Mkt update and Model 10 review

Another low volume, lethargic squeeze higher in the indicees this week.  It is apparent that the shorts continue to get squeezed and reluctantly are getting turned into bulls week by week.  I suspect that we may have another few weeks of this where I see the SnP pushing up to 1430-40 level.  Based on individual chart patterns of the S&P 100, Dow 30, Nasdaq 100 and many of the Mid-cap 40o which I chart we are setting up for 2 very real possibilities.  The first scenario (my favored at the moment), is to see individual charts to continue to show nice breakouts into higher trading ranges while many broken stocks rally smack into resistance (breakdown) levels to complete their respective B waves.  Crude will continue to rally a bit higher, Treasuries will continue to sell-off (price) & rise in yields...you will hear many calls that all bond money is now rotating into stocks which is a sign of the renewed bull market (i believe will be the perfect time to get long bonds for another rally)....risk assets have a bit more of upside room...

THEN, boom a huge reversal and epic Bull-Trap which precipitates a C wave down and wiping out all of this year's gains and then some....

Second scenario, which I must keep a very close eye on, is a renewed strenght in the internal techinicals of the market and individual stocks hold and show real breakouts in which the cluster of many fibonacci levels around the 2007 highs above 1500+ is going to be seen before an intermediate peak....

Model 10 portfolio has continued its strength and continues to outperform the S&P 500 since inception of 6/30/12.  I currently have 9 Long positions and 1 position worth of cash.  My current positions are still looking good and I see upside towards each individual price targets I've posted on the charts.  I will stick with them for the time being.  I will be looking for quick reversals and possible false signals to abort some of them.  In the meantime I will continue to scour my chart universe for possible longs and shorts, but with an emphasis on shorts as I feel I'd like to get the model 10 back to a more neutral posture.  The last 3 months of chart development has shown a necessity to be long and it has been a great place to be.  As always nimble, and unbiased is the name of the game and the only true way to invest/trade as a technical analyst.

Chart below reflects Model 10 performance through today's closing prices...