Yesterday by the close there was little other than euphoria. The Dow closed at its 15th new all time high for the year, volume continued to expand, and the Dow Transports confirmed the move upwards. As a pilot would say-CAVU, clear above, visibility unlimited. Or is it? VIX filled the gap below leaving the one above (at 15) open and beckoning. My RSM which I was certain would confirm the move, fired off a first abort, rising only to +6. At each new high point since the confirmed RSM high on 6/5/14 the number has diminished at each new high showing that fewer and fewer stocks are participating in the rally. Normally these would have been followed by significant correction BUT NOT AT MARKET TOPS. Yesterday RO dropped by two to +6; that’s down from +22 at its peak just after 6/5. DowOBV clicked off day 4 up. Dow Theory or not trouble is brewing big time and yet there is so much bullishness and euphoria (and such a strange and convoluted abort pattern) that I would not be surprised to see a pullback followed by another rally with a more classical abort structure. Not to say it will happen but it just might. There are 12 of the Dow 30 stocks in extended down trends. They are either oversold or will get there with a decline so comes my last gasp rally theory. On the other hand among the topping process measures many are screaming TOP now. With the expanded volume yesterday ETF DIA had diminished volume-a bad sign. Investment Advisors index is above 60-reversal time, put/call ratio shows no interest in puts-euphoria one and all. Good news is good-bad news is good-not a sign of the times, a sign of a top. The junior indexes like NASD and RUT have turned lower as money flows toward the bluest of chips making for new Dow highs. The increasing volume with lower RSM numbers is an indication that there is liquidation occurring. Much money is flowing to the 10 year and is why rates are now at 2.50-down from 2.65 just weeks ago. Gold bounced-but not much. Gold could rally to 1375 (especially with the Ukraine and Gaza) before visiting something below 1180 but no guarantees, could go straight to the bottom from here. The dollar had a big day. It has crossed both major moving averages (which themselves are preparing to cross (the cross of gold). This might well be European money flowing to the perceived safety of the dollar in anticipation of-whatever, there are so many teetering problems in Europe! Expect the buck to kiss 83 sooner than later. Yes, yesterday was CAVU but think of this; hurricanes begin with tiny wisps of high, slightly arced cloud. It is what I saw when a hundred miles offshore two weeks ago. I headed to the nearest port. Still the sky above is CAVU but the indicators I have mentioned-only a few of many that all say the same thing are forming tiny wisps in the investment sky. Its up to each skipper individually to determine his course of action. When Hugo was inbound to Charleston four of the areas great yachts decided to head to sea to ride it out. The aftermath on land was horrific. Marinas totally or near so destroyed. Was theirs the correct decision? I do not know, not one of the vessels has ever been seen since. It’s getting time for a safe port of call.