The Bounce Lacks Energy

There's no major momentum and I don't see many compelling entry points.
Stocks quotes in this article: AAPL, PCLN, GOOG

We have a routine oversold bounce this morning and it isn't particularly lively.

Big-cap names like Apple (AAPL), Priceline (PCLN) and Google (GOOG) are leading, while small-caps and secondary stocks are doing little. Breadth is decent with about 3350 gainers to 1550 decliners, but there's no major momentum. Retail and chips are leading while precious metals and solar energy lag.

Though Tuesday's action produced plenty of red, many stocks are still extended and don't offer compelling entry points. We are in the middle area where momentum players are moving to the sidelines, but it's still too high for value buyers to take interest. Some of the worst air pockets in the market occur when momentum buyers exit and support disappears. That is the big risk now.

I'm developing a watch list of stocks I'm interested in on pullbacks, and I will stick my toe in at times, but I'm not feeling confident that we have good support levels.

In fact, I'm looking for the bears to sell into the bounce fast.

_______

More from James "Rev Shark" DePorre:

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 had no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Stocks

More from Stocks

This Inseego Breakout Is Enticing

Timothy Collins

Simply put, this one checks all my technical boxes, including price.

For Facebook, the Metaverse Move Is the Right Move

Timothy Collins

I'm not going to make a move in front of earnings, but if the company executes well on this, it's going to be huge for them.

Interest Rates Are Just Another Brick in the Wall of Worry

James "Rev Shark" DePorre

The market cooled following a weak bond auction, but don't read too much into the action.

To Know How the Fed Will Act, We Must Interpret Its Words

Tom Graff

Let's check out the Fed's two big goals for action -- higher inflation and maximum employment -- to see what we can realistically expect.

Lockheed Martin Is Ready to Break Out From a Huge Triangle

Bruce Kamich

Traders could go long LMT at current levels and any shallow dip.

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.

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