Liar, Liar.

No tree grows to the sky. Has 'The Big Lie' come true? You can easily see the SP500 'tree' growing to the sky. You can also see the COPPER consolidation and the GOLD breakout at 660 and the TRANSPORTS breakout, despite a rally in energy prices.

For the energy afficionados, here are some P&F charts to watch. The bullish percentage of energy stocks has come off the bottom. (Net long HAL)

Want volatility? Here are some higher-priced shares that are poised to rock, or rollover? Volatility expansion setups but no direction implied.

Some miscellaneous charts that look at price relationships and market extension. The Dow has weakened relative to gold, XLY strengthened relative to staples as traders seek out risk, and the SPX:VXO ratio challenges highs.

Among my 100 'MUST WATCH' charts, here are the most oversold, which doesn't necessarily make them buys, just merits attention. "Buy 'em when you can, not when you have to." (net long GE, and my wife is a GE employee)

The Bear Case is simple, mean reversion to growth norms, multiple norms, dividend norms (1.8% on the SP500), extremely low mutual fund cash, and rising interest rates with a questionable dollar, under constant pressure from the printing press.

The Bull Case is equally simple. "WooHoo," "This time it's different," "The trend is your friend," "I can get out any time," "Debt doesn't matter," the US consumer will never give up, the Bernanke Put, and Victor Sperandeo's "follow the false train of hope to the end of the line, and jump off just before the end."

Good trading and great risk management.

Educational use only. Never intended as investment advice. Not a registered investment advisor.