We have a little strength in biotechnology, and gold is up, but other than that, all the major sectors are trading down. Breadth is better than 2:1 negative, and volume is fairly heavy. There is very little working on the upside and given the bounce we had, a pullback is the path of least resistance.
I'm sticking with some index and sector shorts and a few small contrarian plays in energy. My small-cap trades have to be almost pure daytrades to work, and that is no way to put any money to work. Outside of that, this market is just too tough to be doing anything significant but that is the nature of bear markets and its better not to fight it.
Rev Shark Blog Panic in Energy 7/24/2008 11:27 AM EDT A failed bounce attempt once again puts the sector on alert as the race lower continues.
Rev Shark Blog Traders Looking for an Opening in Energy 7/24/2008 10:27 AM EDT Money is slowly moving out of financials and into energy stocks, but the setups aren't great.
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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