outcome would open the door to the scenario mentioned above where a few radical leftist democrats may hold the House hostage preventing legislation to pass unless they are given concessions.

In the Senate, 35 seats are up for grabs but only 10 races appear competitive; Alaska, Georgia, Iowa, Kansas, Maine, Michigan, New Hampshire, North Carolina, Ohio, and Texas. 11 senators in 11 states are leaving office seven republicans and four democrats. Republicans may lose one of these races.

For the 10 tossups, 4 may end up in the democrat camp and 6 in the republican camp if you add 4 percentage-points to the republican candidate polls to allow for poll bias that has shown to not properly account for republican voters. The 10 tossups states start with 3 in the democrat camp and 7 in the republican camp. Thus, democrats may gain a Senate seat, or maybe two, depending on how the night goes.

The US Senate is currently 53 republicans and 47 democrats (2 independents caucus with democrats) so the margin will likely narrow to 52-48 or 51-49 but the republicans should maintain control by a hair.

Thus, approaching the tossup elections with an open mind and picking winners and losers, the House will likely flip to democrat control but with only a 2 to 5 seat majority. The Senate will likely remain in republican control but the margin will narrow providing only a 1 or 2 vote advantage for republicans.

If this scenario plays out, it will likely result in gridlock in Washington, DC, into the presidential election November 2028. Typically, gridlock is good since both corrupt incompetent political parties cannot do as much damage. Wall Street usually likes gridlock since the political arena does not impact stocks. However, we live in different times.

America’s crony capitalism filth system is in its last throes. These times call for action from deadbeat politicians but do not expect any greatness from these corrupt souls. Many problems need addressed but a House under democrat control by a hair and Senate under republican control by a hair does not cut the mustard. Nothing will get accomplished. It likely seals the deal on America’s six-decade walk down the primrose path.

The US middle class has been gutted starting with former President Ronnie Ray-gun in the 1980’s. He busted the unions (airline traffic controllers) and started shipping America’s middle-class jobs overseas to take advantage of the cheap slave labor. This lowers company expenses and shot stocks into the stratosphere on higher earnings making the wealthy class filthy rich while destroying the middle class. The wealthy class benefits themselves since they own the stock market. One-half of Americans do not own a single share of stock. Are you starting to understand crony capitalism filth?

Fast forward 50 years and America consists of 30 million wealthy folks at the top and 300 million peons at the bottom. The middle class, that was the fabric of the nation and the glue that held the United States together, is toast. That’s gone never to return. Capitalism does not exist in practice. It only resides in the pages of theoretical business and economics textbooks.

America is a faux free market crony capitalism system (not capitalism). If you accept the fact that capitalism does not exist, everything occurring nowadays will make a lot more sense. The US has always been a nation where it is more important who you know or who you are related to rather than your skills or knowledge. That is not capitalism.

Americans want the good side of capitalism where everyone is working with many job opportunities and the stock market is screaming higher, but no one wants to feel the pain of the downside of capitalism where businesses and corporations, and banks, must go bankrupt and people will lose jobs. This is the cleansing mechanism that is the hallmark of the capitalism system. Instead, the bloated and mismanaged companies are bailed out by the government mainly to protect the wealthy class that own the stock market and other major investments that would be adversely impacted. This is not capitalism. It is crony capitalism filth. And people want to save this?

Do not worry, however, since there is nothing you can do about it. The politicians, including whatever grifter and corrupt individual is installed as president in two years, are only placeholders in the failing crony capitalism system. It does not matter who is in office. The coming months and years will be chaotic, violent and historic. Even if you are math-challenged, you understand that 300 million is a lot bigger number than 30 million, right?

The drama and silly season around the election is increasing with intensity each day closer to the 11/3/26 elections. The Senate races are receiving lots of attention. In Alaska, incumbent republican Dan Sullivan is trying to keep his seat as the democrats place another man named Dan Sullivan on the docket to create confusion.

In the Texas senate race, democrat James Tallarico is battling republican Ken Paxton. Republicans make fun of Tallarico for being a vegan although it appears that he does eat beef (a Texas staple). Tallarico favors trans rights and other liberal policies that may not jive with red-necked Texas so republicans call him “Talla-freako.” Paxton has his own baggage looking like a corrupt criminal for his past deeds and he is not the best campaigner. Trump selected Paxton after he destroyed republican John Cornyn’s career, that may result in a lost republican seat.

In Michigan, democrat Abdul El-Sayed is running against republican Mike Rogers for the senate seat. El-Sayed is one of the radical democrats that would likely promote a progressive socialist agenda if elected. He refuses to discredit Iran and the IRGC (Islamic Revolutionary Guard Corps; radical Islamist terrorists) that may be his downfall. Remember, all radical Islamists are Muslims, but not all Muslims, not by any stretch, are radical Islamists.

