We have a very interesting battle going on this morning, with a real mix of fundamental factors at work. The bulls have the Buffett railroad buy, the Black & Decker (BDK - commentary - Trade Now) acquisition, OK economic news and a market that is a bit oversold. The bears have weak action in European banks, a stronger dollar, a downgrade of semiconductors, a lot of broken charts and a market that isn't very excited about the good news.
So far, the bulls are winning the battle. We have been inching up slowly, and breadth has improved nicely. The stronger dollar doesn't seem to be having much impact on gold or commodity- and oil-related stocks, and it is not at the lows of the day, which is helping quite a bit.
Small-cap charts have been destroyed lately, but there are many that are oversold and ripe for a little bounce. If we continue to hold up for another hour or two, I'll be looking to add a few buys, but I want the bulls to show me they have some resolve first.
At the time of publication, DePorre had no positions in stocks mentioned.
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Rev Shark Blog Look Out for a Rocky Ride Down 11/2/2009 4:36 PM EST A downside trend is developing, but we should expect some surges that will make it tricky.
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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