Just like yesterday, the market was a bit soft in the early going and looked like it might roll over, but the buyers stepped up and now have the bears on the run. I think we have too many folks who are looking for the market to pull back, and they are getting squeezed by very tenacious buyers.
There is no shortage of reasons why this market should pull back, but as I wrote this morning, we have to trade what is in front of us ,and what we have is some pretty good price action. Breadth is flat and volume is still pretty light but better than yesterday. However, all that matters right now is that we have some stocks acting well, and that is attracting buyers who don't want to be left out.
Solar energy stocks are the best group out there today, and I am trading four or five of those. Metals and mining also looks pretty good with some breakouts in that sector, but a lot of these are a bit extended.
My trust level is low, but I'm being opportunistic. Trying to anticipate when this run ends is a very difficult game, so I'm going to try to stay with the momentum until I see it actually cooling off.
Rev Shark Blog Jumpy Oil Roils the Markets 5/13/2008 12:56 PM EDT Volatility is high, and I'm locked into the short term.
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.
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.
RSS FEEDS
PODCASTS
