Is this it? or it is what it is? or is it?

Posted on Mar 05, 2013 by in Letters

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p16768279576&a=214966864

Don't celebrate yet.  Breakouts are always subject to confirmation.  But this certainly looks like the real thing, and we added on to our longs, taking the first of several tranches in the Dow (DDM, actually).  This should however shut up the incessant niggling about being in a secular bear market.  (Boring.)  Adding on, of course, is the classic pyramider's (or position builder's) dilemma.  The market with its hypersensitive nose knows that you have done it (notice the nose knowing) and punishes you.  The technical reason for this is that some traders are taking profits, and there is another school which delights in selling strength and especially breakouts.

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