• 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. / Stocks

There's Just Not Much Reason to Buy

There's a rolling correction under the surface of the market.
By JAMES "REV SHARK" DEPORRE
May 09, 2016 | 02:05 PM EDT
Stocks quotes in this article: TSLA, CLF, SLW, TCK, FB

Breadth is running positive and we are still seeing some signs of underlying support in this market, but the problem is that there isn't enough upside power to justify aggressive buying. Even if you aren't a momentum trader, you need some follow-through to the upside to make buys worthwhile. Too often in a tape like this, a buy will just sit there and do nothing.

One of the most notable things about the market right now is how many stocks have suffered very sharp drops in a short amount of time. Tesla (TSLA), Cliffs Natural Resources (CLF), Silver Wheaton (SLW), Teck Resources (TCK) and quite a few mining stocks have dropped 20% or more from recent highs. It is not evident in the indices as we have rotated into other names like Facebook (FB) and Amazon (AMZN), but there is a rolling correction under the surface. (Facebook is part of TheStreet's Action Alerts PLUS portfolio. Amazon is part of the Growth Seeker portfolio.)

The S&P 500 is working back to the opening highs, but I'm annoyed with this market and the limited opportunity it is offering. I have a few things that are inching up slowly, but the opportunities to deploy idle capital are very limited.

The fact that the indices are still holding up is giving the bulls something positive to focus on, but the very limited stock picking is preventing more positive sentiment. This market demands that we stay selective, but that is even harder when there are so few stocks offering entry points.

The bulls are holding us up, but that is all they are doing.

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

Shares of Xencor Could Be Bought on a 50% Correction

Bruce Kamich
Jul 1, 2022 11:59 AM EDT

Traders should remain patient.

Let's Size Up the Market's Prospects for the Second Half of 2022

Bret Jensen
Jul 1, 2022 11:30 AM EDT

The next six months can't be worse than the first six, can they?

In an Ugly First Half for Stocks, Value Was a Lot Less Ugly Than Growth

Jonathan Heller
Jul 1, 2022 11:00 AM EDT

A look at the Russell indexes shows that value stocks suffered in the first six months of 2022 but not nearly as much as growth issues.

Nuvalent Has Begun the Bottoming Process

Bruce Kamich
Jul 1, 2022 10:52 AM EDT

Let's check the charts and indicators.

You Can Invest in Micron, But Here's Why You May Want to Wait

Stephen Guilfoyle
Jul 1, 2022 10:15 AM EDT

MU reported earnings Thursday night and the guidance was shocking.

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

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • 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