Mr. Market has obviously been reading the Around the Reef comments as the action unfolded much as we had hoped.  The S&P and Dow broke out to yearly highs, while the Nasdaq recaptured its critical 50 day moving average. Breadth improved on the NYSE to end almost 3 to 1 positive and crossing the finish line in the sector race was our semiconductors, who despite being written off by many look to be fighting for respect once again. Volume was solid and despite some minor caveats such as the Qs and SMH remaining under the 50 day, today was a hands down win for the bulls.

The Nasdaq is still in the middle of its recent trading range and we can not let our focus and defensiveness drop. We can't throw caution to the wind at this point especially in view of the tendency of this market to do exactly the opposite of the day before. 

We are making a special effort at this point to reaffirm one of the key philosophies of Shark Investing and will keep a very tight leash on underperformers at this juncture. That means diligently sifting through the position sheets and mercilessly cutting those we have no sound reason to hold.

Today's strong action and the breakouts in the senior indices will surely shake up some of the bears however we suspect they wont go quietly into the night. Rest up tonight as tomorrow it will be more important than ever that we stay on our toes and be prepared to move quickly.

Have a good evening.

RevShark