The action is very disappointing this morning. A couple of minor bounce tries were turned back, and the folks who were chasing yesterday are having second thoughts today.
The obvious culprit is the poor report from Oracle (ORCL). This is the fourth or fifth major company to announce shortfalls recently, and it is causing real concerns that fourth-quarter earnings are going to be a problem. The big thing this market has had going for it the last couple of years is that corporate earnings have been solid. For some reason, we are now seeing signs of major slowdowns and it is adding to the nervousness that already exists.
We'll see if the buyers can find their footing, but what has helped to create these V-shaped bounces in the past is the ability to forget the negatives. This time we are finding new things to worry about and that is keeping money on the sidelines.
We are finally seeing a little better bounce as I write, but the dip this morning is going to undermine confidence. We need to hold up and consolidate for a while to regain the trust of the bulls.
I took some stops on positions and haven't done much new buying. C&J Energy Services (CJES) is still on my radar, and I like the way Magnum Hunter Resources Corp. (MHR) is developing, but the market needs to cooperate.