The market did a little juke and jive today, making for some good trading if your time frame was short. The resiliency of this market continues to impress us as any weakness is bought very quickly not allowing us to build the uncertainty we would like to see. While we would ironically like to see a better pull back before heading higher, this action may set the stage for a strong move higher and ultimately a blow off top.

We can’t imagine institutions not growing ever more anxious as the market averages continue to methodically tack on gains. Being underinvested is quite painful especially if you are trying to compete against a benchmark index that is holding well. 

Gold led today, which we don’t like to see; however, following very close behind was the semi-conductors which reversed nicely during the day and continue to show good relative strength. Worth mentioning is the fact that the Semiconductor Holders (SMH) reclaimed the 50 day moving average and is flirting with a break above the intermediate down trend. Even Intel has moved back close to its 200 day moving average but is looking a tad extended now. This bodes well for the market as we would like to see leadership in technology stocks going forward, and will be watching this sector very carefully.

Cisco (CSCO) just reported and the market seems satisfied with its first look at the numbers. A good report here will put further pressure on large institutions to invest their idle cash or face being left behind as the market run continues.

We added some longs today, but kept our hedges in place should the weakness we expect, come to fruition. We are actively reviewing our shopping list and looking for new opportunities. There are a number of interesting possibilities we hope to send your way as the action heats up.

Have a good evening.