The market slowly move higher in quiet action for most of the day with big caps leading the way. It looked like a typical day of pre-holiday trading until the final hour of action. Oils and semiconductors reversed hard and profit taking kicked in. 

 

Our feeling is that there are too many people anticipating the historically positive action that we see during Thanksgiving. Many anticipated the strength and accelerated their buying leaving  less money on the sidelines to drive us further. With some big gains to protect it doesn’t take much of a pullback to start a rush for the exits.

 

As we noted we increased cash levels yesterday and became a bit more cautious.  We still believe the market has a good chance of rallying through the end of the year but no one can say we aren’t technically extended and in need of consolidation at this point.

  

We have a much needed day off tomorrow, then its back to the battle lines for a short day of trading on Friday. With action like this today, Friday could be very tricky.

 

Rest up, enjoy the Turkey and we'll see you on Friday.