The market bounced today and bounced well as money flowed into the badly battered big caps. The major averages were all solidly higher today after investors digested the earnings report from Cisco and decided that maybe DELL, AAPL, YHOO, ORCL , EBAY and other big technology companies may stay in business after all. Volume was average while breadth improved steadily throughout day.

Under the surface the market was led by technology while gold and oil lagged. Oils and metals bounced back a bit from yesterday's pounding but it looked more like a trading bounce than a quick recovery. Networkers and semis made strong moves today and small caps in general showed some life. Leadership today holds some promise.

While we are optimistic about the market, we aren’t ready to throw caution to the wind. We feel as though this may be a taste of what is in store if a rotation out of oils and metals continue but we want to see further confirmation before buying more aggressively. 

We removed our hedges today but still sitting on a very high level of cash. We have a long list of opportunities that we are looking at, but for the time being are remaining patient and moving very slow.

Have a good evening.