• 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. / Markets

Still Stock Picking Despite Frothy Price Action

My game plan is to stay focused on individual stocks and not worry too much about the indices.
By JAMES "REV SHARK" DEPORRE
Nov 21, 2016 | 02:11 PM EST
Stocks quotes in this article: IWM, HDSN, CRK, OAS, HIIQ

The iShares Russell 2000 ETF (IWM) is now up 11 of the last 12 trading sessions. By any measure, it is technically overbought -- but the same thing could have been said a week ago. Therein lies the ingredients for more upside. Both the bears and underinvested bulls are looking for some downside -- and when it doesn't occur they will be forced to reposition and add to the upside pressure. IWM is a holding of Stocks Under $10.

The key think to keep in mind about markets that are hitting new highs is that they don't suddenly collapse. They stay sticky to the upside, as dip buyers are not easily discouraged. The downside can come swiftly, when it does finally occur -- as there is a rush to lock in gains, but the rollover can be a very stubborn thing and it is easy to over-anticipate weakness.

My game plan is to stay focused on individual stock picking and not worry too much about the indices. Breadth is very solid, with about 4,500 gainers to just 2,100 decliners. There are nearly 700 stocks making new highs. That sort of price action might seem a little frothy, but it doesn't suggest impending doom.

Oil names continue to be at the top of my radar. I anticipate adding some names into the close. Prior Stock of the Week, Hudson Technology (HDSN) , caught a second wind today and blasted to highs on good volume. Comstock Resources (CRK) , Oasis Petroleum (OAS) and Health Insurance Innovations (HIIQ) are on my list as potential additions.

While this market still looks quite good, we can't overlook the fact that we want to focus on keeping our accounts near highs. We can't completely throw caution to wind -- although that has been a good idea lately.

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 HDSN, CRK, OAS and HIIQ, although positions may change at any time.

TAGS: Investing | U.S. Equity | Markets | Stocks

More from Markets

Nano Dimension's Cash Raising Could Lead to Some Intriguing Scenarios

Timothy Collins
Jan 19, 2021 12:15 PM EST

In four months, NNDM will have raised $1 billion in cash.

The Hot Action in this Market Is in Small Stocks

James "Rev Shark" DePorre
Jan 19, 2021 11:29 AM EST

This continues to look like a very healthy market.

You Can Own the Entire Infrastructure Sector With This ETF

Ed Ponsi
Jan 19, 2021 10:30 AM EST

We'll chart the sector represented by the Global X U.S. Infrastructure Development ETF.

What Lies in Store for the Market in the First Quarter of 2021?

Maleeha Bengali
Jan 19, 2021 9:34 AM EST

It's easy to get caught up in the inflation trade, but it's also important to know how best to play that.

Jim Cramer: 3 Big Takeaways for Investors From Bank Earnings Calls

Jim Cramer
Jan 19, 2021 7:00 AM EST

The consumer continues to de-leverage at an extraordinary pace -- and the ramifications of this are extraordinary.

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

  • 11:09 AM EST GARY BERMAN

    Is Copper About to Turn to Rust?

    Below is a very long-term copper chart.  As you...
  • 08:02 AM EST GARY BERMAN

    Tuesday Morning Fibocall for for 1/19/2021

    SPX (Long-Term View) The 1/8/21 high @ 3826.69 i...
  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • 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