First, the market DID confirm its breakout last week which requires an increase in portfolio models back to full equity allocations. The breakout has confirmed that the bullish trend remains in place and we must honor that trend for now.

There is also mounting evidence that market exuberance is getting extreme. I had a long talk with a money manager in California who works for a major firm who laid out 10 basic issues with the markets that has him concerned.

Raising Portfolio Allocations To Equities

The ongoing bull market was confirmed last week at stock prices not only moved above the previous resistance levels, but also sold off last Tuesday retesting support and then broke out a second time. The chart below is a weekly chart showing the breakout above resistance.

This breakout above resistance confirms that the ongoing bull market trend remains intact for the time being.

Regardless that markets are overly extended, overly bullish and excessively complacent which increases investment risk substantially, as I will discuss below, it does not mean that a crash is imminent.

…continue reading the full 17 page report HERE