• 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. / Investing

Why iQIYI, Canada Goose and Other Names Are Up on a Down Day

Traders are buying them just because the stocks are up, but that can quickly reverse.
By JAMES "REV SHARK" DEPORRE
Jun 15, 2018 | 10:55 AM EDT
Stocks quotes in this article: DBX, GOOS, SOGO, IQ, CLPS

All the key indices are down, breadth is running around 2-to-1 negative and the number of new 12-month highs is down to under 120 - but there continues to be some pockets of very strong momentum. CLPS (CLPS) , IQIYI (IQ) , Sogou (SOGO) , Canada Goose (GOOS) and Dropbox (DBX) are a few of the names on my screen that are ignoring the overall market weakness.

The main thing that these names seem to have in common is that they're on trend-following momentum traders' radar screens. The only thing that seems to matter to the people who are trading these stocks is that the names are moving. Fundamentals are secondary, while overall market conditions don't seem to matter much, either.

The bears sometimes view this sort of speculative action as a contrary indicator, but it can last longer than many people think. The S&P 500 is taking out its intraday lows as I write this, and breadth has slipped a bit more. That could trigger some profit-taking in these high-flying momentum names -- but as we saw this morning, traders tend to come back to them very quickly.

Personally, I'm a net seller here. I've been closing out some of my big winners like SOGO, which was my Stock of the Week. I think the stock will set up nicely again in the future, but I'm happy to move to the sidelines for now.

The pockets of momentum have been unusually strong for a market in which the senior indices have been so dead. That can pay off nicely if you're fast and manage positions well, but keep in mind that momentum eventually cuts in both directions. The stocks that go up the fastest also come down the fastest.

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, RevShark was long IQ, although positions may change at any time.

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

More from Investing

We Are Cutting Our Market Outlook

Guy Ortmann
Mar 3, 2021 10:29 AM EST

Fewer stocks are participating in bounces from the recent increases in volatility.

Hits and Misses From the Early Days of What Would Become the Pandemic

Jonathan Heller
Mar 3, 2021 10:00 AM EST

Booking a cruise a year ago wasn't a great idea, but buying a discounted small-cap fund was; so was buying physical silver.

Canopy Growth Has Corrected but Needs More Accumulation

Bruce Kamich
Mar 3, 2021 9:46 AM EST

Let's review the charts and indicators.

XL Fleet's Charts Show Potential for a Future Purchase

Bruce Kamich
Mar 3, 2021 8:49 AM EST

A new base pattern needs to develop before taking a long position.

Hopping on a Couple Compelling Opportunities in a Market That Isn't

Bret Jensen
Mar 3, 2021 8:30 AM EST

Dips in the shares of Redhill Biopharma and FibroGen Inc. provided the chance for the author to employ his covered call strategy.

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

  • 08:50 AM EST PAUL PRICE

    Michaels: Close to a Deal?

    It appears that a deal could be announced soon. ...
  • 08:34 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 3/3/2021

    SPX (Long-Term View) The 20 DMA @ 3889 with the ...
  • 06:05 PM EST PAUL PRICE

    Michael's (MIK) Up on Takeover Rumors

    The NYT says talks are underway regarding a buyout...
  • 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