• 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

It's Not a Big Surprise That Market Players Had Limited Conviction Wednesday

The extremely strong bounce on Tuesday didn't lead to strong follow-through or a quick failure on Wednesday.
By JAMES "REV SHARK" DEPORRE
Oct 17, 2018 | 04:20 PM EDT
Stocks quotes in this article: NFLX

The extremely strong bounce on Tuesday didn't lead to strong follow through or a quick failure. It led to a very chaotic and choppy session with weak breadth most of the day. A sizable dip in the morning was aggressively bought and a second dip following the release of the FOMC meeting minutes was also bought but the strong momentum that we saw on Tuesday was in very short supply today.

It isn't a huge surprise that market players had limited conviction today. As I noted the big bounce was just one of the steps needed to fixe the tremendous technical damage that has been done in recent weeks. The market is still stuck in a correction and the majority of stocks are in very poor shape technically.

In my review of charts today I saw hundreds of potential short setups and very few attractive long setups. The bounce on Tuesday was more of a short setup than a long setup for many stocks. That doesn't mean they will work but the path of least resistance is still to the downside.

There is nothing much of interest reporting tonight but that may be a good thing giving the inability of any of the major stocks to report so far to gain sustained momentum. Netflix (NFLX) looked great 24 hours ago but it traded down most of the day, although it finished up 5%.

The simple fact of the matter is that this continues to be a poor market and the bounce yesterday was not enough to change the character of the action. What is needed is a strong follow through day and some better leadership. Until that happens it is better to stick with short term trades and high levels of cash.

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.

At the time of publication Rev Shark had no position in the securities discussed.

TAGS: Investing

More from Investing

What AIG's Charts Say About the Stock Ahead of Earnings

Bruce Kamich
Aug 8, 2022 2:03 PM EDT

The stock just tested the underside of the declining 50-day moving average.

Solar Firm Sunrun Continues to Run on the Upside

Bruce Kamich
Aug 8, 2022 1:24 PM EDT

Here's what the longer-term picture looks like.

Weariness Sets in During This Bear Market Phase

Bob Lang
Aug 8, 2022 1:00 PM EDT

Sentiment is starting to turn bullish, but painted with a skeptical eye as the wall of worry is up high.

Tyson Foods: Should Investors Fly the Coop After Earnings?

Bruce Kamich
Aug 8, 2022 12:38 PM EDT

The shares gapped lower as the chicken supplier reported quarterly numbers. Let's check the charts.

2 Companies Where Insiders Are Gobbling Up Shares

Bret Jensen
Aug 8, 2022 11:30 AM EDT

A hardware giant and a biotech focused on ocular diseases have seen insider buying of late.

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

  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 08:54 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Secret to Dealing With FOMO
  • 03:51 PM EDT REAL MONEY

    AMD Second-Quarter Earnings Live Blog

    Real Money's Eric Jhonsa covers 's second-quarte...
  • 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