It's Going to Stay Slow

For the second day in a row the indices did very little but the action under the surface was mildly positive. Breadth was pretty good and there were some bounces in oil, commodities and big-cap momentum names like Google (GOOG - commentary - Trade Now), Goldman Sachs (GS - commentary - Trade Now) and Amazon (AMZN - commentary - Trade Now).

After the selloff on Friday through Tuesday, we were oversold and due for some sort of relief bounce but all we've really done is run in place. The churning is using up the buying power of the dip-buyers and sets the stage for things to roll back over again. Buyers should be anxious to snap up some of these bargains after these sharp pullbacks, but they are hesitant and that increases the chances that they will not stick with a bounce for long.

I'd really like to be more positive, but it is really tough trying to find new long trades here. The volume is light, the action is slow and most of the moves are bounces in broken charts.

I heard an awful lot of complaints today from traders who couldn't find much of interest. Unfortunately tomorrow is a summer Friday and is likely to be even worse. All we can do is recognize what is going on and not try to fight it.

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

At the time of publication, DePorre had no positions in the stocks mentioned.

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Know What You Own: Major financial stocks include JPMorgan Chase (JPM - commentary - Trade Now), Citigroup (C - commentary - Trade Now), Wells Fargo (WFC - commentary - Trade Now), US Bancorp (USB - commentary - Trade Now), Bank of America (BAC - commentary - Trade Now), Deutsche Bank (DB - commentary - Trade Now) and Morgan Stanley (MS - commentary - Trade Now). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

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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.