• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Healthcare

This Market Badly Needs a Rest

It would be a longer-term positive if the overbought conditions are alleviated.
By JAMES "REV SHARK" DEPORRE
Jan 29, 2018 | 10:59 AM EST
Stocks quotes in this article: IWM, FB, AAPL, AMZN, NFLX, GOOGL, TWTR, SGMO, GBT, DNLI, IOVA

We have a sluggish start to an eventful week, with breadth solidly negative, with about 2100 gainers to 4500 decliners. New 12-month highs are down to around 500, but most surprising is a jump in new 12-month lows to 150 or sol.

The dip buyers are still active and have the Russell 2000 ETF (IWM) back in positive territory, but weakness in semiconductors is keeping the Nasdaq 100 in negative territory. Biotechnology continues to be a key momentum group.

The FAANG names -- -- Action Alerts PLUS holdings Facebook (FB) and Apple (AAPL) , Trifecta Stocks name Amazon (AMZN) , Netflix (NFLX) and Google parent Alphabet (GOOGL) -- are holding up well, with the exceptions of Apple and Facebook, which are dealing with news issues.

The biggest issue this market faces is that the indices and many stocks are extended and in need of rest. The strong momentum has offset the overbought conditions so far, but it is becoming more difficult, especially after the frothy action on poor breadth that we had on Friday.

My key market timing indication is my P&L and the action in individual stocks. There are a few things pulling back today, but it looks more like consolidation after a good run, rather than a rush for the exits. There are plenty of stocks that I'd be happy to buy on weakness at this point. The biotechnology action continues to look very healthy.

Twitter (TWTR) has some strong momentum, but it's mainly biotechnology names like Sangamo (SGMO) , Global Blood (GBT) and Denali (DNLI) that are showing up. My Stock of the Week, Iovance Biotherapeutics (IOVA) , is working on a high-level base.

Technically, what we have to watch for today is a weak close. There are intraday lows hitting as I write, and breadth is the worst in a while, so there is some need for caution. But this market is badly in need of a rest, and it would be a longer-term positive if the overbought conditions are alleviated.

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, Rev Shark was long TWTR, SGMO, GBT, DNLA, IOVA, although positions may change at any time.

TAGS: Investing | U.S. Equity | Healthcare | Technology | Consumer Discretionary | Markets | How-to | Stocks

More from Healthcare

UnitedHealth Group Charts Appear Toppy Ahead of Earnings

Bruce Kamich
Jan 19, 2021 8:53 AM EST

The technical indicators of the health benefits concern are not sending strong signals at present.

Moderna Now Looks Like an Effective Long Trade With Few Side Effects

Bruce Kamich
Jan 14, 2021 12:06 PM EST

MRNA has corrected its big November rally and now looks ready to start a fresh advance, according to the charts.

Pacific Biosciences Reaches Our Price Target: Now What?

Bruce Kamich
Jan 13, 2021 12:19 PM EST

Let's check out the charts and technical indicators.

Emergent BioSolutions Is Looking Stronger

Bruce Kamich
Jan 12, 2021 10:37 AM EST

Here's an update on EBS shares.

Danaher Could Trade Higher

Bruce Kamich
Jan 11, 2021 2:50 PM EST

I do not find enough technical reasons to recommend new long positions at this point in time.

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

  • 11:09 AM EST GARY BERMAN

    Is Copper About to Turn to Rust?

    Below is a very long-term copper chart.  As you...
  • 08:02 AM EST GARY BERMAN

    Tuesday Morning Fibocall for for 1/19/2021

    SPX (Long-Term View) The 1/8/21 high @ 3826.69 i...
  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 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