• 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. / Investing

Powell Apparently Looking for Reasons to Give the Market the Rate Cuts It Wants

Now the focus is on how many more cuts will follow.
By JAMES "REV SHARK" DEPORRE
Jul 10, 2019 | 10:20 AM EDT
Stocks quotes in this article: XLF, GDX, AEM, DIS, ZIOP, GBTC

The S&P 500 has surpassed the 3000 level for the first time ever as the market celebrates dovish comments from Fed Chairman Jerome Powell. Powell's prepared comments helped to cement expectations for a rate cut at the end of the month but now the focus is on how many more cuts will follow.

The important issue here is that Powell is apparently looking for reasons to give the market the rate cuts it wants. He is highlighting economic problems and low inflation, and that paves the way for lower rates.

Equities are celebrating the move on very strong breadth of 5200 gainers to 1300 decliners. The dollar is weaker and that is helping to drive up precious metals. Bonds are not that thrilled about the news and are lagging but banks (XLF) are happy with the news.

I've used the strength this morning to cut some of my gold exposure which has been my biggest sector bet recently. I took some gains in the Gold Miners ETF (GDX) as well as Agnico Eagle (AEM) , but will be looking for reentries as they develop. I've made a couple of other sales as well but anticipate adding some new buys later.

One chart that is interesting here is Disney (DIS) which has been consolidating nicely and trying to move through recent highs around $143.

A small biotechnology chart I like is ZIOPHARM Oncology (ZIOP) which recently hired a researcher from the National Cancer Institute.

Bitcoin continues to act well but I'm cutting back my position in Grayscale Bitcoin Trust (GBTC) a little as I lock in some gains and look for new entry points.

(Disney is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DIS? 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 DePorre was Long GDX, AEM, DIS, ZIOP, GBTC.

TAGS: Federal Reserve | Gold | Interest Rates | Investing | Markets | Stocks | Trading

More from Investing

Bearish Bets: 2 NYSE Stocks You Should Consider Shorting This Week

Bob Lang
Jan 24, 2021 10:30 AM EST

These names are displaying both quantitative and technical deterioration.

Price Targets: How They Mislead and How They Can be Used

James "Rev Shark" DePorre
Jan 23, 2021 10:00 AM EST

The main problem with price targets is that they are a static number in a dynamic situation.

Stock Market Continues to Defy Conventional Wisdom

James "Rev Shark" DePorre
Jan 22, 2021 5:04 PM EST

Concerns about the action being overheated remain, but rotational action keeps the momentum going.

AMC Is a High Risk, High Reward Play

Timothy Collins
Jan 22, 2021 2:15 PM EST

Short and sweet: This is based on the high running emotions of the markets. There's little to it beyond that.

GoodRx Needs a Shot in the Arm to Improve Its Outlook

Bruce Kamich
Jan 22, 2021 2:03 PM EST

IPOs in recent months have done extremely well -- not so GDRX.

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

  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • 07:54 AM EST GARY BERMAN

    Friday Morning Fibocall for 1/22/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • 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