The SPX chart shows the Keybot the Quant algorithm turns over the last year; the green bar is when the computer model triggered to go long and the red line is when the model flips to the short side. The blue channel lines highlight the choppy sideways action for the stock market this year that only serves to chew up bulls and bears alike. Right when the bears think they have the upper hand with markets dropping, the bulls come in and punch the bears in the face reversing stocks to the upside. When traders run into the long side thinking the fix is in for an upside party, the bears rush in and punch the bulls in the face dragging stocks lower. Rinse and repeat. The bulls will win big above 2130. Bears will win big under 2050-ish.
It is amazing that Keybot continues to weather the treacherous sideways storm this year with a +5.4% return thus far, however, the whipsaw choppiness may continue and can easily chew up any gains. Keybot flipped short on Thursday, 8/6/15, only to reverse course on Friday, 8/7/15, back to the upside as the respective red and green bars at the right margin show. The market theatrics continue. 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.
As always, more information concerning the stock market algorithm is found at Keybot's site;
Keybot the Quant
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