It was another day of tough going out there as the waters were choppy and dangerous. The major averages finished in the green and were quite misleading as the small cap sector struggled and some of the momentum names we favor bore the brunt of the selling. Volume was heavy and the major indices were positive but breath was negative. Semis came back and finished strong which is encouraging however the whipsaw like action was enough to exhaust even the most seasoned trader.

We continue to remain optimistic despite the choppy action and are encouraged by many of the strong earnings we are seeing from some of our core positions.

Microsoft is out after the bell and while the numbers look soft, it looks like guidance is much higher than expected for the year ahead. Big tech has struggled recently and it will be interested to see how the stock reacts to the news tomorrow.

The good thing about the action we are seeing is that it is precisely the frustrating panicky type of trading that leads to a strong bounce. It is very clear that many do not trust this market and as momentum leaders drift lower, I suspect it will only be a matter of time before we see another snap higher.

I sense quite a bit of frustration, which is definitely natural especially in this environment.  Hang in there and well continue to navigate these challenging waters together.

Have a good evening

RevShark