Trading has gone from frenzied to comatose. Following the wild first 30 minutes of trading it has been a steady drip lower. Breadth has fallen to less than 4-to-1 positive from around 9-to-1 to start the day, which is still very strong but obviously many stocks have reversed from earlier highs. All major sectors are still positive, but most are off their highs. We just were a bit too overheated, too fast this morning and now we need to cool off again.
The market has shown strength into the close the last four trading days so I wouldn't be surprised to see the buyers step up once again, but we are losing energy and this morning's chasers are stuck, which will cause traders to look harder at selling into strength.
I sold down my long inventory quite a bit so I'm looking for some new buys into the close. With the strong start to the Thanksgiving week, I suspect that the bears are going to be even more gun-shy. I don't like how highly sensitive the market is to every move in the dollar, but all we can do is respect that fact and deal with it.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Weak Dollar Provides a Lively Open 11/23/2009 8:19 AM EST As long as the dollar is weak, the economy and everything else is a secondary consideration.
Rev Shark Blog A Flying Start 11/23/2009 10:11 AM EST We have so many big moves, it's hard to not sell into some of them.
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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