After the big move on low volume we had on Friday, it shouldn't be too surprising that we have some profit-taking kicking in this morning. Energy, which led on Friday, is still holding up, but it is struggling to gain further momentum. Weakness is in banks, biotech, precious metals and steel. Bonds continue to weaken, but that isn't having much impact today.
The folks who were so willing to chase on Friday are now standing aside. I do think they will be inclined to do some dip buying as they seek to make up the performance that they missed on Friday. We are still dealing with some artificial seasonality, but that is going to end very quickly.
I have a few small caps of interest on my screens, such as Sequenom (SQNM - commentary - Cramer's Take), which I'm actively trading very small. There are more "bottom fish"- or "junk off the bottom"-type charts of interest, but it is still a market devoid of major leadership, which means that time frames should stay short.
At the time of publication, Rev Shark was long Sequenom.
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Rev Shark Blog It Won't Be Easy 1/5/2009 8:01 AM EST Keep plugging away -- it's the best way to ensure success.
Rev Shark Blog More Opportunities Will Come Our Way 1/2/2009 4:13 PM EST Even if you weren't invested enough to enjoy today's ride, we've still got a healthy setup.
Rev Shark Blog One Side of the Story 1/2/2009 2:29 PM EST The media's jubilation over the action today belies an ignorance of how people actually invest.
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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