Santa kept his word and sent down the Semiconducting Elves today, who in typical elf like fashion, made a grand entrance posting a solid 1% return. It was a good thing, because we didn’t realize what it costs to call the North Pole.  

Breadth was positive all day, but volume was light across the board, not surprising during a Holiday week. All in all it was positive action and with the indices going out at day highs, the stage is set for the Ho Ho Ho’in Santa Claus rally. Oil lagged today, a positive sign, however gold led the market and is worth noting so we don’t become too confident should Mr. Market decide to splash a little cold water on our Holliday cheer. 

We believe that thin trading during the holidays should favor the upside as the bulls have much greater motivation to push us up and boost returns than the bears have to keep this market capped. In addition, many of the bears are bigger institutional investors or funds that tend to wrap up for the year early. The potential for more upside looks good.  

We remained active today, nibbling some new positions and taking the opportunity to book some gains. We continue to remain firm in the idea that people may be underestimating the potential in a continued snap higher. We suspect that many of the larger players are packing it in, which may only leave those die hard bulls seeking to add a couple more % points before closing the books for the year.

Our wish list is ready and we will remain alert regardless of the coming action.

RevShark