• 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

You Have to Admit That Friday's Rally Was Pathetic

If you like roller coasters then Friday was for you.
By HELENE MEISLER
Oct 15, 2018 | 06:00 AM EDT

You have to admit that rally on Friday had everything. And it really was pathetic.

It had everything because it had the big gap open followed a big mid-day fade that took us red, or close to it followed by a rally back to the high at the end of the day. If you like roller coasters then Friday was for you. If you like the FANG stocks then Friday was for you.

If you like strong breadth in your rallies, Friday was not for you since net breadth was +450 issues. Let me remind you the S&P was up nearly 40 bucks. If you prefer the small caps at least join the party just a little bit then Friday was not for you since the Russell spent almost the entire day in the red. 

If you like it when banks open strong and stay that way then Friday was not for you since they opened strong and gave it all back. The chart of the Bank Index is one only a mother could love. Speaking of, no my mother has not yet called to ask about the market. 

I have not been a fan of the Banks for a while but I thought for sure we'd see a rally toward 104 on Friday and the Bank Index couldn't even make it to 103 before turning red. I still think they are oversold enough to rally but so far they don't much care what I think.

Speaking of being oversold, we are very much still oversold. My own Oscillator is based on the 10-day moving average of the net of the advance/decline line. When we look back at the numbers we are dropping from 10 days ago we look for a string of red numbers to consider us oversold. As you can see from the table below there is a lot of red. Even the 30-day moving average has a lot of red for this week. The 30-day is a more intermediate term Oscillator.

I will grant you that the first three days of the week show very moderate red numbers. Keep in mind to get more oversold we have to replace a red number with a larger red number so if you look to the end of the week you can see some pretty big numbers.

As I've discussed, the Nasdaq Momentum Indicator has this window to get oversold between last Thursday and this Tuesday. So did the rally on Friday change that? See for yourself. If I walk Nasdaq down 200 points this week, taking it back to where it was mid-day Thursday the Momentum Indicator goes up. That's what happens when it's oversold. So the window is still open. Wide.

Nasdaq's Hi-Lo Indicator is now at 15%. Under 15% and it is oversold.

The 10-day moving average of the put/call ratio is still rising. I expect it will rise for another few days, hopefully getting to an extreme level.

I do not expect any sort of V bottom. There has been a great deal of damage done to the charts. But the market is still oversold so even if we back off from Friday's pathetic rally we should rally again.

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

More from Investing

Hungry Traders and Stock Opportunities Aren't Likely to Go Away Soon

James "Rev Shark" DePorre
Jan 15, 2021 4:40 PM EST

It doesn't take much time for stocks with strong momentum to reset and continue on their way.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

United Parcel Service Is Testing Key Support

Bruce Kamich
Jan 15, 2021 2:30 PM EST

A look at the charts of UPS.

A Buy and Hold Play With Hennessy Capital V

Timothy Collins
Jan 15, 2021 2:24 PM EST

HCICU hit the public markets today.

Jim Cramer: It's High Time to Call in the Covid Assassins

Jim Cramer
Jan 15, 2021 2:00 PM EST

Enroll the private sector that has the capability of vaccinating en masse and save the kingdom.

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

  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • 08:35 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/13/2021

    Lower highs... SPX (Long-Term View) The 1/8/2...
  • 08:07 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/12/2021

    Watch if the recent trend of lower highs continues...
  • 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