Volume was very light today but we managed some nice bounces nonetheless. In particular many small cap earnings winners regrouped and made up much of yesterdays losses. Gold led and advanced 2.55% while the general small cap sector came in second with select technology, semis and networkers, also in the running. Breadth finished positive and improved throughout the day to close at 1687 vs. 1299 in the NASDAQ. Despite
the strong move, the S&P wasn't able to recapture the 50 day moving average; however the NASDAQ continued to hold critical support which may bode well going forward.

While the action remains choppy and volatile, we believe the action is correlated with the major
averages (S&P and Dow) testing multi-year highs. After climbing back slowly over the course of years, many participants simply believe we must correct. The skittishness seems to be
very high and at a moments notice participants are willing to hit the sell all button and adopt a
bearish attitude. This could be compared with the extreme volatility that set in last year as the
Japanese Nikkei was hitting multi-year highs after climbing out of the depths. The volatility seems to be something that we must embrace and deal with rather than expect it will soon go away.

We made up some decent ground today but have yet to gain any good upside traction. With
earnings season starting to come into play, a few good reports may get us going in the right direction. After the bell, Advanced Micro Devices, (AMD: NYSE) started us out by reporting better than expected earnings.

While the action is sure to remain choppy we would like to see the bulls put together a few solid days in a row. We have many new opportunities we are watching and in a slightly better environment feel ready to deploy some preserved capital.

Trading is going to be extremely thin tomorrow as many traders are out for the Easter and Passover holidays. Don't forget that the market is closed on Friday.

Have a good evening.

RevShark