How to be bullish.

US debt limit or 'ceiling' stood at $14.29 trillion currently, it sets the maximum amount of outstanding federal debt the U.S. government can incur by law. Hitting the debt ceiling would hamstring the US government's ability to finance its operations. On May 16, Treasury announced it would begin a "debt issuance suspension period" as a result of the United States hitting its debt limit. If Congress fails to raise the debt 'ceiling', Treasury can no longer issue new treasury bonds to raise fund to finance Government expenses that include interest payment to debtors, that will lead to a default.

Bill Gross,“The U.S. has a $60 trillion net present value liability burden and that constitutes Medicare, Medicaid and Social Security in combination. That is 4-5 times GDP and it certainly exceeds those liabilities in Greece, Portugal and Spain. Ultimately, the U.S. has a big, big problem."

Bill Gross, age 67, is a financial manager, co-founder of Pacific Investment Management (PIMCO) that manages the 'Total Return Fund', the world's largest mutual fund with assets exceeding $240 billions. PIMCO began short-selling US Treasuries in March 2011 expecting interest rate to go up when bonds and dollars started to fall.

It is really hard to imagine the market can continue to stay at this high level for such a long time despite of all the domestic problems, European debt problems, high commodity prices and other global political problems. I am looking for the formation of reversal patterns such as 'head and shoulders' or 'bouble tops'.


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