Are there any sellers out there?

Here we are again. The market forged ahead led by the Semi's as we had expected. Bellwether names on the NASDAQ such as MSFT took charge and disproportionately skewed the averages higher. This is due to the way the market capitalization is weighted in the NASDAQ. Small Caps performed okay but seemed a little tired to us. Overall this type of action in the market is what we had been expecting as an indication that we are closer to the top of this rally than many would believe.

Perhaps performance anxiety from mutual funds is what fueled the large caps. Eitherway, when those babies start to run most traders will find themselves lagging the averages. In fact, even with a slight rebound in Oil today, the market chose to focus only on its seemingly relentless path. Volume even picked up and breadth was solid.

We made many partial sales into this strength throughout the day. We are still somewhat net long but plan to make more sales into any further strength tomorrow. We do not however, intend on getting totally out of the market due to our longterm bullish outlook. Timing short term tops is always difficult especially when you are a long term bull. Therefore it is prudent to always have a leg in the water.

If You Held A Taser To Our Head: We would continue to sell into any strength despite our feeling that we are the only ones in the cosmos that are selling stocks. It is always uncomfortable to be a contrarian especially after a long run, but propper positioning usually provides a large delayed reward.

-Hope you traded well-

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