Trust Level: Low

 | Mar 01, 2012 | 10:42 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

pcyc

,

FIO

This market has had a tendency to punish anyone who reacts too quickly to signs of trouble. The irony is that we are so stretched and in need of a little weakness that it is tough not to be vigilant and move fast at the first sign of trouble. We know this one-sided action won't last forever, and if we can time our exit right, it will pay off nicely.

Unfortunately, the problem with being highly reactive to market action is that there are many false signals. That is still much better than being anticipatory, but when you react to weak action and we immediately turn back up it can be frustrating.

So far, we have a decent bounce and little memory of yesterday. Apple (AAPL) is at its lows of the day and the ISM number was weak, but the dip-buyers are active and keeping a bid under the market.

Don't forget that Fed chief Ben Bernanke is coming up again, and his silence on further quantitative easing is what caused yesterday's action. Any comments about QE can move this market very fast.

I have a few trades going in Pharmacyclics (PCYC), Fusion-io Inc. (FIO) and a few others, but I'm not overly aggressive with any buying. The action in small-caps yesterday worried me and my trust level is low.

_______

More from James "Rev Shark" DePorre:

Columnist Conversations

Conclusion SSYS is one of two giants in the 3-D printing arena and is reporting earnings on November 5th, afte...
Market continues to hold onto impressive gains in the last day of a roller coaster trading month. This month ...
UPS is bumping up against a very heavy layer of resistance today. The stock's 1.6% gain has pushed shar...
The 244 area is the first major target off the 10/16 low. It's still a good idea to trail up stops as you go,...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.