It was yet another day of choppy and mixed action with some deceptive major average moves. The Dow tacked on 71 points and the Naz 3, while under the surface the momentum earnings winners were being smacked around and big tech continued to struggle. Gold lead on the day, with the networkers and retailers finishing strong. The semis closed down .53% but managed to
repair earlier damage and look poised to head higher, especially after some solid earnings reports after the bell. Breadth finished positive but by a very narrowed margin.

While many seem to be looking for profound reasoning behind the recent choppy action, at this point we continue to believe it is a result of a sector rotation, with money coming out of oil and energy. Unfortunately, it isn't yet clear where this money is headed but with the solid numbers coming out of tech land, we cant help but believe this area is a prime recipient.

While it isn't always easy, were continuing to remain calm and working very hard at looking into the names that seem to be getting sold off. If our rotation thesis is correct and the market stabilizes, we believe these are the first areas that will receive attention.

Rest up, it looks as if the remainder of the week will continue to be exhausting.

Have a good evening.

RevShark