For a little while, it looked like our bounce was going to fizzle out yet again, but the buyers regrouped and ended up taking us out at the highs with some good gains. A bounce in financials, weakness in oils, and a technically oversold market was the perfect combination to get things running a bit.
Breadth was good and volume heavy. Now the question is whether we get some follow-through or not. While I certainly wouldn't be too trusting given how badly broken most charts are, we can probably manage a bit more upside before the flippers start taking more gains and the shorts start to reload. Keep in mind that we are going to run into overhead fairly fast and that lots of folks will be happy to sell if they can cut some recent losses. That is what makes a quick "V" turn so hard.
So we got the bounce, and all looks well. Just don't start drinking the "Worst is Over" Kool-aid once again. This market still has issues.
Rev Shark Blog Same Story, Different Day 7/8/2008 2:34 PM EDT Once again, the market cannot sustain a rally long enough to pull in the cautious money.
Rev Shark Blog Buyers Creep In 7/8/2008 12:48 PM EDT With financials finding support, some investors are coming out of hiding.
Rev Shark Blog Watch the Financials for the All-Clear 7/8/2008 11:44 AM EDT The market needs relief from selling, and the improving financial stocks will give the signal.
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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