Decent Day for Bulls

We had some severe intraday volatility, but in the end it was a decent day for the bulls.

We started off with a gap up that was sold quickly, but the bulls regrouped and got a pretty steady rally going until early afternoon. We rolled over hard, testing the day's lows, and then rebounded in the final hour to manage a close near the highs. It was very herky-jerky action and difficult to trade intraday, but it was a decent rebound after the drubbing we suffered on Monday.

I'm a bit more optimistic about the potential for some upside from here. If we can continue to hold 810-820 on the S&P 500 for a few days, the buyers will be itching to catch some year-end strength.

What we really need is some slightly positive news like a deal for the automakers and GE (GE - commentary - Cramer's Take) reaffirmation of earnings. GE really helped the bulls quite a bit today -- when a key stock moves like that, it gives us something to build on.

Right now this market requires a lot of work to extract some reward. The whipsaws intraday really are challenging, as well as the huge shifts from one day to the next.

I see a few charts with some promise and I'm really hoping I can build some positions for at least a few days, but in this environment the best way to get burned is to trade big and bold.

Have a good evening. I'll see you tomorrow.

As of the time of publication, De Porre had no position in the stocks mentioned.

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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.