More Opportunities Will Come Our Way

It was obviously a very good day for the overall market. The point gain was big, breadth extremely strong, and a lot of stocks were up by huge amounts. Unfortunately many folks, including me, were surprised by how strong the action was, and that probably helped to intensify it as they scurried to not be left behind. I've never done well chasing big moves on light volume, but that is what you had to do today to participate.

Quick flipping has been the best approach to this market for quite a while, but if you have taken that approach the last few days, you found yourself on the sidelines as some groups such as bulk shipping, infrastructure, steel and oil kept running straight up. The nature of what works best in the market changes all the time, so we need to constantly adapt if we want to perform well. At times it is very hard to do that as quickly as you should, and sometimes you will simply by left on the sidelines.

I came into the day expecting it be fairly quiet. Ironically, my opening post this morning was about staying open-minded, yet I let me expectation of a relatively benign day keep me from being aggressive. That is a frustrating way to start off the year, but that is trading, and all you can do is move on and look for the next opportunities.

For some reason I don't think that today is going to be our last chance to ever buy stocks. In the bigger scheme of things, this is technically positive, even if you weren't fully invested to enjoy it. The charts have been looking much better, and the key now will be that dip-buyers emerge on pullbacks. Assuming of course that we ever pull back again, which apparently is questionable in the minds of some of the buyers today.

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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.