With new highs at 284, the bulls have provided more proof of being real ES_F 1823 x 1810

Featured Breadth Chart of the Day:


Friday we asked the bulls to push it to 90 and with 281 new highs on the NYSE they did just that.   Let’s look for a hold today.

Economic News:


The UK numbers remain strong, watch GDP numbers premarket today in the USA.

Quote of the Day:
Nature has given to us the seeds of knowledge, not knowledge itself.
–Lucius Annæus Seneca

Comments and Levels for the Front(S&P500 – Emini futures) contract:

Short: 1823
Long: 1810


Once again I find myself lost for a higher mark than 1823.  I will have to lean on my friends, but for today I will leave 1823 in place with 1810 to the downside.

On the MiM:


No ride on the MiM for me as we just didn’t have enough bias.  While the dollar size was impressive, it just wasn’t strong enough to trigger my signals.  It turns out that all three entry times would have given you a decent ride though.   Friday was a S&P restructuring day – that is when the percentage weights for each symbol in the S&P 500 are altered to keep the index in line.  That requires all those funds that track the S&P by keeping the same weight (Think SPY for instance) to adjust their basket of stocks to match the new index.

Fund managers know of the imbalance more than a week ahead of time, but there are always orders at the end of the day that need to be filled.  This type of “Index” rebalancing  day doesn’t necessarily lead to a directional move since there is usually an equal amount of buying and selling.  That is basically what we saw on the MiM on Friday.

That is much different than the equity/bond balancing that will happen next week.

We are in the process of putting up an new video that John Monaco, our partner on the NYSE floor, did about the MiM.  It is excellent.  You can view it by going here: 


if you have streaming issues please let me know.  info@mrtopstep.com



Date Of Signal Direction x:00 Entry/Close x:20 Entry/Close x:30 Entry/Close
12/2/2013 Short 5.23 4.63 1.94
12/4/2013 Short -0.36 -0.17
12/5/2013* Short -1.51 0.11 0.33
12/6/2013* Short -0.76 -2.07 -2.24
12/11/2013 Short 4.71 2.62 1.85
12/13/2013 Short 1.76 -N/S- -N/S-
12/20/2013 Short -N/S- +0.53 -0.70
Total   9.40 5.46 1.01

* – NFP Day before and day of.

If you want to join the meter readers you can go to: Join the MiM

Comments about TLT (Twenty year Bond ETF):


This is where we thought TLT just might top out.  

  >>> You can follow me on Twitter  @redliontrader <<<<<

Breadth Charts in Full:

Zweig Breadth Thrust


Looking better for the bulls every day.

Cumulative Volume Index:


Still not a new high here, we would like to see them hurdle that one.

Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):


Nothing to say here.

New Highs / New Lows ratio chart :


Bulls in the 90s, nice.  


Short Term Trender –  McClellan Summation Index:



Long Term Trender –  Cumulative 4-week Highs – Lows (the fat lady):



Parting Shot: 


Store and Banks behaving badly.   VisaMasterchargeAmexChaseAmazonTarget blah, blah, have gone into this Christmas season fully knowing that the network we use to checkout and transfer funds is full of holes.  The downside cost has always been contained by accepting the dollar liability and pushing the inconvenience piece back to you, the consumer.   While the Target hack was certainly a crime and we should drone attack those responsible, the inability to follow through and make it painless for those whose numbers were turned over while on their premises and using their networks is disturbing.

Chase says, we know who you are that shopped at target so therefore we are going to limit Chase’s liability by limiting your access to your account.   How about FEDXing new cards and accounts to your members?  How about taking care of them.  Big banks continue to treat their customers as an inconvenient way of getting access to funds.

The entire industry should be taken to task.  It is corrupt, corrupted and not secure and with just a little effort it could be so much better, and the entire industry should be providing consumers free full time access and watches and alerts to our credit information, after all it is ours isn’t it?


Thank you for Reading Your Guide To Financial Stability credit card reviews
Marlin aka RedlionTrader @redliontrader

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