Despite a late fade the markets bounced very well today. Every major sector finished in the green and breadth was over 4 to 1 positive. Most impressive was the action in the small cap earnings winners, which once again displayed just how quickly they can heat up and repair portfolio damage. We hope you participated.
We remained very active today adding new names to client accounts while scaling out of laggards or names that didn't participate in today's action. Despite the fact that we surely haven't seen the end of the selling, keeping the portfolio fresh is key especially, during a rotation where new leadership starts to surface.
The last hour fade was a bit troubling but validates our thesis that this market is very tough to trust and remains technically damaged.
While it is always nice to see some decent gains, it is very important to remain on our toes. We suspect the bears still have many tricks up their sleeves and it will be quite a battle for some time.
Have a good evening.
RevShark