The Dow closed for the first time above 12,000 today. It's fifth record close in 6 trading days. Companies are recording record profits, oil is down, inflation seems to be in check. I'm still a bear though.

I have been unloading my positions. My position in True Religion is a fraction of what it once was. Today, I sold my Apple options (doubling my money in 3 months), and my Starbucks options (90% in 2 months) and bought more QQQQ puts.

Google posted some good numbers, and I'm going to continue holding onto those shares. I'm a big fan of the YouTube acquisition as that places the company number one in not only search but also in video. And by combining the two, I'm sure they will be able monetize it nicely. I'm still holding my options at the moment, mainly because I'm still in the red with this investment.

The NAHB Housing Index also stabilized this month, which is fueling this rally, although I don't know why. Permits are down, which are usually a leading indicator of construction in general. Also, something to remember, the index is down more than 50% from the highs we reached last year. And more importantly, the S&P 500 has a 90% correlation with this index on a 12 month lag. I'm still not sold on the idea that "This time it's different."