5/16/06 4:36 PM
ATR - End of the Day Comments

It was yet another poor day for the market averages however the small cap earnings winners that we favor showed signs of life, which bodes well going forward. Often, after a severe sell off, traders and investors will first sift through only the highest quality stocks looking for bargains after others have thrown them out without a second thought. This looks to have started to day and it is due to this process we believe we saw strong moves in Sharkfolio stocks such as GROW, BTUI, IFO, NDAQ, BITS and LMIA. While we don't all of a sudden throw caution to the wind, it does start to reaffirm our thoughts that the world is not coming to an end and buyers will once again reappear to bid our stocks higher.

While the overall technicals didn't improve much at all today, breadth finished positive which is also another encouraging sign. We wrote this morning that we suspected an oversold bounce was coming and while it didn't come to fruition today, we believe signs are starting to emerge that it is around the corner. Just as early strength was sold this morning, we don't anticipate any move higher coming without a fight and any thoughts of gaining back your losses in one day, is setting yourself up for disappointment.

Rest up this evening, we suspect the next 3 days may start to become very exciting.

Have a good evening.

RevShark