The Great Rotation from a Technicians View

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The Great Rotation from a Technicians View

There is a big thesis going around this year that we are getting ready to embark on a massive shift of not just investor sentiment, but assets as well.  The argument is pretty simple, over the decade people have learned to hate stocks and love bonds.  All the while, the stock market has continued to march higher adding a little angst to that hatred.  I think personally think the argument has a lot of merit is likely to play out at some point, why not today?  Now, I understand there are many different fundamental arguments on both side of this discussion, and I am not here to argue or defend them all.  I am going to post the most important piece of evidence I can point to right now as a Market Technician, the charts of the companies that stand to benefit from this shift. As famed Technician John Murphy once said, “Today’s technicals become tomorrow’s fundamentals”  These are the broker, custodians, and fund companies. We all know the markets tend to discount things in advance, so what are these charts telling us?

1-27-2013 IAI

1-27-2013 STT

1-27-2013 BLK

1-27-2013 BLK 1-27-2013 SCHW

1-27-2013 CBOE

1-27-2013 GS

1-27-2013 BK

I have been trying to draw attention to this sector for the last few week’s without much explanation.  These are just a few examples of what is going on under the surface.  The set ups were and are good opportunities, but now that most of the Breakouts are continuing to surge higher it is time we start thinking of larger implications.  Even if we only see a very small percentage of assets move out of the ginormous bond market, the waves in the equity markets across the world could be epic.

Good Luck, it is there for the making!

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(All market data above are derived from, Esignal, and Reutersdatalink)
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About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.