The Technical Rotation Continues

What we have discussed over the past few weeks continues. The overall cash available to push around markets has plateaued. Money has been moving around for no fundamental reason. There has been no reason for Tech stocks to rally over the past couple of weeks, it was just the herd moved money into them. Now we see Tech running out of gas, and a bit of confusion of where to send money next. Today it seems that some money is moving towards infrastructure and main street retail.

Two Canaries in the Tech coal mine.

I am watching these two names as indicators of a next move. Apple and Tesla. They have had a bounce recently but are sitting on Air.

The CNBC Half Time guru’s illustrate the phenomena we are seeing, they admit that they are amazed at the money they have made over the last year, obviously not due to analysis or fundamentals. but more interesting is what they are doing now, selling out their winners and buying other stuff, no one going to CASH. Therein lies the seeds of the CRASH.

What do I think they are missing? Probably the DOLLAR.

Here are the APPL and TSLA Index charts (keyed to February 24, 2021 prices). It is interesting that these charts based on weekly data show the bigger patterns that are identical, Left Shoulder on Week of August 31, 2020, High on week of January 25, 2021, and Right Shoulder this week, June 28, 2021. The vertical yellow line is the February 24, 2021 Flip Date. The red dashed line is the average index since that date.

Today’s Big Picture Chart

The composite Asset Chart continues to show the formation of the double top, April 16 and May 10 and the right shoulder being completed. Be ready.