Weekend Wrap-Up, Still Trying to Get Bullish

I’m having writer’s block this weekend .  Usually when I can’t think of what to write it helps me to go over our portfolios so I started this morning reviewing the Buy List but I didn’t get far because it was silly.  Of 43 plays on the buy list, 39 are doing well - too well in fact to the point where it’s hard for me, in good conscience, not to say let’s kill the whole thing and get back to cash as we’re up about 20% in 2 months and that’s just ridiculous - most people would call that a good year and go on vacation .  The Buy List was 100% bullish and we did catch a good bottom on our early February entries.  I was gung ho bullish then because I felt comfortable that the 10,000 line on the Dow would prevail and that we were good for a run back to the top (10,700), following, more or less, the pattern we had in 2004 ( see original post for charts ).  Well that’s pretty much what’s happened since then but that’s not making me happy because I see no reason we won’t complete that pattern and begin falling off a cliff shortly. As you all know, I’m not a big fan of TA, or patterns for that matter but the reason I started looking for patterns was to try to get a handle on how long  market could really keep going up before falling victim to exhaustion.  To me it seemed we weren’t at that point on Feb 6th but now that we’ve put in that big push back up - if we can’t punch up to new highs on all our indexes then I do think it’s time for the markets to take a break.   Clearly I’ve been too bearish for the past couple of weeks and we are now 224 points over 10,400 on the Dow which is where I turned bearish as the January data made me lose faith in our ability to get back to 10,700.  I should have stuck to the TA because we’re a lot closer to 10,700 than we are to 10,400.  With the Russell and Nasdaq exploding to their own new highs.  You can see though, from the above chart, why I do want to wait to see the NYSE, Dow and S&P confirm this move up - it’s not far now! We’re finally getting the hang of the Wonderland Market though it’s actually quite simple…