• 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

Figuring Out When to Jump In Becomes Tough Task

Waiting for a pullback hasn’t worked, but it is hard to find rational entry points when so many stocks are parabolic.
By JAMES "REV SHARK" DEPORRE
Jul 12, 2016 | 04:37 PM EDT
Stocks quotes in this article: YRD, MTCH, ERI

Although we have had some weakness into the close the last two days this market has been the definition of momentum recently. We have had four straight gap-up opens and the best 10-day run since 2011. Since the Brexit bottom on June 27 there has only been one small dip.

Can the bulls keep it going? By just about any measure we are now overbought and in need of a rest. The breakout was cemented with the follow-through today and CNBC gets to put up the "Nasdaq Is Positive for 2016" banner, but jumping in to new buys at this point is a tough job. Of course, waiting for a pullback hasn't worked at all, but it is hard to find rational entry points when so many stocks are parabolic.

Keep in mind that strong markets tend to stay sticky to the upside. They don't just suddenly reverse and go straight down. Too many folks will want to buy for that happen. They are quick to buy dips because they are tired of being left behind.

The hardest part of this market right now is trying to put cash to work. You can always buy indices but they sure don't present easy entry. As for individual stocks, it is necessary to really dip deep. I added a few things today such as Yirendai (YRD) , Match Group (MTCH) and Eldorado Resorts (ERI) , but I would have liked to have found quite a bit more.

It is a trite and simplistic saying, but "the trend is your friend" has been the best strategy for dealing with this market.

Have a good evening. I'll see you tomorrow.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com , an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.

TAGS: Investing | U.S. Equity | How-to | Stocks

More from Investing

Martin Marietta Materials May Trade Sideways Before Renewed Gains

Bruce Kamich
Mar 2, 2021 8:32 AM EST

Two potential top reversal patterns on the weekly chart give us pause when it comes to buying the aggregates supplier's shares now.

Unconvincing Rally, U.S. Dollar, Friday's 800-Pound Gorilla, Playing Pepper

Stephen Guilfoyle
Mar 2, 2021 7:54 AM EST

Everything came up roses Monday -- except for what matters most, broad participation.

Jim Cramer: There's No Stopping the Electric Gold Rush

Jim Cramer
Mar 2, 2021 7:10 AM EST

You can't lip service electric vehicles anymore. Exxon's board moves indicate it knows its gasoline days are numbered.

Here's Why Qurate Is a First-Rate Investment

Paul Price
Mar 2, 2021 7:00 AM EST

QRTEA has blowout earnings and cheap valuation. What's not to love?

Indices Are Catching Their Breath But Watch for Strong Support

James "Rev Shark" DePorre
Mar 2, 2021 6:45 AM EST

Action like we had on Monday helps create a large supply of buyers looking for entry points.

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

  • 06:05 PM EST PAUL PRICE

    Michael's (MIK) Up on Takeover Rumors

    The NYT says talks are underway regarding a buyout...
  • 08:09 AM EST GARY BERMAN

    Monday Morning Fibocall for 3/1/2021

    Always a good idea to know where our bounce zones ...
  • 11:51 AM EST REAL MONEY

    Watch Bob Lang and Doug Kass Discuss Short-Selling!

    Bob Lang and Doug Kass with an engaging and educat...
  • 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