• 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
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Markets Are Finally Oversold

But traders are still in a "sell the news" mindset.
By JAMES "REV SHARK" DEPORRE
Apr 24, 2018 | 04:34 PM EDT
Stocks quotes in this article: GOOGL, AMZN, FB, PAGS

The market has been struggling since it hit a short-term top last Wednesday. The selling accelerated today as market players reacted poorly to Alphabet's (GOOGL) earnings. Worries about the 10-year bond yield breaking the 3% mark grabbed the headlines.

While there are some obvious negatives as interest rates rise and stocks react poorly to good earnings, the main issue the market is struggling with is a poor technical environment. The indices have lost their momentum and we have had three failed bounces now since the top in late January. The price action is not inspiring confidence in buyers.

It is important to understand that the news flow is driven more by the price action than the other way around. Interest rates mattered much more now because stocks are acting poorly and there was an inclination to sell the Alphabet earnings news because the conditions for upside were not vey good.

The good news is that the action today had the feel of a 'give up'. A number of stocks were dumped for no other reason than the fact that there were already acting poorly. Once Amazon (AMZN) rolled over and took out its 50-day simple moving average, sell stops were triggered and it was dumped because of the poor price action.

The good news is that things are now a bit oversold but the bad news is that there really isn't any good technical support. The 200-day simple moving average is lurking for the S&P 500 but it is not very strong.

We have quite a few more earnings reports coming up including Facebook (FB) tomorrow night. This market is in a 'sell the news' mode right now but it has done so much selling of news that it may actually bounce pretty soon.

As I've been discussing, this is a tough market right now and it is hard to put money to work. There were some good intraday bounces like PagSegura Digital (PAGS) which I mentioned earlier today, but this is not a market that is going to forgive your mistakes.

Have a good evening. I'll see you tomorrow.

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 PAGS.

TAGS: Investing | U.S. Equity | Technology | Earnings | Stocks

More from Technology

Can Nvidia Rally and Help the Tech Sector Recover?

Bruce Kamich
Jul 5, 2022 3:00 PM EDT

Why Tuesday could mark the start of a turnaround.

Tesla's Charts Are Resisting a Downside Break

Bruce Kamich
Jul 5, 2022 1:54 PM EDT

Here's what aggressive traders could do.

Is Tesla Spinning Its Wheels?

Ed Ponsi
Jul 5, 2022 11:30 AM EDT

In addition to company-specific issues, Tesla is also fighting a tough macro environment.

EPAM Systems: Is It Time to Buy or Sell?

Bruce Kamich
Jul 5, 2022 9:32 AM EDT

Here's how I see it.

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Bob Lang
Jul 3, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

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

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 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