Financials are finding support, and market players are chasing select momentum names, which is helping to cover up the weak breadth and the fact that all major sectors are in the red.
Traders are anxious for some action, so they are bottom-fishing some of the financials, which are looking washed out, and going after the big-cap technology, solar energy and fertilizer stocks that had so much momentum when the market was acting well.
The only real positive on the macro side right now is that it has been so tremendously negative that we are due for at least a temporary respite.
That is what is helping to keep things from falling more severely, but this is a very skittish market, and it won't take much to turn the tide back down.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Market Keeps Singing the Fed Blues 12/14/2007 10:27 AM EST Breadth is poor and upside is limited as inflation data heighten the lingering Fed disappointment.
Rev Shark Blog Stagflation Rearing Its Ugly Head 12/14/2007 8:48 AM EST The Fed will be wary of more cuts, and this will hurt stocks.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and 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.
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