This blog post is a compilation of the great market information Andy posted today. This will be updated later to show Andy as author as well as other changes (like the title ;-)  )

1-This market is due for a pullback but refuses to go down? I have seen this twice (second time was called irrational exuberance). My slant. Most of the people saying ”this market’s going down” are not in it and ”want” to be. I noticed a few things that are ”huge” first the massive amount of money coming out of Bonds are being reallocated to ”stocks” second money in commodities are going into stocks (out of gold into stocks) third the Japanese move is ”desperation” if I ever saw one, again, Japanese investors want US assets (as do European investors). So the market? Corporate buybacks in 2012 totaled 385 billion 2013 could be higher (440 billion projected). Less supply add demand? That is my take on the market as I believe we are in the ”early” stages of a ”melt up”. Trade safe

2- Now that I posted a bit on my ”bullish” position I need to post some charts with ”clues” as to why I am bullish. First the TLT. The TLT chart shows allocation. All fund & institutional investors (rich guys & gals) have an allocation to stocks/bonds. Markets move (irrationally at times) when that allocation is shifted (say from a 60/40 mix to a 80/20 mix). The TLT is being ”sold”. Here is the chart with targets along with a chart of the ”dollar” which is causing much of the dislocation in bonds & commodities. This ”mix” change does not happen very often (once every 5 years or so). I do not track the dollar but the chart shows a multi-year breakout.

3- Now for commodities. For this I use the GDX it is an ETF of the miners which are tied to commodities (iron ore, copper, gold, silver etc). Money is flying out of these (they are a ”fear” trade) and into other assets. The solid dollar is causing this. For aggressive traders ”only”. If the GDX gaps down Monday it will cause an island continuation ”down” and should be traded with DUST (DUST returned 40% last week so this is ”not” for beginners). The island continuation and it’s significance can be seen on the TLT chart.

4- The banks are leading the market so a few charts of them with targets would be in order. With 45 billion a month being put on their balance sheets they should lead. I started with the BKX with a target (may be conservative) of 64-65. I showed the blue count which is ”wrong” and now realize I was trading a way to conservative count. When your wrong you must admit it and learn. I am so bullish on banks that I believe with wave 5 we could see 75 or greater (2007 high was 120). Some people use the XLF for banks so I will post a weekly of XLF. The first thing that jumps out is the RSI. When you see that level on a weekly I assure you ”any” correction will be bought. Eric will back me on that one.

5- Now for the overall market first the NYA (1,867 companies). Not at an all time high yet but a strong looking chart. I will post two SPX charts one daily one weekly. Presently I have a target of 1680-1690 (may be conservative).

6- Tech. I will post my ”favorite” chart. A monthly of SOX & an update on Apple. First the SOX. Rarely have I seen such a bullish chart as this one first the ”cup” then a ”bullish” wedge forming the handle (took 5 years to form). Now a breakout at 450. Next Apple. The 50% Fib at the gap will need to fill and ”develop” velocity to assault the neckline for the inverted head & shoulder to be viable. Any trade below 418 invalidates the pattern. Perhaps Tuesday after congressional hearing.

7- Today Ben Bernanke is giving a commensurate speech at a college next Wednesday he is in front of Congress (will be a market mover). Tuesday Tim Cook in front of Congress. Going to be a busy week in Washington and ”yes” a pull back can happen. Any pull back ”will” be bought. If you watch the TLT (money flow) you will be on the right side of the trade. As always. Trade safe