While the action in the major indices looked modest, the small cap stocks we favor were hot and heavy today. The overall action was very positive and signs of powerful momentum built.  Despite some technical difficulties, Shark HQ remained very busy today and moved accounts to new highs. After a good day like today it is very important to remember that one of our primary goals is to maintain accounts at their highs and not give back gains.

In addition to strength in the small caps today, retailers and internets tacked on impressive gains. It was nice to see a rest from defensive groups metals and oil and a resurgence in the cyclical steel stocks.  Breadth was positive and volume was descent, both positives which bodes well for the bulls. The S&P and NASDAQ continue to hold their 50 day moving averages and each seem to have found support after the recent sell off.

For now we’re continuing to monitor the portfolios and shuffle through all positions, weeding out the laggards or those that have run a bit far and moving in new names which look poised for breakouts. We always feel it is
important to keep things fresh and want to make sure we’re in the right sectors at the right time. We are in the heart of the earning season and so far the news seems to be a bit mixed especially from big caps but we aren’t changing our optimistic tone since so many of the small caps are acting well.

Keep those lists fresh and stay on your toes, if action like this continues it could be a very dramatic and exciting week.

Have a good evening.