It is time for October surprises to occur where dirty tricks are played on candidates to hurt their chances. In the Ohio governor race, republican Vivek Ramaswamy or his associates, release a video of his opponent’s mother stating that her daughter, Amy Acton, is a liar and should not be elected. As it turns out, the mother is not receiving any motherhood awards due to her past and one of her husbands likely molested Amy years ago. The video may backfire on Ramaswamy and help Amy Acton.

There are likely more October surprises in store including perhaps a big barrage of missiles and drones targeting US military bases and ships in the Middle East by the radical Islamists in Iran and their Houthi partners in Yemen. The IRGC will hope to disrupt the US elections and cause problems for Trump.

Other factors impacting the mid-term elections include Trump’s approval rating at a dismal and record low for both his terms at 29% to 36%. King Donnie has made a mess around the world and domestically. Chump promised he would never start a forever war until he started a forever war in the Middle East.

Another key factor, that no one talks about, is the Elon Musk factor. Musk has money to burn and has dedicated millions into the elections hoping to boost the republican chances. Musk sinks the dough into the ground game and people have short memories that this was a major factor for Trump winning two years ago.

The democrats are always known for their solid ground game and beating on doors to get the vote out. That took a back seat two years ago with Musk money developing a republican ground game that was just as solid as the democrats if not superior. With Musk pumping $27 million into the republican ground game this time around, it will likely make a difference and will probably be a key reason the republicans maintain control of the senate.

Yard signs can be a tell on the elections. Here in southwestern Pennsylvania, apathy is at play. There are not many yard signs for candidates anywhere. One guy down the road put a few signs in his yard but oddly there were two for democrats and one for a republican. Maybe that was a husband-and-wife compromise. At any rate, the lack of yard signs indicates a lack of interest in the elections and voting. With no relief in sight to high prices and inflation month after month, the 300 million peons in America realize that no one is going to help them, so why should they care anymore?

Affordability is a top issue on voter’s minds. Trump promised to lower prices and inflation on day one of his presidency but that was a lie. Common Americans can find no relief from the high cost of living these days that is sending people into debt to survive. King Donnie asks, “What is the big deal that you pay a little more for gas when I saved the world from a nuclear bomb (says he).” Trump is out of touch with the economy just like Biden. Rich people do not feel your pain.

Affordability is on everyone’s minds but unfortunately most candidates up for election do not offer significant management experience. Even though affordability is key, it will likely not resonate much in the selection process. On a bigger scale, talking generally, the affordability issue will favor democrats over republicans.

Donnie Chump may be losing his gravitas. He is an official lame-duck president. The presidential election cycle for 2028 will heat-up starting on November 4th. Presidential primary elections will be coming fast in the spring of 2028. King Donnie is on his farewell adoration tour this campaign season trying to receive as much applause as possible over the coming days to feed his needy narcissistic ego.

Some republican candidates, especially those in purple states (equally split between democrats and republicans), have distanced themselves from Donnie and even asked him not to campaign in their states because they do not want the Trump stink to rub off on them.

The mid-term elections will likely result in a blue ripple instead of a blue wave. The big tsunami blue wave is cheered for by democrats that are referencing polls that may be artificially skewed in their favor. If a blue wave does occur, it will embolden the radical faction of the democrat party and hasten the demise of the crony capitalism system. If the democrats are beaten like a rented mule, that may actually knock sense into the party and move it back to a left of center approach in front of the upcoming presidential election cycle.

If the democrats suffer a disappointing loss or do not meet expectations, it may also destroy the democrat party. If the radical leftists insist on doubling and tripling down going forward after a less than stellar performance in this election, it will split the democrat party apart. The common-sense democrats would have to split away from the radicals and the democrat party may split into two parties. Of course, the republicans would love this scenario and benefit from the democrat chaos.

Trump may be panicking perhaps from his own internal polling since he is holding his adoration rallies in ruby red states that should automatically vote republican. Then again, the simple reason he is on the campaign trail seeking adoration may be because he needs to seek adoration and stand in front of a loyal adoring sycophant crowd for five minutes allowing his subjects to applaud and cheer him. That’s Our Donnie.

Early voting numbers may provide insight into how the elections are developing. Which party is stacking the deck with early voting to gain an early advantage and momentum? So far, in the tossup states discussed above, the turnout and return of mail-in votes is robust not favoring either party yet. This behavior may indicate that turnout will be a little larger than would be expected for the mid-terms and that provides a slight advantage to republicans.

US election days are always set by the first Tuesday after the first Monday in November. This year Election Day falls on Tuesday, 11/3/26.

On Election Day, watch the polls and note how the folks are dressed, their ages, and sex. More women vote than men in US elections. If the polls are stacked with female voters, that may bode well for democrats. If they are blonde women with silver crosses around their neck, that will boost the republican chances.

A lot of young folks voting will likely favor democrat candidates as well as voters in more colorful and flamboyant clothes and those with pink and purple hair. If more of the voters are donning suit jackets and business attire, perhaps carrying a briefcase, that will favor a republican turnout. Turnout is key and will likely dictate the winner.

