This market continues to be extremely tricky. We had a gap-and-go this morning on the earnings news, but Cisco (CSCO - commentary - Trade Now) itself isn't acting that great. This is similar to what happened when Intel (INTC - commentary - Trade Now) reported and trended down most of the day following a gap up while the rest of the market held up.
We have had a tendency lately to start off strong and then struggle around midday, but so far breadth is very strong, with more than 4,000 advancers to 1,100 decliners. Biotechnology, oil and steel are leading, while retailers and gold are lagging.
We are stalling out around yesterday's highs so far, and with the jobs report coming tomorrow, I am doubtful the buyers will be overly aggressive here. I'm still inclined to think that we're not going to see another V-shaped straight-up bounce, but as I said yesterday, I'd give the bulls some room before I'd be more aggressive on shorts. Market character has changed enough recently that I question whether the pattern of very vigorous recoveries will persist. I'm not going to fight the bulls at this point, but they are going to need to prove that they still have the same energy that drove us all summer.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Buyers Stick to Their Guns 11/4/2009 2:58 PM EST Breadth is very good today -- now all eyes will shift to Friday's jobs report.
Rev Shark Blog A Setup for Shorts 11/4/2009 4:10 PM EST Even benign news gets sold, and we face a jobs report on Friday.
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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