Wall of Worry Bodes Well for Future Ramp! 1-25-06

Good Evening.

Admittedly we are impressed with the recent action in the market. The wall of worry has been tempering the Bulls and sucking in more Bears. Although the market declined today, Small Caps and Semi's acted rather healthy. We were even surprised to see that the sell off has created the potential for the Bulls to claim a "retest" of the recent lows. While it is possible that a third test of those levels can happen, we do not believe that the selling will get out of hand at this juncture. A few more positive earnings reports would calm the nerves of the frazzled fundamental types which may invite MOMO back to the party.

After the bell, some positive reports in Semiconductor land bode well for a little upside action in that group. We have purchased some more SMH after hours in anticipation of follow through tomorrow. NASDAQ 2300 remains our ultimate target and we may even consider raising that slightly as we get closer.

Sorry for the short post as we're running late for a presentation. We will not be posting tomorrow but will return on Friday.

Hope you traded well.

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