TRANSITIONING PERIOD?

AS investors or traders we must navigate these waters like we did or better than 2003-2007 period. I took myself out in 2000, and did not lose any long position during 2 Bear periods, but as we see, sometimes you must take what FED gives you, and if a good company gets cheap you buy it....that doesn't mean you won't sell it later....we have to make money in good times and bad, that is the difference between us and lets say strictly LTBH vlaue investors which someone churped to me about how good they are, BILL MILLER(Legg Mason Value Trust) was G-D too until the BEar markets showed he could get killed too.

There's nothing wrong with being bullish or bearish, just some periods you have to step aside if nothing less.

http://lowryresearch.com/ This has been my most trusted, respected sub for market data, I have recently let my sub lapse as it is very expensive.....but if we break down nuts and bolts of JUST MARKET ACTION, then we want to see accurate picture of supply and demand.

Here's what I can say, The market exhibits the stats of a bull market, and the early phases of buying has extended maybe twice as long as avg bull....there you can buy almost anything and make money.

But in phase 2 of 3, investors get much more picky and we have seen market breadth deteriorate over the last 30 days as it appears people are less willing to chase, and maybe more willing to sell....this could very well be just a short term phenom as we both know tops are usually made as all those on sidelines watching can;t resist anymore.....the very time the incrowd picks up their selling....AKA bagholders.

MANY argue rising, near historic SPX profits, they would be correct, however this is tainted with GAO END TO MARK TO MARKET replaced with fantasy earnings....

Bullishness at 2007 peak. VIX below 16, but until it changes to rising trend it is signalling complacency, not bear mkt.....the GROUNDWORK IS SET FOR A SERIOUS CORRECTION of at least 3-5% IMHO

RIGGED MKT.....rises almost every MOnday.....Business is still being done, but jobs are not plentiful, has their been a secular shift in hiring?

The INternet creates opportunity, but it also hurts local merchants and costs jobs, when will FREE RISE of NO TAX ON PURCHASES BE OVER?....how much revenue has gov't just given away?

BIG holes in what govt takes in and what goes out...TAXES WILL RISE.

Highest FUEL costs in history for FEB....this is another tax and eats up tax cut.

Strategic defaults by one measure add $90B a year in consmer spending.

SPX 400 MID CAPS AT ALL TIME NEW HIGHS....many not far behind.....when will FED TAKE FOOT OFF GAS? CPI manipulated here, so they do as they want.

SAVERS RAPED! A MILLION $'s gets you $100 of MM interest, who forgot SAVERS SPEND interest payments, they cannot do so now....RISK IS ONLY GAME....and that tells me RISK IS NOW IN EVERYTHING YOU CAN BUY....when the music ends in this PONZI MUSICAL CHAIR GAME....that could later than sooner, but it will come.....the rally isn't consistant with real life on the main street data I see and hear.

In conclusion the market is close to transitioning into the next phase of this bull market, and I suspect it will get narrower foucs and many will find it harder to make gains......

D