It was tough going out there with choppy action throughout but we still had a decent finish with some strength in small caps, networkers and a semis. Breadth finished off the lows but still ended poorly. After the market closed weve had more strong reports from some small caps with a decent report from Amazon (AMZN), which has the stock trading higher after hours. Sentiment has been so negative for many big caps like AMZN that an inline report is enough to cause an uptick.

We continue to be select and nimble during these times as the market action remains choppy and looks to be walking a fine line. With that said, we cant shake the feeling that we continue to set up for a strong move higher sparked by a rotation into technology.

In our Shark Sector Timing platform we acted on this thesis taking an overweight position in the
Semiconductor Holders (SMH) as we believe these stocks are finding bottoms and are due for a turn.

Other than that, were staying busy during earnings season trimming stocks ahead of reports and analyzing others that look to have strong numbers. Should the market remain weak or trend lower, it will be these stocks that set up for great entry points and will be winners in the next move higher.

Have a good evening.