The market continued to move higher, albeit at a slower pace and on lighter volume, as it continues to become clear that there are simply too many non-believers. This action bodes well for the market as we suspect it will continue to quietly move higher as underinvested portfolio managers worry about their lagging returns. We believe many will start to really feel the performance anxiety creep in if the market stays steady creating a frenzy of buying and eventually leading to an overbought top.

While we still believe this scenario is far off, it is worth mentioning so Shark Investors have an idea of what is really going on should we see this heavy volume, panic buying action. However, for the time being, we continue to watch as our EPS winners, push forward, trending higher and setting up for further additions or remounts.

As oil continued lower, the market was led by the retailers and banks. While we would like to see some technology in front, they weren’t too far behind with Semi’s continuing to improve and the Semiconductor Index attempting to recapture its 50 day moving average. Breadth improved nicely during the day and big cap tech showed some life, again giving credence to the theory of institutions arriving late to the party.

We would love for the methodical move higher to continue however we suspect we will start to see an increase in volatility soon.  It is important for Shark Investors to be as prudent with selling as with buying. We have seen good gains these past several days and there is no indication at this point that this will stop however, should we see euphoric buyers arrive it will be time to practice prudent money management and begin to raise cash.

For now, we dance.

Have a good evening.

RevShark