• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Cryptocurrency

A Bond Scare Finally Causing Some Downside Volatility

One thing to watch for this morning is how the action is likely to be index driven rather than individual stock driven.
By JAMES "REV SHARK" DEPORRE
Jan 10, 2018 | 07:58 AM EST

I always tried to turn every disaster into an opportunity.

--John D. Rockefeller

After a parabolic run to start the new year we finally have a news event that is causing a negative market reaction. The big news is that China may be considering cutting back its buying of U. S Treasuries. With the Fed already starting to unwind its binge of buying the pressure on bonds has grown to a point that the Bond King, Bill Gross, is proclaiming a bear market for bonds.

For many years the bears have anticipated that the market top would occur when many years and trillions of dollars of 'stimulus' started to unwind. The bears timing has been extremely poor but the action today is causing some excitement for the pessimists. This is the scenario that has been predicted for a very long time. Will it now gain traction?

While there is some anxiety in the air this morning the bears still face a significant hurdle in the form of the market structure. This market has been impervious to news flow for a very long time as the computer algorithms and aggressive short term players have found that buying the dip, no matter what, is the way to go.

Fear has not been an emotion that has been an issue for this market. If anything it has simply created opportunities for bulls that refuse to be shaken out.

Will this news today be a significant turning point? It is possible, but I doubt it. It actually is a positive that the frenzy of the first six trading days comes to an end. Many stocks are technically extended and need to reset. As I discussed yesterday the best thing that could happen is that the market consolidate as we head into earning season in the next few weeks.

One thing to watch for this morning is how the action is likely to be index driven rather than individual stock driven. Big players deal with this shift but playing the indices. The smaller stocks that have provided some great speculative trading are not going to be strongly correlated with the indices but may still suffer some loss of momentum.

Speaking of speculative trading, I discussed the recent trading in cryptocurrencies and blockchain with Bloomberg recently.

I'm excited about some downside volatility for a change. It may cause some short term pain but it is what's needed for a healthy trading environment.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, James DePorre had no position in the securities mentioned.

TAGS: Cryptocurrency | Investing | China | Stocks | Rates and Bonds | Markets | Cryptocurrency | Investing | China | Stocks

More from Cryptocurrency

In the Wild World of Crypto, a Wild Bitcoin Play Is the Best Call

Mark Abssy
Jan 26, 2023 1:24 PM EST

The situation for bitcoin investors right now is tough, but as we look at the crypto exchange-traded funds and the digital currency, I see one good 'option.'

Gold Is Now Shining Over Bitcoin

Carley Garner
Jan 24, 2023 12:15 PM EST

The crypto collapse and FTX fiasco has been a good reminder that the grass isn't always greener on the other side of the fence.

EXCLUSIVE: Billionaire Investor Leon Cooperman

Real Money
Jan 19, 2023 5:15 PM EST

Watch this hour-long private event with the legendary investor as he shares his views and outlook on the market, the Fed, stocks, crypto and much more!

Crypto Roars Back to Life, So Where's the Best Play?

Ed Ponsi
Jan 17, 2023 8:30 AM EST

Last year's huge drops in cryptocurrencies have been followed by nice moves higher so far this year, but will the rallies last?

It's Time to Toss COIN

Bruce Kamich
Jan 10, 2023 12:59 PM EST

As Coinbase sacks more workers, investors should steer clear of the crypto exchange.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:27 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

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

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.

FactSet 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.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login