Keystone’s prediction (that and a dollar will get you a cup of coffee), is for the House to flip to the democrats with a 4-seat advantage while the Senate should remain in republican control but the majority may dwindle to only a 51-49 or 52-48 advantage. Of course, the democrats will claim a great victory saying they will now show King Donnie who’s boss and Trump will boast that the republicans did fine and a blue wave did not occur. Life goes on.

If you vote, good luck to you choosing one corrupt criminal over the other.

Note Added Friday Morning, 10/23/26, at 8:00 AM EST: The mid-term elections are only 11 days away. The Ohio governor race takes a bad turn for republican candidate Ramaswamy as blowback occurs for the video released by his team showing his opponent's mother dissing her daughter, calling her a liar, when it appears that the mom was not a good mother still defending her husband that molested the democrat candidate. She will now receive a sympathy vote as the video outrage, some of it faux, slaps Vivek silly. What a soap opera. Bye-bye Vivek. He wasted the last 2 years of his life kissing Ohio arse each day. Some democrats and democrat-run cable television outlets such as CNN are starting to have second thoughts about the polls and the potential for a blue wave tsunami that sweeps both the House and the Senate. They probably performed a similar exercise to Keystone above and added in 4 percentage-points for the republican candidates because polls do not seem able to properly account for this demographic. Analysts will be watching the results versus the polls as much as who wins.

Wednesday, October 21, 2026

Keybot the Quant Turns Bullish

Keystone's proprietary trading algorithm, Keybot the Quant, flips to the bull camp yesterday at SPX 7740. It is more sideways whipsaw slop. Copper, banks and volatility are all that matter. Copper and banks are creating bullishness while volatility is creating bearishness. Bulls need higher vol to prove up is the direction ahead while bears need weaker copper and banks to take back the stock market ball.

Keybot the Quant

Tuesday, October 20, 2026

DJT Donnie Trump Media Weekly Chart; DJT Crashes -97% in 5 Years Remaining -36% Below the IPO Price at a Record Low



Donnie Chump's DJT stock crashes -97%, from 175 to 6 bucks, over the last 5 years. Traders are throwing out the garbage. DJT stock remains -36% below the IPO price at a record low. Wow. Donnie has a new record. Do you think he will brag about this record? Don't hold your breath. Whoever was stupid enough to buy that garbage stock deserves what happened to them. Remember folks, Trump was not president for most of the chart above and was hands-on running his crumbling DJT empire into the ground. 

Trumpski will probably blame Zelensky for the collapse in the stock. King Donnie is supposed to be a business genius. If you ask him, he will tell you that. The above is business idiocy. It is a company ran by a moron. DJT stock is stupid garbage that reminds you of Stupid Girl by Garbage. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Saturday, October 17, 2026

SPX S&P 500 Monthly Chart; Historic Stock Market Top At Hand; Watch the MACD to Confirm the Neggie D and End to the 4-Year Bull Rally


Have you been performing your homework and watching the MACD on the SPX monthly chart to call the historic top in the US stock market? She's there. However, there are 9 trading days remaining in the month before it is cast in concrete and the November candlestick begins.

All the chart indicators are in negative divergence, neggie d, so a spankdown is needed that means stocks will roll over lower and begin a multi-month, if not a year or two, or more, of downside ahead. If you are new to trading or a young person, stay away from the stock market for a year or two. The smart money is sloughing off shares to the dumb money now. You do not want to be a bagholding sucka, do you?

The blue circle highlights the MACD finally sloping a hair lower (neggie d). This will lock-in the top for stocks on the monthly basis going forward. Now there are 9 days remaining in October trading and as long as the MACD finishes the month sloping down like above, turn out the lights, it's ovah. Willie is ready to sing The Party Is Over.

It is quite a sight. What a bloated piece of garbage it is. This 4-year rally that started in October of 2022 is based on the AI hype story similar to all the hype around tech and the internet in the late 90's into the dotcom bubble.

The RSI and stochastics are overbot and agreeable to a pullback going forward. The ADX says the rally higher is NOT a strong trend higher. The last strong trend higher was in 2018 (pink box). The Aroon shows that on a long-term multi-month basis, every single bull on Wall Street believes stocks will go up forever. The red line down in oversold territory shows that there are no bears remaining. The majority of the bears also believe stocks will go up forever. This is the behavior you would expect at a historic top.

The circles for volume show the smart money sloughing off shares to the dumb money (you). They appear on television each day telling you to buy, buy, buy, distributing their shares to you the sucker, as they sneak out the back door. The smart money has been ditching stocks the whole year long. Are you the sucka that has been buying?

Note the distribution occurring in late 2024 and early 2025. After that downdraft worked through the system, stocks started to rally to beat the band again on more AI and semiconductor hype. Note that the institutions were buying most of last year (all green volume candlesticks). Not so this year. Same thing happens with the drawdown in February/March but after that the smart money is actually accelerating their distribution. Step right up sucka, right this way, there ya go, step into that tent where you will be fleeced.

