• 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. / Markets
  3. / China

Early Market Euphoria Monday Hits a Dead End

Sharp reversals in momentum names warrant close attention
By JAMES "REV SHARK" DEPORRE
Jun 4, 2018 Updated Jun 04, 2018 | 12:02 PM EDT
Stocks quotes in this article: BILI, MOMO, HUYA, IQ

The indices are building on Friday's gains and breadth is running quite strong but there are quite a few of reversals from highs in the early going.

For example a number of China names that I mentioned last week quickly reversed after a strong start. IQIYI (IQ) , HUYA (HUYA) , MOMO (MOMO) and Bilibili (BILI) are a few examples. Also, there is pressure in the biotechnology sector that had been performing well into a big cancer meeting this past weekend.

An intraday reversal after a euphoric start is going to require some defensive action. I've cut some names already and will cut more if the weakness persists.

My primary thesis recently has been that this is a good market for stock pickers. When the stock picks stop working then its time to cut exposure and to be more selective when making new buys. Small caps are also lagging which is another reason to be concerned.

There is nothing wrong with the overall technical action, but the sharp reversals in some momentum names are very important to watch. It may just be a bout of profit taking after a good run but it is severe enough to increase our vigilance.

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 IQ, HUYA, MOMO, and BILI.

TAGS: Investing | U.S. Equity | China | Markets | Stocks

More from China

Wynn Resorts Is Pointed Up - Here's Our Technical Strategy

Bruce Kamich
Apr 7, 2021 2:14 PM EDT

Let's review the charts and indicators.

Why Beyond Meat Shares Are Not for Everyone

Stephen Guilfoyle
Apr 7, 2021 10:42 AM EDT

The stock is ideal for an investor looking to add some speculation to a portfolio lacking such a product.

Jim Cramer: Jamie Dimon Throws Down the Gauntlet

Jim Cramer
Apr 7, 2021 7:20 AM EDT

I find his comments about China the most compelling after his salvo about racial equality.

Nio's Charts Suggest Further Declines Ahead

Bruce Kamich
Apr 6, 2021 11:38 AM EDT

The level for the bulls to defend is the $35 area.

Investors to Suffer as Company Director Details Obscured in Hong Kong

Alex Frew McMillan
Mar 31, 2021 9:00 AM EDT

The Hong Kong government wants to change public-record rules in a way that encourages fraud and abuse.

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

  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 08:05 AM EDT BOB LANG

    Bitcoin vs. Gold: Which Should You Invest In Now?

    Read my article TheStreet here!
  • 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