Today we remained busy despite what should have been a pre-holiday, mundane Tuesday. Were we firing away new buys and scouring through volume scans looking for big movers? No, in fact we did quite a bit of selling today taking advantage of the continued euphoric environment.

Early action today seemed light as many were looking forward to a needed day off and shortened trading day on Friday. This action didn’t last as the FOMC minutes were released indicating a slightly more dovish tone creating a quick pop and buying frenzy. Sector leadership was mixed as the Semis moved out after taking a brief rest yesterday as well as the banks which were given extra fuel after the minutes were released.

While our optimistic opinion has not changed we have continued to feel as though we have been dancing on a high wire, ramping up a bit too fast. As we indicated in previous pieces, a rest or consolidation would have made us a bit more comfortable but for now we simply want to make sure we keep the gains that have come over the past several weeks.

Many market pundits have been predicting a year end rally and so far that call seems quite good.  While we certainly would welcome more gains, the recent run has already been quite solid. Unfortunately, many didn’t catch it as early as our subscribers and are still looking to jump aboard looking for more gains. Typically, it is when others attempt to play catch up that Mr. Market will decide the party is over. We’re not out of the door yet, just making sure we know where our coat and keys are.

After raising quite a bit of cash today should the market take a breather or consolidate a bit, we will be very active in searching for new opportunities or remounting favorites. For now, we’ll simply be patient, pick at some short-term trades and let the market do its thing.

TSP Members who can not act as quickly as a trader may consider booking some partial gains. We have had a good run and you don’t want to give it back.

Have a good evening. We’ll see you tomorrow 

RevShark