I've been deluged with emails from folks telling me that the top is in and everything is going to start plunging again. While I genuinely appreciate the heartfelt sentiments – – – I know they are from true believers, and I know they are offered to make me feel better – – the grotesque fact of the matter is that the U.S. Government, whose principal drivers are colluding directly with their Wall Street buddies, has mortgaged the future of the country in order to bail out the zillionaires in Manhattan. This sounds like aluminum-hat-wearing type drivel, and I'm sorry that it does, but I truly believe this to be the case. Were it not for all of Bernanke's meddling, the meltdown would have continued in all its full glory. As it is now, the day of reckoning has been simply delayed.

The reasons offered for the imminent plunge range from the technical (well-constructed charts) to, with all due respect to the cycle types out there, the kooky ("there's a full moon this weekend!") But everything – – from gold, to oil, to commodities, to the big indexes, continues to march higher. And they will continue to do so until they stop. 

I see that a new record has been set for the sale of a art piece by a living artist. The masterpiece below was sold for $33.6 million. Just imagine – – if you were a wildly successful trader, you could afford such things too! The buyer, understandably, was anonymous.

I keep reading about how the bear market is over. My question is……WHAT bear market? Sure, there were times I thought we were actually getting into one, but the longest recent consistent stretch of a downturn began October 11, 2007 and ended January 22, 2008. About 70 trading days. Here it is, in all its glory……

Whoop-de-freakin'-do. That's the big, bad bear market people are relieved to have survived? Give me a break. The bull market barely missed a beat.

The uber-bull market, of course, is anything and everything to do with energy. OIH reached yet another lifetime high today, and I've come to the conclusion that in a market like this, the only way to make profits is to simply keep buying the stocks making new highs.

Now, don't get me wrong. I don't do this. I don't even think I can. And shame on me for not having the gumption, guts, or gonads to do so. But momentum stocks just aren't my style. But there's no doubt that this is where the cash is being made.

Finding new highs in ProphetCharts is simple enough. Just turn on the Chart Toppers module, and voila, there they are – – updated and live, every day.

There are dozens of charts that have exploded hundreds of percent higher over the past few years. Many of them are related to agriculture or energy. Here are just a few. It's easy with hindsight to drink in the wonderfulness of these charts. But doing it in real time is pretty tough…..

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Does one simply dive into these stocks? Some do. And they have, by and large, profited handsomely from doing so. The difficulty is figuring out when the music is going to stop playing. Was today the top for these stocks? Or is the top several years and many hundreds of percent away?

There are some stocks which are strong but have at least emerged from plausible breakout formations. It would easier for me to buy into one of these than one of the hockey sticks shown above. Here is a sampling……

The mistake I made – – – and over the past couple of months, I've made a boatload of them – – is assuming that the normal rules of the road apply. Just take a look at the chart of XLE below, for instance. A chartist might assume that the ascending trendline, drawn over the course of many years, would be a substantial level of resistance. But look what happened today…….blam! The line no longer has meaning, because prices are so exceptionally strong that they powered past it.

I have trimmed my positions way, way down and am preserving cash. I am extremely uncomfortable trading in a market like this. The markets in the first quarter of this year fit me like a glove. Lately it's been agonizingly awkward. The quality of this blog has suffered because of it, and for that I am sorry. But, unfortunately, I'm the author of this thing, so just like this little corner of the web benefits when the stars are lined up with my thinking, it suffers when they're not. That's just the way it is………in spite of another sad-sack post, I wish you all an enjoyable and relaxing weekend.

I know this is sacrilege, but it strikes me as verrrrrry unlikely that a stock that looks like this is destined to make new highs.

Looking closer, it seems the slow stochastic and RSI are both rolling over. I can't remember the last time I had a position on AAPL, but I'm buying puts here.

OK, I am replacing the snowman picture with one that is more interesting.

At the open, the IWM had a breakout above its Fibonacci level, but the breakout lasted 60 seconds or so. It's only 45 minutes into the trading day, but so far it looks like the potential for a failed breakout.

Hope springs eternal in the bearish breast, eh?