Traders kept their emotions under control and didn't chase the gap-up open this morning. We had some quick flipping, and now we are pulling back and trying to find support. While breadth is quite good, there are a number of key stocks acting poorly, including Goldman Sachs (GS - commentary - Cramer's Take), Google (GOOG - commentary - Cramer's Take) and Apple (AAPL - commentary - Cramer's Take).
The main strength here is mainly commodity related because of the proposed infrastructure build in China. One group I'm looking at on that theme is bulk shippers, which have been slaughtered later, and are now finally seeing a contraction in new ship orders which should help get supply under control. I'm nibbling at a few in the group for some quick trades.
Outside of commodities, which are trying to hold, the action is not very impressive so far. Market players are obviously skittish and are skeptical about the idea we may have seen a low. I wouldn't mind seeing some calmer action but I'm concerned about the level of selling we are seeing in the very early going.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog It's Only a Relief Bounce 11/7/2008 4:21 PM EST Look closer and you'll see that we only had a breakdown and a recovery.
Rev Shark Blog Late-Day Spike Up? 11/7/2008 3:27 PM EST We are approaching the lows of the day, but I would not be surprised to see a spike back up.
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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