It is going to be very interesting to see whether the dip buyers step up before the close today. This selling is a bit more aggressive than what we've seen lately, and many of the momentum favorites are being hit particularly hard. On my list of big-cap momentum, everything is down except for Sears (SHLD - commentary - Cramer's Take), which is losing steam quickly.
The single biggest problem this market has right now is complacency. No one thinks the bears can do a thing, and even a nasty selloff like the one we are seeing now doesn't create any real worry, because we all know the bulls will bail out the market once again.
Maybe they will continue to do that, but until there is a little fear of the bear in the air, it's going to be tough for the market to set up for some upside. I'm rooting for the bears to show some backbone because it will give us some better trading. The best thing that could happen is the dip-buying bulls getting stung for a change.
Rev Shark Blog Riding Gold on the Long Side 2/9/2007 10:31 AM EST Gold is up sharply again; networkers continue to slip.
Rev Shark Blog Don't Expect Winning Bulls to Slow Down 2/9/2007 8:53 AM EST Your best strategy is to profit from the trend with some short-term, long-side plays.
Rev Shark Blog Embrace the Contrary 2/9/2007 1:27 PM EST The ability to hold different viewpoints at the same time is key in trading.
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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