Bears & Underinvested Bulls Hugging the Porcelain

The market nauseated the Bears once again as we predicted in our earlier post today, with its seemingly "naive and mindless" move higher. It sure doesn't feel good for the Bears now a days. In fact, it probably doesn't feel good for most of the Bulls either, knowing that most traders have not been nearly long enough during the past few weeks.

Breadth was solid and the Small Caps were up in line with the NASDAQ. Volume however, was light. Important bellwether stocks like MSFT helped lead the NASDAQ higher but were not yet able to bring the Semi's out of their side winding action.

Oil pierced the $62 price point that we've been speaking about recently, but sold off rather quickly as expected to close off of the intraday highs. We believe that Oil may make another token attempt at $62 but should then begin a more noticeable bout of profit taking. Should this coincide with an overdue relief bounce in the Semi's, we expect that the NASDAQ should get one final push, perhaps to 2,220, before it begins a sharper more fearful pullback. Our intention is to scale out of more of our long positions over the next couple of days in order to position ourselves for such a decline.

If You Held A Taser To Our Head: A Semiconductor led exhaustive push higher by midweek should culminate with the NASDAQ around 2,220 and an overall feel good sensation as the underinvested Bulls finally get more long. When that happens we hope to be mostly gone.

-Hope you traded well-

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