When I see the structure of this market, I'm reminded of a quotation.

"The greatest trick the Devil ever pulled was convincing the world he didn't exist."

 

The fact that the market "came from a higher price than it is today" is not really a catalyst for a bull market, and I believe that while this rally was epic, it is time to exit stocks and raise more cash again now that public sentiment is reaching another all time high again (everyone's now frothing at the mouth on TV talking about "the recovery" finally so it saturated the public consciousness and hence, I believe its priced in here).  But I ask you, who needs a bull market (or a recovery for that matter) if a bear market can jam upward 50% or more in 6 months?  People get too hung up on labels. 

 

This chart is Bob Prechter's Elliot Wave count. 

Let us revisit the sentiment indicator (and its correlation to makets that make peaks followed by declines or troughs followed by rallies (both to a substantial degree).  This is why sentiment is a contrarian indicator

 

ONE POSSIBLE FUTURE.

When it comes to either believing charts, or believing the "stories" told by the media about how my government is looking out for me, I'll take my charts any day.  My government claims to be benign and well-meaning, yet I don't think they will be able to stop a market collapse if public sentiment starts pointing in that direction after this rally.

 

Timmy is the Secretary of the Treasury.  He is watching you.