The strong open was sold aggressively. The indices are turning red, and breadth is sinking. Oil- and gold-related stocks have turned positive while retailers, Internets, drugs and chips are down.
Keep in mind that window-dressing pressure often fades before the last day of the month. The big funds want to paint a pretty picture in their portfolio, but they don't want to be too blatant about it.
I've talked quite a bit about oil and gold lately and continue to watch those sectors carefully. I particularly like the way gold is setting up and have be increasing my exposure in the streeTRACKS Gold (GLD - commentary - Cramer's Take) and in some individual stocks such as Kinross Gold (KGC - commentary - Cramer's Take) and Birch Mountain (BMD - commentary - Cramer's Take). We'll see how golds develop, but I believe they may be setting up for a multimonth move.
At the time of publication, De Porre was long GLD, KGC and BMD, although holdings can change at any time.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Birch Mountain to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
P.S. Will you be there when Cramer makes his next move?
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James "Rev Shark" DePorre is the founder and CEO of Shark Asset Management, an SEC-registered investment advisory firm. 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 to send him an email.
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