• 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. / U.S. Equity

Gap-up Opens Just Aren't What They Used to Be

We have chronically underinvested bulls, nervous bears and algos.  
By JAMES "REV SHARK" DEPORRE
Jun 20, 2016 | 11:07 AM EDT
Stocks quotes in this article: TCK, MEET, BEAT

In the "old days", fading a gap-up open like we had this morning was a pretty easy trade. It was routine for traders to sell into the strength, lock in some profits and then wait for a pullback to re-buy. It is not nearly as easy these days.

Gap-up opens just aren't sold as readily as they once were. Part of it is due to the way the computer algorithms operate and part of it due to the fact that we have chronically underinvested bulls and nervous bears. Folks are not positioned well to fade strength, even if they were inclined to do so.

The rally this morning is of particular importance, because if it can hold and gain some traction as Brexit fears subside then we are once again on track to test those all-time highs. When the market was celebrating the central bankers it was easy to do, but now it is not so certain. We unquestionably have some economic weakness, and trust in the central bankers isn't what it once was.

My game plan is to stay reactive with overall market direction. The uptrend is still under pressure and if we have a weak finish today it will give the bears an edge. We are going to continue to dance around on the Brexit issue all week and if the "stay" faction gains traction, it is going to put some bids under the market.

Rather than worry too much about the direction of the indices, I'm going to focus on some individual stock picks. My Stock of the Week, Teck Resources (TCK), is off to a good start and the mining sector in general continues to look interesting. MeetMe (MEET) and Bio Telemetry (BEAT) are on my radar, but with the indices practically flat intraday we have to wait a bit to see entries develop. The bulls really need a trend day to help turn the tide, and they may not have the momentum to do it.

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 TCK, MEET, BEAT, although positions may change at any time.

TAGS: Investing | U.S. Equity

More from U.S. Equity

When Not Just Any Dividend Stock Will Do

Bob Ciura
May 28, 2022 12:30 PM EDT

These 3 high-yield stocks are also attractive on a total return basis.

Look in the Basement for Bargains, If You Dare

Jonathan Heller
May 27, 2022 10:30 AM EDT

The ranks of companies trading below NCAV has been somewhat barren for a while, but you never know what you'll discover 'down there.'

How I'm Approaching Stocks and Bonds After the Fed Minutes

Peter Tchir
May 26, 2022 12:19 PM EDT

I see three key takeaways from Wednesday's FOMC release.

The Bounce Is On: Here's What I've Been Buying

James "Rev Shark" DePorre
May 26, 2022 11:28 AM EDT

The big question now is how far can this run?

Is It Time to Put Money to Work?

Guy Ortmann
May 26, 2022 10:15 AM EDT

Two key indexes have come off their previous negative implications.

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

  • 10:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The tremendous power of the sell button.
  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 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