• 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. / Technology

Don't Expect a Strong Market to Suddenly Collapse

Until we have some sort of dip, it won't be simple to find new buys.
By JAMES "REV SHARK" DEPORRE
Oct 03, 2017 | 10:31 AM EDT
Stocks quotes in this article: QQQ, IWM, ZGNX

Strong markets stay sticky to the upside. I've written that many times this year, and it is still the key to navigating this market. You should not expect that a strong market is just going to suddenly collapse. A change in direction tends to develop slowly when there is as much momentum as we have now.

The indices aren't as frothy as they were on Monday, but there is still plenty of strength this morning. Breadth is solid at about 3600 gainers to 2500 losers, with new highs hitting around 680 as I write. The FAANG names are still lagging a bit, but the Nasdaq 100 ETF (QQQ) is outperforming the Russell 2000 ETF (IWM) .

As I discussed in my opening post, the dilemma of the market at this point is that it is very difficult to find new entry points. I made one new buy this morning, which was to add to a position in Zogenix (ZGNX) following a secondary offering priced at $37.50. I've also cut back a few positions that seem to be quite extended at this point. Jupai Holding JP, for example, has been a great trade and I'm taking some partial gains.

The net result is that I've cut my exposure, although I'm not particularly bearish. I'll be happy to see the market dip, but I'm not expecting any major turn.

This approach is why so many bulls are chronically underinvested. They constantly have cash they need to put to work. This is a big part of the reason that sentiment never really gets euphoric. It is just too hard to keep cash at work.

I'll be looking for some new buys, but until we have some sort of dip it won't be simple.

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 ZGNX, JP, although positions may change at any time.

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

More from Technology

An Update on the Weakening Trade Desk Charts

Bruce Kamich
Mar 3, 2021 12:55 PM EST

We're in no rush to be a buyer.

Marvell Technology Reports Wednesday, Here's My Trade Idea

Stephen Guilfoyle
Mar 3, 2021 11:17 AM EST

But, I will not be messing around with MRVL equity ahead of the digits.

China's Rubber-Stamp Congress Set to Kick Off

Alex Frew McMillan
Mar 3, 2021 7:45 AM EST

Cracking down on Hong Kong and outlining plans for future growth are two key items on the agenda in Beijing.

Biden Bits, Vaccine Vanguard, Unmasking Folly, Minerd Musings, Ives Inklings

Stephen Guilfoyle
Mar 3, 2021 7:36 AM EST

Among other things, the president works to align Democratic senators to support his massive Covid relief bill.

Dreary Market Action Disappoints

James "Rev Shark" DePorre
Mar 2, 2021 4:40 PM EST

Big-cap tech names slip into the red and pockets of momentum become harder to find.

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