A slow start and a strong finish is textbook bull market activity. Despite what normally should have been a lethargic Veteran’s Day with the bond market and banks closed. We suspect the institutional managers and traders are not taking off early these days and are busy scouring their position sheets and looking to add new names as the performance anxiety continues to set in.  Volume slowed a bit today but the price action stayed strong.

This action is very promising; however, today’s leadership was in metals, commodities and oils which seems to be finding a base and heading higher. Furthermore, the semiconductors finished in the red today, something we don’t like to see however, the SMH remained above the critical 50 day moving average. We will become cautious should this sector remain weak but for now we’ll chalk it up to healthy consolidation after the semis have been tacking on gains every trading day since the beginning of November.

Both the S&P 500 and the Nasdaq are approaching the yearly highs and the DJIA is approaching major overhead resistance around the 10,700 range. We have come back very fast and it only makes sense that we will see some consolidation at these levels. The question will be if we have MO to take us through. We suspect we may be heading into a battle and some healthy consolidation wouldn’t be all that bad.

Nonetheless, it has been an exciting month thus far and after all the volatility we have seen of late the major indexes are still only close to flat year to date. The bulls are in control but they are feeling awfully confident so don’t be surprised if the bears put forth a little effort before they head back into the woods and hibernate as Turkey Day approaches. We remain optimistic and look forward to being on the front lines as the battle continues.

We have been with TSP members for a couple months now and would love to know if we are assisting you in any way. Please shoot us an e-mail and let us know. RevShark@SharkAssetManagement.com

It has been an exhausting week, enjoy the weekend and we’ll see you on Monday.