Just think, a year from now, people will be complaining that their $1,000 Trump accounts are only worth $700 or $800 bucks. People will be demanding, 'hey Donnie, can you put in 200 more to get us back to even?' 

It is a historic top. It will be fun. People will panic and run around with their hair on fire. We still have time for an October crash. Maybe a Black Monday? Tuesday? There may be military action in the Middle East War this weekend that may not make for happy folks come Monday. Keep your ears open Sunday afternoon to see if King Donnie starts jawboning to try and manipulate the futures markets that open at 6 PM EST.

Watch that MACD like a hawk. As stocks tumble lower on the monthly basis going forward, there are two key levels of support below. The 10-month MA at 7312 is a flashing yellow light telling you to turn back before its too late. The 12-mth MA at 7234 means all hope is lost and there is nothing but carnage and a bear market ahead for the long-term. Don't forget to put roses on the stock market grave. Dead Flowers by The Stones. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 10/21/26: The drama continues with the bulls managing to push the MACD line a hair higher. They want to delay the historic top but all they are buying is days or a few weeks if that. There are 7 days remaining in October. Bears need to lock-in the neggie d for the MACD to confirm the historic top and begin the downfall in equities that will last many months if not a few years. If the bulls manage to keep the MACD the tiny hair higher to end the month on Friday, 10/30/26, no biggie, simply watch the new candlestick start for November on 11/2/26, the day before mid-term elections, and as long as price is at matching highs to October or higher, and the MACD finally gives up the ghost and slopes down, the top would be in during the first few days of November. Simply watch the charts for the timing. You are witnessing a historic stock market top call in real-time. Wait until you see the whites of their eyes (MACD going neggie d on the SPX monthly) to unequivocally confirm the top on the long-term basis.

Note Added Thursday, 10/22/26: Whoopsies daisies. The MACD line slopes down again so if the bears can hold on for 6 more days, the historic top will be cast in concrete. The NDX, the Nazzy 100, crashes nearly 900 points today, nearly -3%, in a mini-crash.

GTX Commodities Index Monthly Chart; Runaway Goods Inflation (Trumpflation) Occurs Due to Donnie's Middle East War with Fed Rate Decision on 10/28/26 and US Mid-Term Elections on 11/3/26

The Fed and Chairman Warsh have one heck of a rate decision to make in 11 days on Wednesday, 10/28/26. Will it be a trick or treat? It is the time of year for the Halloween anthem the Monster Mash everyone's fave. As the bridge says, everyone is having fun, the party has just begun. A kid asked Keystone the other day to take his mask off because it was too scary and ugly but he was not wearing one.

The chart illustrates how tough the decision will be. Everyone and his bro, including the Uber driver, shoeshine boy and doorman, say the Fed will stay on hold for the meeting next week and then hike at the December meeting. There is only a 20% to 30% chance of a hike on 10/28/26.

Think about that with the backdrop of runaway inflation, or Trumpflation, in the chart above. High oil prices are destroying the economy and people's lives as King Donnie now lets his Iran War fester into a Middle East War. If he does not get his act together, he will be looking at WW III.

The GTX and CRB are commodity charts that represent oil, wheat, beef, many items are a gauge of goods inflation. The goods inflation will ripple into services inflation. Also, the impact of ongoing tariffs and the Middle East War will be felt harder going forward

But therein lies the rub. The Federal Reserve does not want to hike, say, next week and then in December, only to see the US economy go off a cliff because they will need to then lower rates to stimulate the economy and any hikes will be looked at as errors. That is what they are paid the big bucks for. They will roll the dice or throw a dart and sometimes they are right and sometimes not.

The chart shows how all the easy money during the pandemic (Fed money printing and Congressional largess handing out checks telling people to stay home and watch television) caused runaway inflation. The mess started to settle down but Trump's tariffs created more inflation and people saw it as everyday goods went up a few pennies or more on each item they buy.

Then Trumpski decides to start a war in Iran and the Middle East perhaps encouraged by his best buddy Dictator Putin. What a mess. Now the orange head blames Zelensky and Ukraine for the terrible Trumpflation occurring going so far as to screw them militarily to give Russia an advantage; and Musk is tied up in this nefarious activity with Trump since it is centered around the satellites. Musk is an unelected bureaucrat impacting world wars. It is enough to make you vomit. 

Do not look for relief with prices anytime soon. It looks like things may get a lot worse going forward. Again, it makes the Fed rate decision difficult. Trump will go ballistic with a hike next week in front of the 11/3/26 mid-term elections only 6 days later. Warsh does not want the Federal Reserve to be viewed as political but is it political to hike or is it political to not hike? Will Warsh follow his instincts from 20 years ago when he was a hawk, and perhaps go ahead with the rate hike and face the wrath of Donnie, or, hold off next week, selling his soul, proving he is in the back pocket of the president, only to see inflation sky rocket in the days and weeks ahead?

