• 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
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Daily Swing Trade Archive
    • Income Seeker
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Renting, Not Buying

I'm playing the bounce and taking on a few trades.
By JAMES "REV SHARK" DEPORRE
May 16, 2012 | 10:50 AM EDT
Stocks quotes in this article: LNKD, VVUS, AMRN

Oversold bounce action is kicking in led by Google (GOOG), which some view as the best sympathy play on the Facebook (FB) IPO. Breadth is quite good as it approaches 3 to 1 positive, and you can see how the gloomy trading of the last few days has caused some scrambling for long exposure.

The biggest danger is news out of Europe, but with the Greek election a month off and growing acceptance of the possibility that they may leave the European Union, the bad news may already be discounted to some degree.

Another problem is this recent market breakdown has created quite a few "stuckholders" who will be happy to escape some painful positions into strength. The possibility that could set off another V-shaped bounce seems remote without the assistance of the Fed and further quantitative easing. We may actually have to deal with a market driven by human emotion, rather than a flood of liquidity.

I'm trying to play this bounce and have taken trades in a few things, such as LinkedIn (LNKD), which I believe will have some Facebook sympathy. I also like how biotechnology has been holding up lately, and I added VIVUS (VVUS) and Amarin (AMRN), which are among the better charts that I see.

I'm definitely a renter rather than a buyer, and I'll be keeping very tight reigns on all positions. However, the market is due for a little relief action and we might as well take advantage. Just don't be too fast to start thinking it's made a major low.

http://realmoney.thestreet.com/quote/

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 LNKD, VVUS and AMRN, although positions may change at any time.

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

More from Technology

Who Will Be the Winners in the Increasingly Crowded Streaming Services Battle?

Chris Versace
Feb 18, 2019 10:31 AM EST

How many streaming services do we really need?

Why Nvidia Might Be Able to Deliver on Its Bold Guidance - Tech Check

Eric Jhonsa
Feb 15, 2019 1:26 PM EST

Recent game reviews bode well for Nvidia's second-half gaming GPU sales, while heavy data center spending by cloud giants bodes well for its server GPU sales.

Should Mobility Businesses Be Valued as Car Companies or as Tech Companies?

Jim Collins
Feb 15, 2019 10:00 AM EST

Investors had better be ready for new types of combinations between automotive and tech companies.

Jim Cramer: Nvidia and the Driving Need For More Computing

Jim Cramer
Feb 15, 2019 7:57 AM EST

Things are about to normalize and they are going to normalize in gaming first and then the data center next.

Alibaba Still Isn't Shy About Opening Up Its Checkbook- Tech Check

Eric Jhonsa
Feb 14, 2019 3:39 PM EST

The Chinese e-commerce giant just took a stake in a video platform, and is reportedly in talks to buy a stake in a German retailer's Chinese arm.

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

  • 04:01 PM EST KEVIN CURRAN

    Pepsi Kicks off 2019 on a Positive Note

    Pepsi's earnings may not have been immaculate, but...
  • 10:08 AM EST BOB LANG

    Rolling up the Arista

    on Tuesday this week I posted a trade idea here an...
  • 08:11 AM EST KEVIN CURRAN

    Pepsi Earnings Call Notes

    As my first article is in edit, here are some sele...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

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