We have a very dreary start this morning, and the bad part of it is that it just feels routine. There isn't any panic or high emotions. Market players are just disgusted and continue to dump stocks.
I've often written that bad markets tend to wear you out rather than scare you out, and we have a prime example of that going on right now. The problem is that there is no good way to time when this might finally come to an end. Technically speaking, we are still holding above the October lows, and recent volume has dried up as we pull back, so it wouldn't be too surprising to see the bulls make a stand soon and get something going to the upside. With the atmosphere so gloomy, a little short squeeze isn't hard to generate, as we saw Tuesday following the new mortgage bailout plan announcement.
Breadth is horrible at close to 4:1 negative and, of course, we continue to have no good upside leadership. Banks are showing a little relative strength and they could lead a bounce, but this is all very short-term stuff, so make sure you have your time frames firmly in mind.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Know Your Style 11/12/2008 8:16 AM EST It's OK to deviate, but be rational and keep your capital safe.
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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