We told you Wednesday, after some suspicious action, that our leaders page did nothing more than get hit down to the 50 day/10 week moving average. This is a place where the boys come to defend or take a powder. Yesterday, a couple of hours in, they defended and this morning, a decent sized gap to the upside as a declining Asia and Europe rally nicely. Why? No clue. We just know that from our studies of hundreds of thousands of charts throughout the years, this area is where it is fish or cut bait. With it being December, markets decided to shrug things off and turn up. After all, the pull back here was again minor.

We always say we can tell by how things bounce/rally after a drop. We now know. Notice the DAX turning up, always important. As far as the SOX, still lots of work to do but notice recent breaks to the upside on TRANSPORTS, FINANCIALS and some RETAIL…look pretty darn good.


Just letting you know a bunch of growth leaders have recently been hammered on volume. But many were so extended, all they have done is fall down to their respective 50 day/10 week moving averages. It is this are that will be vital to hold. We will know more on any bounce, how they bounce, if the bounce is anemic and if they roll over breaking the 50 day. It is too early to tell. A few are green today off this line of support but tepidly so. There are a few just below this area and will need to see if they get back above. It is December, a month which usually has a positive tone.


Futures only down a wee bit but lots of jello moving on the plate.

Yesterday, NASDAQ up 60, finishes down. Need we say more…just more distribution. Again, does not have to mean the end of the world, Just recognize things have changed in that space. This includes semis/tech/internet and all that stuff. Seeing some pretty good looking tops…for now. Remember what we said. The SOX on 11/29 looks like June 9th. At that time, it took 3 months to get going again. But this time it is farther along. Time will tell…pay attention.

Also of note:

HANG SENG whacked over night giving back all gains from past months. The Japan Nikkei also looks toppy in here.

As far as the areas jammed to the upside recently like TRANSPORTS, RETAIL, FINANCIALS…watching how and where they pull back to as all broke out on volume.

Hey Pelosi, who’s creating Armageddon?

-By Gary Kaltbaum- December 5, 2017-
-Sorry! I kinda sorta already reported on this nonsense but then Nancy Pelosi decided to open her mouth.-
-ARMAGEDDON: “the site or time of a final and conclusive battle between the forces of good and evil.”-
-Nancy Pelosi, a woman who very much is ground zero for why we are now at over $20 trillion of debt is calling this measly tax cut “armageddon.”-
-HYPERBOLE: “an extreme exaggeration used to make a point.”-
-Nancy Pelosi is saying a tax cut, at most of $1.5 trillion over 10 years is armageddon, saying this tax cut is about life or death but:-
-Over those 10 years, federal government tax receipts are estimated to be, depending on which abacus you use, $45 trillion give or take. So this horror of a tax cut would represent  between 3-4% of what they would have received.-
-Over those 10 years, the federal government is estimated to spend approximately $55 trillion give or take.- 
-Nancy Pelosi, or for that matter, anyone else on the right or the left, say nothing about that additional $10 trillion being spent over and above what they take in (more debt and deficits)…but they whine about the tax cuts (our money) adding to the debt.-
-Because of the debt they have all created throughout the years, in those next 10 years, the taxpayer will spend approximately $5.5-6 trillion of their hard earned dollars just to pay the interest on that debt they created. That’s $5.5-6 trillion dollars that go towards nothing. Not to roads, bridges, streets, the poor, homeless, children, healthcare…NOTHING! All that money goes down the toilet because of the debt Pelosi and the rest created throughout the years. In other words, the tax cut would SUPPOSEDLY cost $150 billion each year but the debt they created is going to DEFINITELY cost over $500 billion each year just to pay all that interest. By the way, these numbers do not include these numbers skyrocketing if interest rates start backing up.- 
-We are waiting for one person in the national media to bring up these simple facts to Pelosi and the rest. Just one. Nope…in fact, they are back to their template…calling it a gift to the rich, kicking the poor while they are down, taking food off of children’s tables. I have been hearing these same words since I was a Bar Mitzvah. They are lies and they are nauseating. The blob we call government is getting more blobbish. It has become an entity of massive debts and deficits. It is an entity of no accountability. It is an entity that has become so bad and so disrespectful of our tax dollars that they would use our tax dollars to pay off sexual harassment claims in secret. –
-ARMAGEDDON: “the site or time of a final and conclusive battle between the forces of good and evil.”-
-Sorry Nancy, in this play, the good are the people who work their arses off to fund the blob you created. The evil IS the blob you created.  Nancy, if there is going to be an armageddon, it will be one on which you and the rest of your pals have created through the years. Yes…your pals on both sides of the aisle. –


More of the same this morning. DOW futures up 80…S&P only about 3 and NDX futures hardly up. NDX futures were down decently about an hour ago but have since bounced.

Reading many saying these divergences augur trouble to come. They could be right but we are not there yet. We would rather just stay in tune with what is and what isn’t. If what is joins in the downside, then we can talk. But so far, even with yesterday’s DOW reversal, FINANCIALS, TRANSPORTS, RETAIL, HOUSING-related still very strong off the tax bill…

BUT…them are some ugly patterns in big name growth/tech/semis and all that stuff. Keep in mind what we told you about the SEMIS. Look at June 9th for a possible precedent. Big ugly down day followed by 3 months of range-bound before breaking out again. Nov 29 down day looks about the same. We are not saying the same thing happens. We could have seen the final top. Just outlining possibilities. We always adhere with what is in front of us.