Not Throwing Bull Out With Bear Water

An ugly close negated what was setting up to be an impressive reversal day after the bad news from Intel (INTC:Nasdaq) this morning. Instead, we had a big U-turn, and ended up back where we started this morning.

That is a poor technical pattern, but the bigger picture remains the same. The bulls will argue that this was just some late-Friday afternoon games, and smacks of desperation by the bears to keep this market contained.

The bears will tell us that the market is still doomed and this late selloff is simply recognition by some of that fact.

Once again, the vast majority of my holdings continue to look quite healthy, and I'm not inclined to do any major selling at this point. There is no question this is a choppy market and is causing frustration for bears and bulls alike. But I still have not seen action bad enough to cause me to head for the safety of cash.

The fact that Intel's much anticipated warning is now out of the way, and the stock closed down only 20 cents is a positive. Next week we will have to watch very carefullly if the Intel news might be the catalyst that gets some rotation going in technology.

I believe the conditions are still quite ripe for that to play out, but such transitions are always painful processes. I hope you had a good week. Do something fun this weekend. I'll see you on Monday.

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James "Rev Shark" De Porre is a self-taught trader who primarily trades for his own account from his home on Anna Maria Island, Fla. He is a member of the Michigan Bar Association and a former tax attorney and CPA. De Porre holds business and law degrees from the University of Michigan. He was formerly the host of America Online's The Shark Attack and presently operates SuperTraders.com. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.