THEME: BULLISH CYCLE
The market continues to act and feel bullish.
Sentiment continues to be sceptical.
Semis bounced hard today based on some upbeat news by Nokia and National Semiconductor. People have been burnt badly by this space. Consensus is that more bad news is still to come. Texas Instruments reversed its previous 5 days losses and rocketed higher. It all acts like people are rushing to cover some shorts. It feels unsustainable. Sentiment refuses to peak, which gives this run more energy.

I will stay long SMH until the sentiment shows some sort of peak. Nasdaq is leading, which hasn't happened in a while.

AAPL continues to make higher highs, although it was pounded by a downgrade from Bear Stearns today. AMZN continues to languish. Apparently, I have yet to see anyone make the connection that the iPod cannot be good for AMZN. I continue to hold the AAPL/AMZN spread.