If Warsh hikes to tame inflation, what happens if the goods inflation takes a sudden serious downturn? Perhaps the Middle East War resolves. Warsh also does not want to push the economy into recession by raising rates. He is balancing on a tight rope while all these factors are throwing eggs. If Warsh does not hike, that means the Fed is seeing some real ugly stuff coming down the pike fast (economic recession).

It is probably best to hike next week and Warsh can take his lumps with Trump. That way, you can sit back and study the data into the end of the year to prepare for the December meeting. The options appear better going forward instead of holding next week and creating a mess with potential out of control inflation.

The stock market, however, is not ready for a hike next week. Equities would likely tank on the news. Warsh will have both Donnie and the stock market cursing him, but at least Kevin would keep his soul. It is good to be a Soul Man. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Thursday, October 15, 2026

LULU Lululemon Weekly Chart; Falling Wedge; Oversold; Positive Divergence



Poor LULU has been beaten to a pulp. Such a sweet thing that now lies in a puddle of dumpster juice in the alleyway behind the bar. Lululemon has been ridden hard and put away wet. There are competitors to the LULU leggings nowadays so they have lost market share. Ladies are buying some of their needs at the dollar store these days instead of going with the expensive Lululemon name brand.

But the holidays and Christmas are coming and the women are going to want presents under that tree. For the men, are you going to give her a pair of cheap dollar store leggings or are you going to spend the dough and get the Lululemon items since it is a judgement on how much you care about her? Yes, relationships are complex. Ladies want to feel special with the name brand. Sales should pick up for the holidays and the stock can not get beaten down much further, or can it?

To raise sales, maybe they should bring back those see-thru leggings. The men sure appreciated all the free shows at the grocery store and post office. Whoops, I am an old man that dropped his pen on the post office floor and it is difficult to bend over with my sciatica. Oh, thank you miss, oh, wow, my heavens, thank you very much. Whoops, I dropped it again.

Anyhoo, the chart is in positive divergence and expected to pop. The falling wedge is a bullish pattern. The RSI and stochastics are oversold agreeable to a recovery. Keystone bot it long at 96 at the open. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 7:20 PM EST: LULU pops to 99.09. She has been below the key 103.60 where an island formed below during September and October. Price may want to come up to this 103.60 level to take a look. The gap at 104-119 is big enough to drive a Peterbilt through it so it will need filled some day. Watch it for a few days to make sure the positive divergence launch remains in play. It would be a perfect time for the company to announce good news to kick the possie d in stronger. Perhaps LULU is rising from the ashes.

Note Added Saturday, 10/17/26: LULU stretches her way higher to a hundo this week but ends the week at 97.10 sitting on the 20-day MA at 96.96. It is time to bounce or die. A bounce will make the 97 hold as support going forward.

Note Added Thursday, 10/22/26: Wheee! Whoopie! LULU pops above 104. Lookin' good ladies. Keep on exercising. Lulu, you're looking good stretching higher in your tight leggings.

AAPL Apple 2-Hour, Daily and Weekly Charts; Negative Divergence Top





Wait for it.... not yet .... wait ... hey, Keystone is going to short AAPL, ... it must be in the charts... let's get in on the action .....  not yet .... almost .... wait for it ..... wait ........NOW!  SELL AAPL 347! Sell, Mortimer, sell!

He is shorting Apple? How dare he? That is blasphemy! Everybody and his bro and all the investment houses own boatloads of AAPL stock. Keystone must be delusional. No, he is not. It is simple neggie d. The rising wedges are ugly, too.

The Apple 2-hour, daily and weekly charts are in negative divergence across all indicators not a small feat. Price needs a neggie d spankdown in all these time frames. If you are sitting on a lot of profits, Take the Money and Run as Steve and the band sing.

Keystone is short from 347 so we'll see how it goes. It will be tossed back if the hype about Apple's products continue. The lates Apple offerings look like a bunch of rewarmed pizza. The latest Apple video is mocked on social internet. It shows an annoying a-hole family, that is supposed to represent Americans, using their products. It is nauseating. If your family is like that, they suck. It is hard to find the video since Apple must be taking it down. Apple commercial. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 7:40 PM EST: AAPL sinks to 342. The 2-hour chart indicators remain weak and bleak so lower lows in price are desired. Watch it for a few days to make sure the neggie d spankdown kicks in. Apple is cooked technically for many weeks to come. The only thing that can save it is happy talk but CEO Ternusaround just had a bunch of happy talk this week that provided the record high. Conversely, any negative news will kick the neggie d in with vengeance. Apple in retreat will be a very big deal for the stock market not only because of its heavy weighting but also a psychological factor. As AAPL stock moves lower through the multi-week pullback, confidence may be lost in the entire market as the bellwether collapses. The Apple Festival (harvest season festival) was last week and we made apple cider. A first target lower will likely be the 20-day MA at 337. All the leaves are turning colors in the beautiful Laurel Highlands of southwestern Pennsylvania. California Dreamin'.

