• 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 See No Way to Put Capital to Work in a Prudent Way

What's troubling many underinvested market participants is that there really has been no acknowledgment by the market of economic issues.
By JAMES "REV SHARK" DEPORRE
Apr 29, 2020 | 10:31 AM EDT
Stocks quotes in this article: GOOGL, GILD, FB, MSFT

Stocks are rampaging higher again this morning following a positive response to Alphabet's (GOOGL) earnings and news that a drug developed by Gilead Sciences (GILD) has positive results in the treatment of Covid-19. There is more news coming from GILD but the big headline is that there appears to be a reduction in mortality in severe cases.

With the indices moving straight up, it is becoming even more difficult to find good entry points and what is troubling many underinvested market participants is that there really has been no acknowledgment by the market of economic issues. Pending home sales were just reported and showed a drop of 20.8% versus expectations of a drop of 13.6%. In a normal market, this sort of miss would cause an immediate reaction but in this market, the issue is whether it is already discounted and will the Fed offset the problem.

I am sitting on very high cash levels right now and see no way to put capital to work in a prudent way. The market will need to pull back or consolidate before conditions will be better for my type of trading. Currently, the market doesn't seem to care if I like the conditions or not.

The Fed is coming up at 2 pm ET and will be followed 30 minutes later with a press conference with Jerome Powell. While no major news is expected, there is likely to be many reassurances that the Fed is going to do whatever is needed to support the economy. The market is already embracing this fact so it may not be a major buying catalyst.

At the close, there will be earnings from Facebook (FB) and Microsoft (MSFT) , which will give us some insight into the level of expectations and whether a lack of guidance is going to matter.

The strong price momentum is keeping the bulls happy but putting capital to work is very challenging.

(Alphabet, Facebook and Microsoft are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

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: Earnings | Economy | Federal Reserve | Investing | Stocks | Trading | Coronavirus

More from Investing

Buying Will Get You Nowhere If You Don't Know How to Sell

James "Rev Shark" DePorre
May 28, 2022 10:00 AM EDT

Let's explore the tremendous power of the sell button -- and why it's so emotionally charged.

Move Over Target and Walmart, Costco Gets the Gold Star

Stephen Guilfoyle
May 28, 2022 7:30 AM EDT

I had a bit of money -- and ego -- riding on Costco coming into earnings. It didn't disappoint.

A Rally Driven by Fear (of Missing Out)

James "Rev Shark" DePorre
May 27, 2022 4:28 PM EDT

What's next after this seesaw week? One thing is for sure: More volatility.

Let's Take Nikola for a Spin. And Then Return It

Mark Sebastian
May 27, 2022 2:56 PM EDT

I wouldn't want to own NKLA, but I could see riding it for a few days.

In Awe of Marvell's Rally? Check the Charts, Not Your Emotions

Bruce Kamich
May 27, 2022 2:03 PM EDT

Here's why you should stay nimble as you approach MRVL after its post-earnings upswing.

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

  • 10:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "The Tremendous Power of the Sell Button"
  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 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