We still have some significant weakness in banks, and gold is very strong, but the trading is a bit more sedate overall with the indices up mildly. Plenty of daytraders are still focusing on catching some quick moves in the indices using the ultra ETFs. Unfortunately, no individual stocks have decent charts, so they have nothing else to do but try to stay busy with the ETFs.
These ETFs seem to be the tail that is wagging the market dog lately, and these funds are causing some of the crazy intraday volatility. That is not going to change until this downtrend ends and we see some good individual charts to trade once gain. It makes for a tough market, but it is typical that we go through these sorts of phases where the normal things don't work very well at all.
Financials are starting to act a little better, but it sure is disturbing that even though the U.S. government has already spent many billions of dollars and tried all sorts of things to shore up our financial system, the banking sector still is struggling to find a low. You have to wonder how this market can get much going to the upside if all this government action is useless as far as helping banks stabilize.
P.S. Will you be there when Cramer makes his next move?
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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.
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