Despite a down day for the major averages we were quite pleased with what we saw throughout and especially the way we finished. Semis lead on the day advancing over 1% while the biotechs finished in second, oil and gold both finished deep in the red. The general small cap index finished in the green after being down close to 1% intra day, which is a very bullish sign. The only area that is a bit disheartening is breadth, which finished lower, however by a much more narrow margin in the NASDAQ than the NYSE, signaling relative strength in technology.

We have been discussing lately just how important it is to rotate your stocks continuously looking for new opportunities. This is one of the main drivers behind our new Shark Stock Watch feature, which we hope you have found useful. What has felt like a spinning of our wheels paid off today as we saw solid out performance in the accounts, despite a flat day for the overall market.

We have also continued to believe that we are seeing a sector rotation, which is always choppy as money leaves one area and enters another. Since energy stocks make up such a large percentage of the S&P 500, it is only natural to see big swings if our thesis continues to play out.

We added quite a few names today and feel very good about our positions going into tomorrow. We believe we hear Mr. Market and Dr. Mo knocking at the door getting ready to start the party however we will have to wait another day or so to see if it isn't just wishful thinking.

Rest up, tomorrow may be full of excitement.

Have a good evening.

RevShark