Note Added Saturday, 10/17/26: Sapple announces that the Duo is flying off the shelves and deliveries are now delayed into January. Is it an honest comment or a marketing ploy to pump up interest in the Do Over foldable Apple phone? Keystone can provide a product and only make a dozen of them and proclaim the entire stock sold out in only a few hours. Come on folks, grab one while you can, they will not last. Meanwhile, Keystone has boxes and boxes in a stashed inventory ready to sell at an even higher elevated price. Apple enthusiasts may have wanted the foldable phone for Christmas but that may not happen, unless they pull the hidden inventory from the shadows. Hey, look everyone, we just found boxes and boxes of foldable phones in the back of the warehouse just in time for Christmas. With all the hype, AAPL finishes the week at the 343 palindrome. Apple may meet The Maker next week. Gird your loins if you are holding Sapple stock.

Note Added Thursday, 10/22/26: As many tech stocks sell off, traders still favor Apple and are all bulled-up about the pending release of the Duo. AAPL prints a new all-time record high at 348.22 pennies above the highs from a few days ago. Traders likely want to wait and see how long the lines are outside the Sapple stores to judge the excitement for Duo.

COPPER Weekly Chart; Overbot; Rising Wedge; Negative Divergence



For decades, the biggest users of copper were housing (plumbing) and automobiles (electrical motors and wiring). When Doctor Copper was sick, the economy and markets would catch pneumonia. An ole Wall Street adage is "every boom has a copper roof" or "a solid market is built on a copper roof." There are many variations. This has not changed. King Copper always rules the roost and in the present day, copper is serving as a proxy for the build-out of the artificial intelligence (AI) boom.

As a rule of thumb, when copper is sick, so is the stock market and the economy. All three lie in bed together. AI has been around for 4 years already. Time flies when you are having fun. Where's that cure for cancer? AI was supposed to cure cancer. Does it need another 4 years or will we hear any day that cancer is cured? It sounds like stupid talk like 15 years ago when idiots said everyone would own and be driven around in an autonomous car by now. These are fleece sweater wearing tech people talking their book.

Isn't it interesting that all these smart people spew about AI all day long and no one is able to provide short simple explanations of AI and what it is doing to save companies money? Maybe nothing. Maybe it is costing them money. If your company is running efficiently with its current enterprise system that controls the flow of work through the facility, why would you be an idiot and disrupt all that, and take on all those costs and hassles, to squeeze out small amounts of productivity? It would be CEO malfeasance.

Copper is a great proxy for AI and the data centers. AI has handed the US stock market big gains over the last 4 years; it saved the stock market from giving up the ghost providing a 4-year reprieve to the bloated balloon. You can see in the chart, copper followed a nice uptrend channel and then for the last 2 years, copper catapults higher on the glory of AI and data center construction for as far as the eye can see.

However, price moves higher into the rising wedge pattern never a good sign. The collapses from rising wedges can be quite dramatic. Price is squeezed-in by the tight standard deviation lines so a big move is on tap. Tight bands do not predict direction but the assumption is down and it may be a biggie over the coming weeks.

Price makes higher highs but the chart indicators are all in negative divergence (red lines). RSI and stochastics are coming off overbot levels. Copper should receive and begin a multi-week neggie d spankdown. The chart is beautiful during the last 4 years, but ugly from here forward; that sounds like people's relationships. The ADX pink box shows that copper was/is in a strong uptrend but is just about to fall below 26-28 indicating that the strong trend higher has petered out and is no longer in place.

The Aroon is what you would expect at an important top. The green line is overbot so all the copper bulls believe copper will go up forever. Comically, the red line is oversold showing that there are no copper bulls remaining. They have all left town and are now bullish on copper as well. The copper boat is fully loaded to the bull side with everyone partying long into the night but no one realizes the waterfalls are quickly approaching.

Keystone is not playing copper or its derivatives long or short currently but obviously, short is the path forward for copper on the weekly basis. It never ends well if someone starts poking around Copperhead Road. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Wednesday, October 14, 2026

JNJ Johnson and Johnson Weekly Chart; Ongoing Multi-Week Negative Divergence Spankdown



Some folks were thinking about going long Johnny John. Don't do that. Go to the john instead and save your money. JNJ bulls have to be happy doubling their money in a year but the glaring rising wedge, negative divergence across all indicators, overbot conditions, and upper band violation, said that down and the start of a multi-week slap down was on tap, and it occurs. The RSI and stochastics fall into bear territory sub 50%.

Price is hesitating at the 20-wk MA at 257 deciding which side it likes. The chart indicators remain weak and bleak wanting lower lows in price on the weekly basis going forward. You want to wait until the downside plays out and positive divergence sets up on the weekly chart to go long. It may take a month or so.

