• 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

At This Point, There's No Fear of Being Left Out

My methodology is to buy strength rather than weakness.
By JAMES "REV SHARK" DEPORRE
Jan 19, 2022 | 10:26 AM EST

After the extremely poor action on Tuesday, there is a little rebound action this morning on about 2 to 1 positive breadth, but it is tentative and lacks energy so far. The longer it holds, the more likely some buyers will start to inch in and put some cash to work, but there is no fear of being left out at this point. The charts are a mess, the Fed is no longer our friend, and the indexes still need to correct more to bring them in line with the broader market.

I have a nice list of stocks that I like fundamentally that I want to buy, but we need better price action first. Fundamentals are not being rewarded in this market. In fact, if there is good news, it is an invitation to sell some on strength.

I do believe that quite a few stocks in groups like biotechnology and growth are close to solid support, but my methodology is to buy strength rather than weakness.

Many traders like to play the game of buying the bottom tick. It is understandable that they have that desire, but when you try to buy the low, then you almost always end up buying early because the only way to nail the low is to buy while stock is falling.

My view is that there is less risk if you wait to buy strength. You won't buy the absolute low, but if you buy right, then that is irrelevant.

I'm sitting on my hands waiting for better strength to buy.

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 "Rev Shark" DePorre had no position in the securities mentioned.

TAGS: Investing | Markets | Stocks | Trading

More from Investing

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Bob Lang
Jun 4, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

The Word Is, 'Lexicon' Is Worth a Trade

Bret Jensen
Jun 4, 2023 7:00 AM EDT

Here's an options play on this small pharma name that just scored an FDA win.

As the Market Shifts, So Should Your Strategy

James "Rev Shark" DePorre
Jun 3, 2023 11:50 AM EDT

Let's look a how to adjust trading techniques to fit the changes in the market.

Market's Frothy With a Side of FOMO

James "Rev Shark" DePorre
Jun 2, 2023 4:41 PM EDT

The small caps and the Dow finally host the party on Wall Street. But will this broadening action continue?

KLA Corp. Should Keep KLAC'ing Away

Bruce Kamich
Jun 2, 2023 2:30 PM EDT

Here's where the charts show this chipmaker heading.

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

  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 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