Holy Moly Batman!

When the Semiconductors started showing positive performance and brought themselves up over 0.5% on the day your friendly neighborhood Kcap Team started schvitzing. The decision had to be made as to whether or not to follow our well laid out logical plans or just say PHUK it (can we say this?) and start adding some more exposure. Being the good intermediate and long-term Bulls that we are we decided to choose the latter and fortunately so.

The market soon spiked and closed at the highest levels since June 2001. Breadth was awesome however the volume was just OKAY. The interesting thing about this market is that the higher we go and more likely we are for a sharp correction the more participants have built in fat to handle such a decline. Therefore, selling volume will be light helping to keep the dips shallow. In other words once you start playing with the house money you are less likely to be protective over it and will not feel the need to sell.

If You Held a Taser to Our Head:
All-in-all our finger is still on the sell button with our rented exposure that we have acquired over the past couple of days. We are currently 100% net long, 80% of which represents our core positions. A sharp decline is inevitable but is now difficult to forecast from what level. Don't get us wrong, we are cheering for such a decline to happen. Any juicy shakeout from here or above that fully recovers will be magical for the Bulls going forward.

Hope you did well!

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