Buyers Eschew Technical Analysis

We have a good example today of the old saying, "Don't short a dull market." We continue to work steadily higher in extremely thin trading. Breadth is very good, with only the banking sector in the red. Leadership is coming from oils and chips, and we have good showings from retailers and biotech and technology stocks in general.

The big problem for those who want to be doing something this afternoon is that this light-volume move is coming on top of an already extended market. We have a lot of overhead resistance nearby, and we have arrived at this point on steadily slowing volume.

That does not provide a very good foundation for further upside moves, but the buyers obviously aren't interested in hearing about the TA rule book today.

I've made a few minor buys, and have a few very short-term trades going. But mostly I'm just watching and waiting for setups that will allow me to do something more aggressive.

I'm going to start the weekend a bit early today. Have a good weekend and I'll see you on Monday.

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James "Rev Shark" De Porre 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. De Porre 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.