Morning Charts 11/21/13 SPX /ES

This cought my eye while checking futures on CNBS app this morning, And we’re off: the ‘Great Rotation’ gets into gear.


Rotation? What? Oh yeah, they must mean the last stage of herding the muppet sheeple in for the slaughter.

"There has been some $231 billion worth of inflows into stock funds this year, the most since records began in 2002 and well above the previous record inflow of $69 billion in 2010, Bank of America Merrill Lynch (BofAML) said earlier this month"

That's what helped generate this - Three unprecedented overthrow situations and a march straight thru all time highs over and over again.

Daily SPX - The black vertical lines, I keep showing this for a reason. The third major overthrow.

It did not generate all of that, that ramp had some, just a little, influence from QE, the Fed, treasury, HFT algo bots, the CB's, the administration, the judicial system and a few other sources.
SPX Daily - Congratulations, this is the 12th consecutive negative divergence and numerous reversal candles that have been ignored by this market run. A purely natural occurrence.

From the above,

"Getting into year-end this [the Great Rotation] is always a good trade to play," said Vishnu Varathan, market economist, Mizuho Corp Bank. "Yellen is seen as a dove and that sets the stock markets up for a good rally,"  

So jump on in sheeple. Please, take everything you've got and go bottom fishing. That is where the best deals are. I mean there are some great deals out there. Cramer, who is almost always right, wants you to consider JCP here as a turnaround story. 

With the jobs situation (cough, couch) where it is, with the new healthcare initiative creating even more disposable income since it is not a tax (cough), and all the other glorious economic data (cough, cough) the economy is set up to run. Never mind the natons debt situation or even your own. You need to invest and now or you will miss the great run.

The bears have been waiting on the lemmings, and I believe this it proof they have arrived and that the cliff is just ahead, and man what a drop off it is on the other side.

Minis 60m - I told you 1777 and all that support was a key area. Falling yellow wedge into rising green wedge support while backtesting the upper long term market resistance diagonal. Shoulda called it as an STB point. Very contentious situation price is in here. I still think it should take an overnight gap down to crack that 77 area. If it does crack it, then 62, 52 and 48 are the numbers to watch.

More to come below.

Have a good day. 

GL and GB!