The bulls kept control today, albeit in a very quiet manner. We would prefer to see the market rest here, but we have often said that when big MO is in town, he tends to stay much longer than those expect. We too are surprised by how long this party is lasting, and we are doing our best to stay at the party until the bitter end.

We do however think it’s a good idea to be increasingly vigilant as the chances of profit taking are increasing sharply every day. We would like to see a longer pause or minor pull back soon because it will help prevent the sort of one day reversals that can catch you by surprise and be very painful. So despite the good times tread carefully, keep a finger on the trigger and adopt a cautiously optimistic frame of mind.

The most encouraging thing about today’s action was that leadership was in the semi conductor sector, which was led by Marvell Technology (MRVL) which posted better than expected earnings last night, giving a boost to the overall group. Furthermore, breadth remained positive all day and volume was heavier than the past 2 days, a good sign moving forward.

In a market such as this, which has come back very fast and very far in the past 4 weeks, it is challenging to find new buys. Many of our stocks look extended and need a rest. We continue to slowly pair back some positions and scour the landscape for new buys. We want to remain prudent but will let Mr. Market tell us when the good times are over.

Have a good weekend.

RevShark