Despite what looked like quasi promising performance in the major indexes, the market generally struggled all day. Oil and Metals lead with force today, something we don’t like to see, however volume was light and breadth remained positive.

With minutes to go on the clock, it looked as if the Q’s were going out strong and troops were firing at the right time in order to set up a close at day highs. A program trade or something of the sort had other ideas sending the Q’s tumbling with seconds to go. Strange action like this must be noted, but with so many possibilities to what the last minute weakness was a result of, one can not let it affect the thesis for tomorrow.  

After today’s action we continue to feel a nagging sensation that the probability of a pop is increasing. Ahead of this potential move, Shark HQ was busy today building a fairly large position in the QQQQ’s. We will continue to stand at the ready should our thesis play out or should heavy volume selling set in, causing us to raise cash and pack it in. Either way, despite many taking off for the New Year festivities, we remain focused for any sign either way.

With many off for the holidays the action will remain thin and choppy, be on the ready should Santa throw us a bone or should the Grinch continue to rule the day.

Have a good evening