Oil and oil stocks are swinging around wildly today, and that has left the market quite confused. We had a big reversal in the Oil Services HOLDRs (OIH - commentary - Cramer's Take) from a weak open, and now it's under a little pressure again as news hits that the Senate has approved a plan to halt additions to the Strategic Oil Reserve.
The market has been very keyed to oil lately. It didn't much matter that oil was strong as the market bounced off the March lows, but now we seem to be much more sensitized to the price swings and the media's convenient explanation for what is happening is that oil prices are up or down.
Nonetheless, we are seeing quite a bit of volatility, and that is making for some good trading in oils and other sectors like solar energy if you are willing to move fast. Coal is looking strong today, and I've been nibbling at Walter Industries (WLT - commentary - Cramer's Take) in the sector. I'm keeping time frames very short as I continue to feel that the broad market is getting closer to a more significant pullback.
Rev Shark Blog Bulls Continue to Supply Support 5/13/2008 10:55 AM EDT We won't see the expected pullback until the longs get punished a bit.
Rev Shark Blog Trade What You See 5/13/2008 7:51 AM EDT If you stay with a theory that isn't working, you can miss out on huge gains.
Rev Shark Blog Bulls Seize the Market by the Horns 5/12/2008 4:38 PM EDT Traders made aggressive buys of big-cap tech, but keep in mind that volume was very low.
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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