Our brief attempt at a bounce fizzled, and we are now marking time as the day winds down. There aren't just a lot of compelling reasons to load up right now, and when confidence is shaky, market players are more hesitant to carry exposure over the weekend in case bad news hits.
On the other hand, when we've had a poor week and shorts have made some money, they will often lock in gains in front of the weekend. So that tends to offset those who are worried about holding long.
I don't see any edge at the moment and am going to close out the day very defensively positioned. I'm still hopeful we might get a bit of a Santa Claus rally to conclude the year, but I'm not going to rush to position for that until I see some better indications that it is developing.
As it stands right now, we are still in very precarious technical shape and the mood isn't intensely negative enough to give us a bottom. Sometimes the best thing to do is nothing, and this is one of those times.
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.
Rev Shark Blog Looking on the Bright Side 12/14/2007 11:55 AM EST The thinking is that things have been pretty bad, so they're due to pick up.
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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