• 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

I'm Not Very Trustful of Sustained Upside Momentum in the Indices

This argument of fully discounting the economic damage that has been done is at the heart of the current market debate.
By JAMES "REV SHARK" DEPORRE
Apr 23, 2020 | 10:59 AM EDT
Stocks quotes in this article: MRSN, SAVA, CODX

Despite another huge amount of unemployment claims the indices are trading higher again this morning. There has now been about 26 million unemployment claims in the last five weeks and all job growth since the 2008-9 recession has been wiped out, but the S&P 500 is up around 25% in the last five weeks.

Market participants explain the action by claiming that the bad news was fully priced in during the decline in late February and March, and now the market is looking ahead to a better future.

This argument of fully discounting the economic damage that has been done is at the heart of the current market debate. Bears scoff at the notion that the market has fully recognized the ramifications of what is happening to the economy but bulls are confident that a combination of massive stimulus and a quick reopening of the economy will keep the damage contained.

Based on the current price action the bulls are winning the debate so far. It is quite upbeat out there again with breadth running 5400 gainers to 1700 decliners. The skeptics keep getting squeezed as they wonder how this market can keep running as the economic damage piles up.

All we can do is stay focused on the price action and wait for it to shift. My thesis has been for a trading range to develop but the price action is stickier to the upside than I anticipated.

I continue to work on knocking out some trades in individual stocks. I added to a position in my Stock of the Week, Mersana Therapeutics (MRSN) and also have positions in Cassava Sciences (SAVA) and Co-Diagnostics (CODX) .

I'm not very trustful of sustained upside momentum in the indices but individual stock picking is working so that is my focus.

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 was Long MRSN, SAVA, CODX.

TAGS: Economic Data | Economy | Indexes | Investing | Jobs | Markets | Stocks | Trading | Coronavirus

More from Investing

Zero-Covid? NATO's China Challenge, Quarter-End Volume, Yields, Trading Chevron

Stephen Guilfoyle
Jun 28, 2022 7:23 AM EDT

There was a time when Covid vaccine news was headline material. Not now, though, and this news could matter.

Get the Facts, Not the Hype, Then Trade

Paul Price
Jun 28, 2022 7:00 AM EDT

Rather than waste time trying to predict when, or if, a recession is on the way, why not simply buy shares that appear quite undervalued? Here are two to start with.

What's the 'Pain Trade' Now?

Helene Meisler
Jun 28, 2022 6:00 AM EDT

Is it more rallying to suck more people in? Or is it a rollover that will spit out those 'Sentiment Tourists'? Let's take a look.

Don't Shout 'V' for Victory, Yet

James "Rev Shark" DePorre
Jun 27, 2022 4:22 PM EDT

Even after last week's move higher and Monday's narrow range of movement, we can say it's going to be difficult to produce a 'V'-shaped setup like we had at the pandemic low in 2020.

Let's See If Vertex Pharmaceuticals Can Push Higher on the Charts

Bruce Kamich
Jun 27, 2022 3:03 PM EDT

Here's what traders should do.

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

  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 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...
  • 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