A strong open to start the new year feels like the triumph of emotion over logic. For the objective trader it's awfully tough to jump in here and hope we just keep on going. We may very well keep on running, but the smart move is to wait a little while and gauge how persistent the buyers are.
I've done some minor flipping of positions that are gapping up but am in no rush to aggressively fade this early strength. I do think we are setting up for a nasty dip at some point in January, but the bulls are likely to maintain control for a little while yet.
Good luck, and go get 'em.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Traders Clean the Slate 12/29/2006 4:25 PM EST Rev breaks out a virtual noisemaker and ends the year with a look toward next.
Rev Shark Blog How to Play the Remainder of the Day 12/29/2006 2:41 PM EST If you see any outright manipulation, try to take the other side for a trade.
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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