On many occasions today, Mr. Market looked as if he would take a breather and roll over. Despite these brief signs of weakness the averages went out near highs on the day continuing to baffle even the most bullish of bulls. Small caps were week today, selling off close to 1%, which is typically an early sign of participants booking profits. On a continued bullish note, semiconductors continued with the Mo and finished the day in the top spot.

There isn’t much not to like about this market right now but one can not throw caution to the wind. Many participants seem to have a problem selling into to strength and when greed takes over, Mr. Market will be sure to show up and remind you it’s his party, not yours. Shark HQ has raised a substantial cash position and have moved over to the dark side where we can, hedging with some QQQQ short. We will look for a rest before redeploying our capital and seek to keep all accounts at highs.

TSP Talk members may consider repositioning partial funds from the S-Fund or C-Fund into the G-Fund as a resting place. We wouldn’t be cashing all the chips but a partial move to book some profits would definitely be prudent.

We continue to enjoy the ride but feel quite confident that the track may be nearing an end at least temporarily. Be smart, be quick, and don’t be greedy.

Have a good evening.