And once again, what looks like the makings of an early rally loses steam and traps overanxious buyers. I discussed this Monday when it happened, and we are seeing an almost identical phenomena today. The bulls can't get enough traction to draw in the more cautious money sitting on the sidelines, and once we start to falter, there is a rush to take whatever small gains they may have.
The issue continues to be that we aren't getting enough downside pressure to really set the stage for a powerful reflexive bounce. Instead of being scared out on dips, the sellers are killing each little bounce.
As I mentioned earlier, I added some long exposure, and I am maintaining that. I do like that financials are holding and that oil isn't seeing too much of a bounce. The market is just making things difficult for those who want a nice smooth bounce. I think we are close to the end of being jerked around and a little relief is coming.
Rev Shark Blog Buyers Creep In 7/8/2008 12:48 PM EDT With financials finding support, some investors are coming out of hiding.
Rev Shark Blog Watch the Financials for the All-Clear 7/8/2008 11:44 AM EDT The market needs relief from selling, and the improving financial stocks will give the signal.
Rev Shark Blog Looking for a Reason to Bounce 7/8/2008 10:23 AM EDT Traders look willing to step in, but the financial sector is a roadblock.
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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