The intensity of the buying has finally slowed a bit, but we still have better than 2-to-1 positive breadth, which indicates that there is still anxiety about adding some long exposure. We have leadership today in some of the chips and old technology names such as Ciena (CIEN - commentary - Cramer's Take) and Corning (GLW - commentary - Cramer's Take). That is probably a function of traders trying to find some new ideas as oils and commodities have run away recently.
I've heard from a number of traders recently about how the frustrated they felt on Friday and Monday when we had such a strong move. I know exactly how they feel. Between having to do some traveling and wanting to start off the new year right, I was not mentally prepared to jump in the way I would have liked. I don't think I've ever heard so many complaints, and it's probably due in large part because last year was so lousy and hopes are high for doing better in 2009. That probably also is some of the psychology behind the momentum we have had in the first three days of the year.
Just keep in mind that the nature of trading is that you will make a lot of mistakes, and sometimes they will cause you a lot of anxiety. The key is to just keep at it and be confident that you will also make some good choices, and, in the long run, you will prevail if you don't give up.
The reason trading can be so very lucrative is because it isn't that easy. It takes effort over an extended period of time to be rewarded, and there will be plenty of setbacks along the way.
P.S. CRAMER: KASS'S CALLS "RIGHT AS RAIN"
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Rev Shark Blog Sustained Momentum 1/6/2009 10:19 AM EST The underinvested are increasing exposure.
Rev Shark Blog Don't Trade on Hope 1/6/2009 8:42 AM EST Seasonal strength has many charts looking stretched to the upside.
Rev Shark Blog Profit-Taking Replaces Santa 1/5/2009 4:24 PM EST Will the end of seasonal positives lead to aggressive selling?
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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