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It's All One Big Stealth Rotation

For some reason, any whiff of market distribution is met with heightened fear.

That somehow, this is it. This is the big one.

And if you're only looking at domestic assets, that's what it feels like.

NDXDAILY

But while you're staring at the Nasdaq and Dow Jones, there's been a massive rally in other assets.

Stuff like emerging markets.

EEM

And China.

fxi

What does this mean?

Money is flowing out of domestic equities and into international equities. It's that simple.

What does this really mean?

As it stands right now, this isn't a global "risk off" kind of event.

And why should it be? The only major political risk (Ukraine) is cordoned off, and the tapering by the Federal Reserve is already obvious and potentially priced in.

From my view, this has just been one big time-based correction, in the context of a long-term uptrend. 

Unless the sellers regain some initiative, it won't be long until the uptrend reasserts itself.

by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/