Perhaps I’ve been beating the bullish drum a bit hard lately?  I do it to remind myself – and all of you — that stocks can and will continue to move higher as long as most of us continue to be outraged by the very audaciousness of it. We know the rally cannot be anticipating “recovery,” since even blithering-idiot bulls can see that no recovery is even remotely possibly over the next two or three years for state and local governments. But what does that matter when you have short-covering panics capable of turning bearish head-and-shoulder patterns like the one shown in the chart into launching pads almost overnight?  The rally looks hellbent on challenging June’s highs, and I wouldn’t bet too heavily on a failure at this point. In any case, shorting just below these highs looks like Russian roulette to me — with three bullets chambered.