The day is winding down and we are seeing some profit-taking now. Breadth has not been that great today and is only slightly positive, but volume is looking pretty good and the strength in small-caps, Internet, retailers and technology is a positive. It is somewhat ironic that Intel (INTC:Nasdaq), which is losing business to AMD (AMD:NYSE), is trading up from its weak open, while AMD is trading sharply down after a gap open. It just goes to show that the stock market game is about emotions and psychology more than fundamentals and numbers.
A lot of readers have been questioning my insistence lately that negativity is high and that market players are poorly positioned for a strong move by the Nasdaq. I continue to feel that way and the action today seems to be supportive of my thinking. It is going to be interesting to see how retail investors react Monday morning if we have a good close today. Also keep in mind that there are lots of big funds scrambling to catch some performance points, and they tend to chase strength of this sort.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Long Side Looks Tasty 3/3/2006 10:25 AM EST After some profit-taking on Intel, the market looks ripe for some buying.
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.
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