It is tough to argue with today’s strength, so we won’t. While there was still a bit of confusion within the leadership, the semi’s tacked on impressive gains seeming to almost brush off the next top spot held by gold. We’ll chalk this up as a win for the bulls but the strength in defensive sectors such as oil and gold still must be noted and filed away. Breadth was solidly positive and volume was higher in the major indices than the previous days which are good signs going forward.

Flexibility prevailed today as we were able to quickly deploy capital into good opportunities. While we remain cautious and focused on protecting gains, we did not remain stubborn fighting today’s action. It is so important for participants to learn Mr. Market will do as he pleases and doesn’t really care what your overall opinion is. If you can not party when Mr. Market is ready, or take a breather when he demands, your stubbornness will cost you dearly.

Today’s action could very well continue for a few days as it seems performance anxiety is becoming a major factor contributing to this move. Money managers who are measured on relative performance will scramble to find new opportunities as the retail investor shuffles more money into what looks to be another Christmas rally.  

Shark Investors should enjoy today’s action but keep a watchful eye on the P&L making sure to take gains and book some partial profits. Mr. Market has shown up for round 2 of the party but we’re simply not sure how much is left in the keg.

 Have a good evening.

 Rev. Shark.