6/2/06 4:27 PM
ATR - TGIF

Today was choppy with mixed leadership and decent breadth. All in all, after yesterdays strong move, holding a majority of the gains was a win for the bulls.

In the early going, after what seemed to be a market friendly economic report, it was almost too obvious that participants were looking to sell into any euphoria, which sent the averages tumbling. The markets hit their lows shortly before noon at which time a slow grind higher commenced and proceeded into the close.

The afternoon dance looked very similar to that of a wall of worry, as we didn't see many participants embracing the move rather sitting on their hands awaiting the next woosh down. While this is entirely possible, the fact that a wall of worry may set in is also feasible, which could take the averages either way next week. The best thing to do during a situation like this is to remain flexible and keep your time frames short. Peeling gains off may be prudent however if you find yourself selling something simply because you think another leg down is coming and have no technical backing, it may not be a good sale. On the other hand, if you feel yourself becoming overly aggressive, simply because a stock has faded and but doesn't present any other technical appeal, this also may hurt should Mr. Market decide to dampen the mood. After a major draw, as we have recently gone through, staying flexible and versatile is key.

Rest up this weekend and well see you bright and early Monday morning. It sure is nice to see some gains, but now we must fight to protect them.

Have a good evening.

RevShark