I'm down to one screen this afternoon as fallout from Hurricane Wilma had a delayed impact on Shark HQ. Nonetheless I'm contemplating disconnecting more screens tomorrow as our recent bullish posture paid off nicely today. A number of variables came together creating a burst of energy for the equity markets. After the wash out last week, we suspect many people had given up on the the market and aggressive traders accumulated short positions expecting further market deterioration. Those folks were badly positioned today as Friday’s stealth small cap and technology rally carried over into today and stayed strong right into the close. Many investors and traders were scurrying to close out shorts and put money to work for fear of being left behind.

Early in the day, rumors wafted through the air that President Bush was going to announce the new Fed Head, which was proven factual at 1:00pm when Ben Bernanke was appointed to replace Alan Greenspan on January 1^st, 2006. That news helped keep the market moving as pundits were quick to point out that he is potentially more ‘dovish’ than his predecessor. 

Regardless of the way the media spins today’s action, it was clearly a positive for the market going forward. Some key technical levels were recaptured and action in technology stocks and the small cap sector was strong. We would have liked to have seen greater volume today, but it may take some more time before institutions step up and begin putting big money to work. We suspect big money maybe waiting for the upcoming fed meeting on November 1^st. 
  

Hopefully we’ll be back in full force tomorrow and we hope those of you in south Florida didn't get hurt to badly by the storm.  

Have a good evening.