Crude oil is strong this morning on news of an explosion at a Nigerian pipeline and a weak dollar is boosting commodities. The weak-dollar plays -- gold, oil, coal, steel, etc. -- are strong this morning, while the big-cap technology favorites like Research in Motion (RIMM - commentary - Cramer's Take) and Apple (AAPL - commentary - Cramer's Take) are off to a slow start.
The market has had a tendency lately to shake off weakness in the morning and gain strength throughout the day. So, I'm not too quick to react to this opening action. It already looks like dip buyers are starting to show up, and I have no interest in trying to short the indices until they are less confident.
It has been interesting how the market recently rallied supposedly because oil took a dip, but seems unperturbed when it is strong like it is this morning. That is a pretty good example of the optimistic mindset that has been dominating the market lately. All news is good news right now. At some point, that illogic will correct, but it doesn't pay to fight it until the price action starts to shift.
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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