Mr. Market continued to dish out gains today as the major indices moved out into territory unseen in several years. In addition to the advance, the psychological Dow 11k was broken and held into the close. After a minor dip in the mid afternoon as the market wound down, the troops reloaded and all averages closed solidly higher. Breadth remained strong and sector leadership in the Small Caps, Retailers, and Banking continues to bode well for the Bulls.

Shark HQ was busy today taking profits off the table and doing some portfolio readjusting. We aren’t changing our thesis regarding the overall view of the market but suspect some profit taking will kick in as we inch higher on lighter volume. If you haven’t raised some cash levels and taken some of your hotter positions off the table, you may want to reconsider very quickly. A dip or consolidation would actually be healthy as a proper bull market does not go straight up. Once you raise your cash levels, and book profits you can begin to scurry through stock land seeking your next opportunity. All the while knowing your last trade was a success.

Technically we look very good but need a rest in order to recompose ourselves before heading higher. At Shark HQ we are updating our shopping list and will make sure to send ideas your way as opportunities begin to arise.

Have a good evening.