Bull Feast

It is hard to make money shorting these days.  After all the good times that the bears had from October 2007 to March 2009, they are facing the exact opposite feeling since that bottom in March 2009.  Yes, we had the drops in May and June, and a quick one in August, but the market spent most of its time this year going up.  The down periods were sharp but brief. 

I still believe we are in a secular bear market but the market is trying its hardest to shake traders from that view.  I don't see good value in most stocks in this market.  Things don't look expensive if you consider pro-forma earnings, but one-time expenses that repeat habitually should not be considered non-operating losses.  If you just look at operating earnings and the historically high profit margins, this market is expensive.  Valuations only matter in the long term but if we have another up year in 2011, shorting will get more  attractive. 

New highs again today in a rush for end of year performance.