It is fairly quiet out there, as market players seem a bit confused about how they want to position themselves over the long weekend. The most significant action I'm seeing is weakness in oil stocks, while crude continues to hold up quite well. It is pretty clear that investors are getting a bit nervous about the sustainability of the momentum in oil stocks given that just about everything else has been hit.
Small-caps are showing some relatively weakness as they continue to play catch-up to the downside with the senior indices. That is being reflected in breadth which is quite poor. We do have a little bounce in financials and retailers, but there isn't much else out there.
I'm almost completely in cash at this point, and am doing very little other than some very short-term trades. I continue to look for some counter-trend bounce plays simply because the market is technical oversold, but I have no illusions that a meaningful bottom is about ready to occur.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog In This Environment, the Danger Is Hope 7/3/2008 9:32 AM EDT There are too many traders who continue to look for a bounce to be comfortable right now.
Rev Shark Blog Today's Ugliness Is the Good News 7/2/2008 4:38 PM EDT Days like these are the types needed to get us closer to a low.
Rev Shark Blog The Market As Slot Machine 7/2/2008 3:20 PM EDT There are too many variables bouncing this market around to place any big bets.
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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