A Late-Day Jolt to a Disorderly Market

We probably could have managed a crazy final hour of trading without any help, but President-Elect Obama really helped to juice things with the announcement of his economic team. I'm not sure there is anything particularly surprising about the folks being named, but it helps to remove uncertainty, and that is a benefit in the short term.

Before that news hit, there was tremendous pressure on the financials, and the market was obviously worried about some sort of dramatic event there, as Citigroup (C - commentary - Cramer's Take) is melting down, much like Lehman and Bear Stearns did before blowing up. The shorts were obviously leaning a little too hard and were caught by surprise when the Obama announcement was made, but it goes to show how irrational this market is acting lately. The news really didn't change the short-term issues for financials.

The big winner today was gold, which stayed strong all day as it moves out of a solid base of support. Obviously, market players are looking beyond the current problem of deflation and are anticipating problems with the dollar down the road.

The market continues to be way too volatile to attract folks who want to build individual positions. The ETFs are driving everything. It is casino-like the way some ETFs like the UltraShort Real Estate (SRS - commentary - Cramer's Take) and ProShares UltraShort (EEV - commentary - Cramer's Take) are moving. This is not an orderly market. That is great for extremely short-term trading, but it is not going to attract the big-money buyers we need for a major turn.

Next week we have the Thanksgiving holiday and that has historically produced some positive action. I think there is some likelihood of some major news in the financials, and that is what will determine how things play out.

Have a good weekend. I'll see you on Monday.

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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.