Commodities Get Their Turn in the Crusher

The indices finished with some decent gains on good breadth and high volume, but the action under the surface provided plenty of drama. Once again, energy- and commodity-related stocks were crushed while the love affair with financials continued. Financials cooled off a bit after a midday spike, but energy- and commodity-related stocks just got worse as the day progressed.

The selling in the energy- and commodity-related stocks is now starting to resemble what happened to financials. The big difference is that the fundamentals of most of these stocks are so much better than anything the banks or brokers have to offer. Given the intensity of the selling pressure, some sort of relief bounce should be forthcoming soon, but just like with financials, the key is the timing.

Most of the rest of the market was a mixed bag. A warning from Costco (COST - commentary - Cramer's Take) hurt some retailers, but the sector held up fairly well, and technology stocks continue to be mixed. The big-cap tech stocks were a bit better, but we still aren't see any good leadership there.

Amazon (AMZN - commentary - Cramer's Take) just issued a very strong report after the close, and that might cause a little positive sympathy, but usually AMZN is seen as fairly unique. I imagine the good report there may have been due in part to people driving less and shopping more online.

The bulls have the right things working for them at the moment with lower oil and relief that banks aren't far worse. How much further than can run us up without some new leadership is the big question, especially if either oil or financials reverse their recent trends.

Have a good evening. I'll see you tomorrow.

At the time of publication, DePorre had no positions in stocks mentioned.

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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.