It is tough to call today anything other than a very big win for the bulls. Leadership remained mixed with great moves in Semiconductors and Networkers while Oil and Gold also stayed very strong. The Russell 2000 put in a new all time high which bodes very well for the small cap momentum plays we favor. Breadth was over 3 1 positive on the NYSE and remained strong all day with volume picking up quite strongly.

We stayed very active today, trimming here, adding there focusing on what was working and quickly eliminating what wasn't. Despite some very strong action, we managed to raise our cash levels a little ahead of earnings as we will be looking closely for new opportunities.

We have been taking some heat for our rather stubborn bullish posture but we were simply trading what was in front of us and there has been no reason to be unduly negative despite all the macro arguments to the contrary. From here, it will be very important to stay on your toes and look to protect profits. We are still in a challenging environment where our A game is needed
each and every day.

After the bell we see a light report from Amgen (AMGN) and Motorolla (MOT) while the IBM report (bottom line) looks good but isn't yet seeing positive action after hours. Semiconductor Cymer (NASDAQ: CYMI) reported solid numbers, raised guidance and is trading higher, boding well for semis going into tomorrow. Texas Instruments (NYSE:TXN) and is helping the bullish cause. Yahoo (NASDAQ YHOO) numbers are just ok but that is enough to get the stock moving.

Have a good evening.

RevShark