The overall indices are mildly mixed, with the Dow down and the Nasdaq up, but under the surface, there continues to be some dramatic action in various sectors. Financials continue to jump, as the shorts are being squeezed like an orange. Gold, oil, coal and agriculture continue to see momentum traders hit the exits, as their breakdown goes on. Retailers were surprised by an ugly warning from Costco (COST - commentary - Cramer's Take), but technology stocks are acting better and the big-cap technology names are leading, with Google (GOOG - commentary - Cramer's Take), Research in Motion (RIMM - commentary - Cramer's Take), Apple (AAPL - commentary - Cramer's Take) and Baidu (BIDU - commentary - Cramer's Take) all attracting attention.
I started a small short in the financials for a trade, but right now the momentum is red hot in that sector, and I'm in no rush to get aggressive there. I have a few other trades going, but the way sectors have been jumping around, you have to stay short term. One group I'm looking at right now is bulk shippers, which have been finding support and are lagging other transports.
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.
RSS FEEDS
PODCASTS
