Even a Bomb Can't Stop the Bulls

Set aside all the dogma. All the points of view. All the rationale. It boils down to this simple fact:

The mentally-unstable leader of a country widely recognized as one of the most hazardous and threatening in the world successfully deployed a nuclear bomb.

And how did the market react? It went up to its highest point in human history (as measured by the Dow Jones Industrial Average).

Something is very wrong here. I can't explain it, and I certainly can't fight it. I'm sick of it, but that obviously matters not a whit. I haven't thrown in the bear towel yet, but it's definitely balled up in my right hand, and my right arm is extended behind my ear, ready to hurl it.

In the meantime, I've been scaling out of short/put positions (including indexes) and moving into long positions. I do this with some trepidation, especially considering how in relative terms the market seems so high these days. Take note of this Dow 30 chart (in spite of the Dow's pushing a bit above the upper resistance line):


One recent suggestion that did quite well was Express Scripts (ESRX) which has been falling nicely (I've circled the point where I suggested it as a short).


Google, mentioned last week as a long, is likewise prospering. I'd add to this "the market is insane!" notion the fact that they just spent $1.6 billion on a company which has never made a single penny of profit and is threatened on many sides with horrendous potential legal action.


US Steel, also mentioned as a long candidate (at the circled area) is also on the rise.


I don't have time for a long entry today, but I'll reiterate that BLUD looks sweet as a long. It had another good day today. This is a beautiful saucer pattern, folks.