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Tuesday, December 5, 2017

Market Update 12/5/2017 - Sector Rotation - NOT!

Last update I nailed Friday's dip, to within 7 points on the Dow, so I feel like I have a good handle on this market. We also saw the $VIX get above the 13 level, for an instant, before the market recovered, back above the 2630 level on the S&P.

Friday's chart: "Nailed it"

Yesterday the SPX popped higher, and by the end of the day had filled the gap. If you're not familiar with the technical market, term, "gap fill", try investopedia.

The clueless nitwhits at Bloomberg, were calling yesterday's action a "sector rotation", because the NASDAQ was down slightly? That's not a sector rotation. We're not seeing Tech sell off, and go somewhere else. We are seeing "bricks and mortar" (retail) rally, as I predicted last month, as retail continued to be heavily shorted, along with certain food chains like Buffalo Wild Wings up 50%, since I called it out. 

$BWLD - seen re-taking the 200 day, on heavy volume. So much for the bearish death cross... worthless indicator. 

We even see Macy's screaming to the upside, so there have been some good trades to be had...

$M - saw this rally coming a mile away, and there's nothing like a good short squeeze during the holidays.

LB, GAP, GME, all up big - to name a few, and those who make monthly donations to this website haven't missed a thing, believe me!

As far as the broader market, it's being held up - into the end of the year - so that money managers get their yearly bonuses, and as long as the $VIX remains below 12.50, that trend is going to continue.

I do think that once we see profits locked in for 2017, we're going to see a massive sell-off, either into primary wave 4 (in a bull market), or the Armageddon trade - similar to what we saw in 07-08, but much worse, and prolonged.

Financials have traded into what looks like Super Cycle wave "B", and a SC wave C is a very powerful thing. Financials are not leading, despite what the fake financial news networks report.
New highs mean nothing, in a bearish pattern.


That's all I have time for today.

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