The indices have perked up nicely and are trading in positive territory, but breadth remains quite poor, with about 2,500 advancers to 3,650 decliners. That tells us that the rally is narrow and being led by bigger-cap stocks. With earnings for the big boys coming up soon, it makes sense they would see more attention today.
There are some big movers in the ultra-small-caps as traders look for action when there aren't a lot of great chart setups. If you can't find good charts, you jump on the things that are moving, and that is what we're seeing.
I'm starting to get more interested in oil-related plays and took a nibble of the Oil Service HOLDRs (OIH - commentary - Cramer's Take) to watch. I don't think the recovery there is going to be fast or easy, but there should be a tradable bounce developing soon.
At the time of publication, De Porre was long OIH, although holdings can change at any time.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Seems Like a Sentiment Shift 1/10/2007 1:06 PM EST It looks like we're headed into 'sell the rally' mode.
Rev Shark Blog Apple Shines Through Chaotic Action 1/10/2007 11:03 AM EST The big negative is that breadth is quite poor, with only chips showing some lift.
Rev Shark Blog Stocks to Your Emotional Rescue 1/10/2007 8:37 AM EST Watch the emotions roiling the markets. Also, how to play what could be a rough day.
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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