RealMoney Silver - It's Bad, So Keep Your Powder Dry

It's Bad, So Keep Your Powder Dry
By Rev Shark
RealMoney.com Contributor
1/4/2008 10:31 AM EST

It is ugly out there, and it's even worse than the major indices indicate. Breadth is around 4 to 1 negative, and we have 23 new highs and 597 new lows. The market has been trying to stabilize but is struggling to hold steady. We have all major sectors trading down, with retailers being particularly poor. Bonds are trading up a bit.

Although the mood is obviously very negative, I don't know if its bad enough to really deliver the sort of washout that will give us a tradeable bottom. Talk about a Fed move in the near future is picking up, but increased inflationary concerns are keeping hopes contained about any possible big bold action in the near term.

I've done a few nibbles of some of my favorites on weakness today but took a few stops and flipped a few that had some strength. I have a good amount of cash on hand and am going to be very patient in deploying it.

James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.

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