At the close, the Nasdaq had another positive intraday reversal and closed higher by .3%. It was yet another six-year high for the tech heavy index and the fifth session in a row the indexes dipped lower, found support, and rallied to close near the highs. The SP 600 finished higher by .05%. This was the seventh straight positive close, for the SP 600, and was also the sixth day in a row the index has dipped into the red to only reverse and close higher. That kind of action on both of these indexes is very bullish.

The SP 500 was lower by .1% and the DJIA was the leader to the downside with a .4% loss. 22 out of 30 issues were in the red on the DJIA and GM and MRK were definitely the two issues creating the most problems for this index.

Leading stocks held well, with the IBD 100 falling .1%. The best index on the day was the Philly SOX index. That index put in a 2.8% gain, which definitely helped the Nasdaq today.

Volume was slightly lower on the Nasdaq and was slightly higher on the NYSE. This was the second down day in a row on higher volume, for the NYSE. However, with the positive intraday reversals and small losses, this clearly is not distribution on this index. The fact that volume is also below the 50 day volume average also shows that there is not really any selling going on by the big boys right here.

Breadth was even on the Nasdaq. But on the NYSE, breadth was negative, with decliners beating advancers by a 5-to-3 margin.

The one bright spot of the day was the Semiconductor index. That index and those stocks alone helped save the Nasdaq. Good news and an upgrade on ADI, and upgrade on NSM, and good action from LLTC ATHR TXN and MXIM was music to the bulls ears in that sector. However, this index remains well off its old highs in 2006 so I would not expect a whole lot out of this sector just yet. There is simply too much resistance in this sector for any consistent meaningful gains to be had any time soon.

Overall, though, this market is just insanely bullish. This insane strength, without any pullback, I am sure has surprised everyone! It has me. Everyone is still looking for a pullback, including me, and that probably means we still will not get one yet. This momentum is out of control and simply impressive. It is stunning, and even though I am starting to see many stocks go into climax runs, this market still has enough momentum to keep going higher and higher.

The bulls are high in the Investors Intelligence, AAII, market vane, and realmoney.com surveys. However, this highs bullishness does not correlate with the actual betting of market players. The put/call ratio, according to IBD, is at .93. According to my data at the CBOE it is around .66. The total put/call is at 1.03 for index and stock options. This is like the 20th day in a row that this put/call ratio has been around the 1 or higher level. How long can this last? And which put/call ratio is the right one on the equity? is the equity at .66 or .93. However, until the total put/call is under .5, I doubt this market will rollover any time soon. At least the put/call is not a 2, while the market hits all-time high. That would be 10x more insane than what we are dealing with now.

Don’t get me wrong, I love making money and am making it. However, I was making just as much money when I was long 100-200 stocks and scanning only 500-800 charts a night. Now I have to go over 280 holdings and scan 1000-1200 charts every night. This is getting taxing and stressful. I swear I would really love to see a pullback here. My exhaustion is your capital gains.

I am beyond exhausted tonight. I am not sure why I had so much extra side-work but I did and it is time for me to crash. Aloha and I will see you in the chat room.