• 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
    • Trifecta Stocks
  1. Home
  2. / Investing

Interested in FCAU Stock? Best to Track It Before You Buy It

This is not a stock that looks like it has formed a solid low.
By JAMES "REV SHARK" DEPORRE
Oct 22, 2018 | 10:37 AM EDT
Stocks quotes in this article: FCAU, KKR, NIHD

The very poor market action continues but it may be a good thing that we aren't seeing a typical Monday morning bounce. What we want to see is a very high level of disgust that causes many to throw in the towel.

Typically, bottoms don't come on fear. There are a few exceptions like the crash in 1987, however it is far more typical for a bottom to occur with a whimper and not a bang. Back in 2008 the bottom occurred on March 17. There was nothing remarkable about the action on that day other than an intraday reversal. Volume wasn't unusual and there wasn't a big move until the next day which that stuck.

The important point here is that don't expect to see a bottom in this market to come on a panic. It will likely occur without much fanfare. The best tip-off of a low will be some strength that finally holds.

I continue to do very little. Long positions simply aren't working and it is premature to do much building of long positions. There are a few junk names attracting speculation but they are not seeing the sort of chasing that usually occurs in better markets.

It is very important to recognize right now that it doesn't matter that you own 'good' stocks. This sort of market does not distinguish between those that deserve to be lower and those that don't. Everything is being sold regardless of merit but that is what will eventually create great opportunities. We just have to wait for market conditions to shift. 

Fiat Chrysler (FCAU) is one of the few stocks that is up today after selling off its automotive components business to KKR (KKR) . The stock is trading up about 3.5% on the news but this not a stock that looks like it has formed a solid low. Not only is the automotive sector struggling with worries about a cyclical shift but the charts of all the stocks in the group are quite poor. If you are interested in a name like FCAU it is best to track it for a while before you buy it. This stock is not going to run away from you in the near term.

One stock I'm watching today is my Stock of the Week, NII Holdings (NIHD) . They operate Nextel wireless in Brazil and may be a potential takeover target as Brazil is said to be changing their restrictive rules on ownership of spectrum.

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, James DePorre was Long NIHD.

TAGS: Investing

More from Investing

For Smith & Wesson, Load, Cock and Fire Another Round

Bret Jensen
Jun 26, 2022 7:30 AM EDT

Here's how to aim for this gunmaker once more with a covered-call play.

The 10 Personality Traits of Successful Traders and Investors

James "Rev Shark" DePorre
Jun 25, 2022 10:00 AM EDT

Superior market players share these characteristics in their emotional makeup.

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

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

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 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