If you bring up the daily chart, you can see it is set up and setting up with positive divergence and she pops a couple percent off the possie d launchpad today. There is likely a few-day or week or two relief rally on tap, say up to the 20 and 50-day moving averages at 262-264.

But price will then roll over lower again because the above chart, on the weekly basis, remains weak and bleak. Trading is like playing multi-dimensional chess only time is the dimension not space. The daily chart wants to see some up but the weekly chart says down is the path forward. The 220-235 area may be the landing zone for a few weeks from now after the multi-week neggie d spankdown plays out.

Keystone is not playing JNJ long or short currently. If you are nimble, you can play long for a few days but do not stick around. Obviously, the easier play is short and hang tight for a few weeks letting the chart above play out, then you can flip the position long if the weekly chart indicators display positive divergence. Johnny John, we hardly knew ye. Johnny B Goode with the girls playing. Orianthi on the right is one of the best female guitarists in the world and known for playing with Michael Jackson; she's an Aussie girl that cannot put a guitar down. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Thursday Evening, 10/15/26: JNJ pops to 262 then promptly falls on its sword collapsing to 253. That is quite a round trip. Johnny John is dizzy and fell cutting his lip but fortunately, there are plenty of J&J Band-Aids around.

Note Added Thursday, 10/22/26: JNJ receives a reprieve bouncing to 267. Johnny John is enjoying upside due to the big rally in consumer staples.

Keybot the Quant Turns Bearish

Keystone's trading robot, Keybot the Quant, flips short today at SPX 7732 so the choppy drama continues. Retail stocks, copper and volatility are running the show. All 3 are bearish creating stock market negativity.

Wednesday, October 7, 2026

AMD Advanced Micro Devices Daily and Weekly Charts; Negative Divergence; Price Extended



Oh AMD, we hardly knew ye. AMD is a hot darling of the stock market right now sashaying her semiconductor body all around the trading floor sending equities to the moon. AMD, MU, NVDA, AAPL and MSFT are the AI and stock market leaders in recent weeks. NVDA, AAPL and MSFT, only 3 stocks, ridiculously account for one-fifth of the stock market.

Is anyone using that jackass AI to SI nomenclature change that King Donnie Chumpski proclaimed? Stupid and idiotic. Trump is jealous of Al Gore that invented the internet so Donnie wants to be known for inventing AI, er SI.

You have AI, artificial intelligence, AGI, artificial general intelligence, and ASI, artificial super intelligence. These three happen in order. Right now, we are starting into, and into, AGI. All the doomsday stuff you hear about AI is in reference to ASI when all the computer systems in the country and world are tied together and smarter than man. That is not now. That time in the future, from one to 10 years forward, is when a catastrophic outcome may occur for the 8 billion souls on Earth so 'let not your hearts be troubled'. The orange-headed idiot succeeds once again at creating confusion now infusing his jackass SI into the AI, AGI and ASI standard industry nomenclature.

The other reason Trump's AI to SI change is stupid is because it removes the word artificial. You do not want to do this. It must always be known that the intelligence is artificial and machine-driven via large language models (LLM) and regenerative code and it is not equatable to human intelligence. The jackass SI nomenclature removes the artificial inference. You do not want to do that.

Everyone is too caught up in the AI hype throwing billions at promises. It is like Wimpy asking, "I'll gladly pay you Tuesday for a hamburger today." Emperor Jensen, Lord Dario, King Altman, Prince Nadella, Emperor Ternusaround, His Majesty Musk, and the whole Hee-Haw gang, are Wimpy asking for billions, even some trillions if you got them, today, for AGI and ASI tomorrow. As they say in the Bronx, "Good luck wit dat."

Anyhoo, AMD is cooked with all the chart indicators for both the daily and weekly time frames in negative divergence. That is a stock you do not want to own for the coming weeks. The current hype and bullish euphoria can carry on for a few days or week or so but the expectation will be for a neggie d spankdown in both the daily and weekly time frames to begin anytime. It will be the start of a multi-week drawdown in AMD.

The weekly chart is extended above its moving average ribbon (price above the 20-wk MA, above the 50 above the 200) so a mean reversion lower is desperately needed in the weekly time frame. Look at the lower volume in recent weeks on the weekly chart. For all the hype and bullish euphoria for AMD, why are only the bagholding suckers buying the stock? Because the smart money is sneaking out the back door while they tell everyone on television that AMD is the best thing since sliced bread. Pump and dump, baby.

The daily chart shows a doji candlestick for yesterday that can indicate a change in trend at hand. If you are in AMD long, it is time to exit stage right unless you want to ride it lower for several weeks forward. If you have juicy profits, scale yourself out. You can sell a third today, sell a third next week, and then sell the final third the week or so after that. By then, she would be expected to be rolling over and heading lower.

