Can the Bulls Continue Their Charge?

Those who are blessed with the most talent don't necessarily outperform everyone else. It's the people with follow-through who excel.
-- Mary Kay Ash

The big question we face this morning is whether the market can build on yesterday's bounce. We never get the spike in the VIX or other indications of panic, but we did finally get the oversold bounce that so many were looking for. We are still somewhat oversold so a further bounce would certainly not be a surprise, but since the short-term market top in May, the bounce attempts have been abysmal.

In the S&P 500, every decent positive day since May 19 has failed to see any further strength. In fact, the last time we had two big positive bars in a row on the S&P 500 chart was back in mid-April.

Given how oversold we are and that financials finally turned up, I'm a bit optimistic about some further upside, but clearly the recent weakness of bounces is not a good sign, and crude oil is going to continue to be an issue. I don't expect oil to continue to go straight down, and the market is going to wrestle with that.

Overseas markets did well last night, but we have some weakness this morning as Iran test-fires missiles and makes some troubling statements. The good news is that the first earnings of the quarter from Alcoa (AA - commentary - Cramer's Take) were well received, and the stock is trading up.

I have an appointment this morning and will check in a little later.

No positions.

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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.