Wednesday, July 23, 2008

today - chk chk chk chk chk

About Shark Watch

Wednesday, July 23 - 4:50 PM

Afternoon Comments

Even though the financials finished 0.40% lower, it was their first day in the red after a remarkable 31% run. Meanwhile, industrials, tech and consumer discretionary each posted decent gains while the continued pullback in oil put more pressure on energy and materials. As such, while the gains for the averages were modest, it was another strong day for the bulls.

Of course, like we mentioned this morning, this recent run is starting to get a little long in the tooth. With energy names taking a beating lately and the broader market start to get a tad oversold, we suspect that it won’t be long until we see a reflexive bounce in oil and commodity related stocks. The thing that really needs to happen is for some new leadership to emerge. Big-cap tech acted a little better today, but we need to see some sustained action there. If this rally is going to turn into something more, then new groups will begin to rise to the top. Our job is to pay attention and respond when that happens.

Have a great evening and we will see you tomorrow.

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