Mr. Market threw some volatility into the mix today and finished positive after some painful negative action in the early going. Volume was light in the morning session, but as bids disappeared the action in SmallCapVille was particularly painful. Further panic wafted through the air as participants dumped stocks and it looked as if there was not a bottom in sight. While it is never easy we held strong through the panic selling and let Mr. Market do his thing.

As the long awaited Friday afternoon approached and it looked as if the selling would continue, Mr. Market snapped higher as buyers stepped in to take advantage of deep discount pricing. Many of our favorites closed close to flat or positive on the day after an early wash out, creating many hammers with long tails on the charts. While this isn’t the sign of an all clear, it is a start and we’ll be watching closely to see if the positive close picks up any traction.

One positive on the day is that metals and oils were off once again and we feel pretty confident as we scroll through the charts in this area that money is definitely heading for the door. Unfortunately, we haven’t yet determined where the money is flowing and until that happens we won’t feel completely secure selecting a new hot sector. Charts in the semi conductor area look to be setting up and we would be very pleased to see this area attract attention. For now, we’ll remain patient until we’re sure.

With the volatility in the markets, it was an exhausting week and we are looking forward to a relaxing weekend. We’ll be spending quite a bit of time going through charts for a better feel as to where money may be headed.

Rest up and be ready to rumble Monday morning.

RevShark