• 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
    • TheStreet Smarts
  1. Home
  2. / Investing

Are the Dippers Flippers?

Probably, which makes it very important to watch the day's low
By JAMES "REV SHARK" DEPORRE
Jul 14, 2016 | 10:35 AM EDT
Stocks quotes in this article: FN, SPY

This morning is a classic example of how the market drives very aggressive dip-buying. The gap-up open on the Bank of England interest-rate decision obviously made a very overbought market even more extended. The typical response is to fade that sort of move. That works for a few minutes but then the dip-buyers stampede in and push us right back up.

The market action that we have had lately produces a huge supply of folks that want to buy dips. The market goes up so fast that it leaves many on the sidelines. There are also those that have sold down positions and played some defense that hate missing out when momentum is so strong. Throw in some squeezed bears and you have a recipe for aggressive dip-buying.

The question now is how long those dip-buyers will stick around. Are the dippers flippers? Probably, which makes it very important to watch the day's low in the index. If that is breached, it changes the tone of trading.

As I mentioned yesterday, I did a bit of defensive positioning and this morning's action is not doing anything to help me re-establish positions. My stock of the week, Fabrinet (FN) continues to act well, but even that is something I'd rather buy on a pullback. My cash level has gone up quite a bit and I probably will raise it very quickly if the SPDR S&P 500 (SPY) trades back under $215.75 or so.

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 had no positions in the stocks mentioned.

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

More from Investing

If You're Buying the Dips in QQQ, Here Are 2 Zones to Consider

Bob Byrne
Aug 12, 2022 8:30 AM EDT

There are a pair of moving averages to watch in this process.

Hong Kong's Population Shrinks Due to Emigration Wave

Alex Frew McMillan
Aug 12, 2022 8:10 AM EDT

Since the introduction of a detested National Security Law, more than 200,000 Hong Kongers have left, taking their wealth and skills with them.

It Is Time for the Market to Build Support Levels and Rest

James "Rev Shark" DePorre
Aug 12, 2022 7:40 AM EDT

As the action cools, there is going to be more concern about how easy it will be for this market to continue to rally at this pace.

PPI Cools, Home Prices Don't, Fed in the Dark, Technical Battle Lines, Chevron

Stephen Guilfoyle
Aug 12, 2022 7:29 AM EDT

Just when is the Federal Reserve going to reduce the cash slosh, anyway?

Let's Update 3 Recent Trades on Meta, Gold and Bumble

Ed Ponsi
Aug 12, 2022 7:00 AM EDT

It's clean-up time.

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

  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • 01:44 PM EDT STEPHEN GUILFOYLE

    This Holding Lights Up With Strong Earnings

    Check out the latest from TheStreet's Stocks Under...
  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 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