The window of opportunity is closing soon and most investors only notice a bull market when it is in full steam rolling over the bears. The more we continue to see higher lows for all of our equity positions, the more likely that we will soon experience a meaningful rally in the stock market. The leaders will be ETFs with high exposure to raw materials such as EWZ and EEM.

These periodic pullbacks are very normal. They signal a healthy consolidation within the market. Rest assured that it flushes out all the momentum day traders, hedge funds and emotional investors that just jump on the bandwagon for a quick buck. This is a bull market with occasional pull-backs.

On the other hand safe-haven assets are forming lower highs. This means that their intraday prices are not meeting the recent top prices. This is a bearish sign for funds of long-dated US treasuries such as TLT. There is not much room for safe-haven assets to go higher. They are due for a sobering retreat.

The behavior of the market during the past two months clearly explains how the financial market only rewards a small group of savvy and patient trader/investors. You must be prepared emotionally to buy in advance of a trend change. Investors will pay a lot higher prices when they act after the confirmation of the trend. It is all about vigilance. Yes, it can be difficult!