Fear VS Greed on the General Markets - DOW, NASDAQ

Feels like we are waiting to break out above or going to have a garden variety pullback.    Under these conditions it might make most sense to buy CALL Options.    You tie up less money and hedge yourself in case there is a large move up. 

The Bears Team:

1. WIKILEAKS and Internet mischief with Mastercard
2. Market is high and there is a long way down in investors minds.
3. IRELAND!   GREECE!   What about Portugal, Spain, and Italy?   What about a recurance of Greece unresolved issues?   
4. European pop-up issues from the banking, lending, or housing issues from the little or big PIIGS.    Moody's or S&P downgrades possible.
5. Future Headlines? - "EU Division Eminent On Spain (or Italy) Moody's Bond Rating Downgrade!"   
6. China, Australia continue raising interest rates.   Not really sure this is bad for US when you look out months
7. Israel and Iran are unusually quite.   When will hatreds in the Middle East ignite again.
8. How much BS can South Korea tolerate from North Korea.   North Korea massing special ops troops on the border.    Will posturing ever be misinterpreted into WAR?
9. CALIFORNIA STATE DECLARES BANKRUPSY!    just kidding!  But someone is going to post something like this and the market will react.   California, New Jersey, Ohio and populous "Blue" states still are running unsustainable deficits.   There is a lot of downside to a credit downgrade of a state and a lot of potential what next questions.     What will be the market ripples on a large state downgrade?
10. Currency Wars to deflate currencies.   How will China, Brazil, and Japan continue to lower the Dollar?
11. Market is at a 12 month high.   Risk of a correction is real from a technical standpoint.    There is a long way down especially in peoples minds.
12. Companies are running out of ways to cut costs.   Given they are not growing what will propel valuations higher. 
13. Investors remain skittish about past Dot Bomb and Financial Busts.   Major downturns have not had enough time to be solidly in the past.   Market memory is still very negative so greed is not likely to take hold for quite a while.

The Bull Team:

1. Money flows are moving out of bonds and into stocks again.  What possible upside is left in the bond market?    QEII will continue to drive people out of bonds.    Individual investors will start to move.   The question is when and how fast?
2. Need more detail of how much though.
3. QEII - Stimulative Spending II is a go.   The economy seems to be moving and this bill will likely put us over on stimulus.
4. Earnings are getting better
5. Unemployment is starting to firm.
6. EU will just spend its way out of Banking issues.
7. Bernanke will spend his way out of the Recession.    He has great wisdom about depressions.
8. More elected republicans make DC more business friendly (less effective politicians)
9. Government gridlock is likely to limit spending programs?    We will see.  
10. Earnings are likely to push further higher on continued cutting and trimming of budgets
11. Europe risk has calmed down and become background noise after Irelands latest downgrade.