Keystone is not in AMD long or short right now but obviously, short is the play going forward on the daily and weekly time frames. Keystone has started to short the semiconductor sector starting yesterday. Donnie Trump was campaigning down at Choctaw Ridge the other day but he did not mention that Billie Jo MacAllister jumped off the Tallahatchie Bridge. Bobbie Gentry. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Friday Morning, 10/9/26, at 6:43 AM EST: AMD is hit -4% yesterday. King Donnie throws a temper tantrum and proclaims that anyone that does not use his new SI instead of AI term is "the enemy," and the twit places the words in caps in his tweet signifying that he is yelling. What a child. The orange-headed idiot moans about his new stupid SI term that everyone ignores while at the same time he names an "AI Czar." You cannot make the stuff up. Pure idiocy. Do you notice that Trump just does not have the gravitas he used to? He is looking more and more like a confused old man nowadays. Young folks on social media are now proclaiming, "I am the enemy."

Note Added Wednesday Evening, 10/14/26, at 5:21 PM EST: AMD collapses from 659 to 567 now at 570 a -14% drop in the last 6 days. That will leave a mark. The AMD neggie d spankdown begins and the multi-week down move is underway. The daily chart may bounce in a few days, simply watch for possie d to call the bottom, but that will be a short-lived relief rally for a few days or week or two, then roll over again to the downside to resume the multi-week smackdown. The SOX drops from 13350 to 11640 now at 11684 a -13% drop in 6 days. SSG, the 2x inverse ETF runs higher from 9.45 to 11.76 a +24% gain in 7 days. That is tasty. Keystone can eat hamburgers and French fries tonight instead of franks and beans. The chips are getting pummeled.

Tuesday, October 6, 2026

Keybot the Quant Turns Bullish

The Keystone Speculator's trading robot, Keybot the Quant, flips to the long side yesterday at SPX 7766. The sideways choppy slop is relentless. Copper and volatility are running the show. Both are bullish creating the lift in equities along with oil prices relaxing lower. Watch CPER 39.63 and VIX 16.24 as the bull/bear lines in the sand. Do not be surprised if the quant whipsaws back to the short side in a day or two. Sideways choppy slop chews up bulls and bears alike.

Keybot the Quant

Saturday, October 3, 2026

CPCE CBOE Put/Call Ratio Daily Chart; Put/Call Ratio at 5-Year Low Signaling Rampant Complacency, Bullish Euphoria and Fearlessness; Sell, Mortimer, Sell



The CPCE CBOE Options Equity Put.Call Ratio dropped below 0.4 signaling rampant complacency, bullish euphoria and fearlessness in the US stock market. No one believes that stocks will ever go down again. The bears have all left town. There are only very bullish and euphorically bullish bulls remaining. Sure, that should work out well (said cynically).

The put/call ratio is the lowest since late 2021 when the stock market topped out. The SPX then crashed -25% over the next 10 months. The put/calls then spiked higher in Q4 of 2022 signaling rampant panic and fear so that was the perfect time to buy stocks. People's hair is on fire and they will do anything to get out of the stock market. A high put/call ratio signals that people never want to own stocks again as long as they live so you will be glad to take their shares off their worried hands.

John Doe, Sammy Sixpack, Savita Sucka and Bonita Bagholder are buying with both fists right now caught up in the AI and semiconductor hype. The guys and gals on television tell you to buy, buy, buy, because they are unloading their shares at the top locking in their juicy profits; they need bagholders so they pump and dump.

That is the purpose of that Trump account nonsense putting in $1000 for a child and telling them they will be a millionaire out of high school. It is silliness. What will these folks, now numbering in the millions, say when their Trump account is worth only $800 bucks a year from now? However, the wealthy class would have gotten theirs and then they will tell you not to forget that you are an investor for the long term (they weren't). Don't you love crony capitalism filth? It is a disgrace that the US government and corrupt investment houses tout the Trump accounts and not one single person ever said that "past performance does not guarantee future results." Instead, they provide fuzzy math promising vast riches every year forward forever. They are corrupt thieves always implementing policies that allow the backroom grift.

Applying the -25% to the SPX at 7723, that would be a drop of 1931 points, and a landing spot of 5792 by summertime if this 2022 fractal plays out again. The US stock market has rallied for the last 4 years with the AI hype carrying most of the load reminiscent of the dotcom bubble. Plan accordingly.

If you are new to stock trading and proud of yourself for making a little bit of money, get yourself out before you get hurt. Ditch your longs and let the money sit in your brokerage account in cash for the next few months. It is dusk now, and the sharks are starting to swim in the darkened waters anxious to begin feeding. Do you want to keep swimming? Sell, Mortimer, Sell. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Thursday, October 1, 2026

Keybot the Quant Turns Bearish

Keystone's trading robot, Keybot the Quant, flips to the short side at SPX 7653. Copper and volatility are creating negativity in the stock market while the NYA index creates positivity. One or more of these metrics will flinch and expose the path forward. The US Monthly Jobs Report is at 8:30 AM EST so everything is noise until the BLS brings the numbers down from On High and tells traders how to trade.

Keybot the Quant