After a shaky start, the market rallied nicely most of the day and that has us feeling pretty good overall. A sell program in the closing 30 minutes hurt, but we were impressed by the relative strength in the Nasdaq. Breadth could have been better and wed like to have seen some upside in chip stocks, but volume dropped slightly which is a positive.
The only sectors finishing green on the day were banks and oils and leading us to the downside was chips and gold. While we don't consider today's action a win for the bulls, it certainly wasn't a triumphant day for the bears either.
Despite the 1 or 2 laggards that continue to plague a stellar position sheet, the stocks we tend to favor held up well and many possessing strong fundamentals continued marching higher. In addition to those already attracting bids, our shopping list is growing as many earnings winners are now basing out after being thrown out during the recent storm in SmallCapVille.
Due to the afternoon weakness, the bears will still argue that we are on the verge of a crash and will point to the fact that the major averages are struggling to take out highs and the Nasdaq has continued to put in lower highs and lower lows. While these technical variables are important, we still cant shake the feeling that a move into this wall of worry may continue slow and steady. For the time being we remain optimistic and will continue plugging along until our charts tell us otherwise.
Have a good evening.
RevShark