• 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
  3. / Consumer Discretionary

We Aren't Seeing Much Gap-and-Run, and That's a Problem

Under the surface, it isn't nearly as upbeat.
By JAMES "REV SHARK" DEPORRE
Aug 01, 2017 | 10:38 AM EDT
Stocks quotes in this article: BA, SHOP, LL, WB

One of the problems the market has experienced in recent weeks is that we aren't seeing much gap-and-run action. There will be a strong open, but it is being sold rather father. There is still underlying support, as the dip buyers are still anxious to do their thing, but there isn't sustained intraday momentum recently.

Yesterday was a good case in point. As the gap up open was sold, an intraday low was made in the mid-morning, stocks pushed higher and then faltered in the last minute of trading. It wasn't bad action, but it was choppy and sloppy.

What makes the action rather annoying is that the media and even President Trump are focused on the DJIA, which is hitting new all-time highs on Boeing (BA) which is acting like Yahoo did back in 2000. There is almost nothing else acting like BA, but because of the peculiar way in which the DJIA is calculated, it is creating the illusion of a much stronger market than it really is.

Under the surface, it isn't nearly as upbeat. Technology, especially semiconductors, and biotechnology are struggling. Banks are taking up some of the slack and oil was helping as well, but breadth has been nothing special and the number of stocks at 12-month highs is limited.

Another challenge this market is presenting is that the stocks that were leading no longer are. If you haven't rotated into some new names, it is quite easy to lag. In addition, while there are many good earnings reports, there isn't much chasing. There are a few, like Shopify (SHOP) and Lumber Liquidators (LL) , which have high short interests that are running, but it's narrow than past earnings season.

I'd like to be more positive about the market, but I simply don't see much action right now. There are some potentially good picks, but they are not in shape technically right now. China names like Weibo (WB) seem to offer the best action at the moment.

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 WB, although positions may change at any time.

TAGS: Investing | U.S. Equity | Consumer Discretionary | Technology | Markets | Economy | How-to | Risk Management | Stocks

More from Consumer Discretionary

Our Latest Ulta Beauty Technical Strategy

Bruce Kamich
Mar 2, 2021 11:55 AM EST

A bearish divergence could foreshadow price weakness ahead.

The Sagas of a Cruise Operator and a Burger Joint Continue

Jonathan Heller
Feb 24, 2021 10:00 AM EST

Carnival Corp. continues to sell debt and equity as it works to stay afloat, while Steak n Shake deals with problems of its own.

A Furniture Seller and Footwear Retailer With Room to Run

Bret Jensen
Feb 24, 2021 8:46 AM EST

Hooker Furniture and Foot Locker recently raised their dividends and could provide more upside to buyers of the shares in the months ahead.

DoorDash's Charts Tell Me to Stay Near the Exit Door

Bruce Kamich
Feb 22, 2021 8:55 AM EST

Buyers of DASH are not being aggressive.

Ruth's Hospitality Group Serves Up Medium-Rare Charts

Bruce Kamich
Feb 19, 2021 8:28 AM EST

The pace of the advance in the steakhouse operator's shares has been slowing and volume is shrinking, too, so be cautious.

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

  • 10:53 AM EST GARY BERMAN

    Nasdaq Composite: Some Backing and Filling Is Here

    As today is the 4th day of the month, it seems lik...
  • 07:59 AM EST PAUL PRICE

    Fabulous News on United Natural Foods (UNFI)

    The major potential risk factor for , its contrac...
  • 08:50 AM EST PAUL PRICE

    Michaels: Close to a Deal?

    It appears that a deal could be announced soon. ...
  • 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