• 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

Stocks Trading in Very Sloppy Fashion Ahead of the FOMC Announcement

When trading in front of the Fed the focus must be much more defensive than offensive.
By JAMES "REV SHARK" DEPORRE
Oct 30, 2019 | 10:37 AM EDT
Stocks quotes in this article: WING, REPH

Trading in front of the Fed announcement is always difficult but it more random than usual this morning. Chile announced that is canceling the APEC Summit in Santiago in November. Trump and Xi were scheduled to meet at that time and that triggered sell algorithms.

The market bounced back very quickly as the reason for the cancellation appears to be due to concerns about security in Chile rather than anything political. The S&P 500 has already recovered all its losses but stocks are trading in very sloppy fashion while we await the 2 pm ET Fed announcement.

Breadth is running about 2600 gainers to 4100 decliners as traders are playing stronger defense and protecting gains. When trading in front of the Fed the focus must be much more defensive than offensive. Traders don't want to let losses build and they can't have much trust in new long buys with that news event.

I've been a net seller and don't plan on doing much until I see how the market reacts to the Fed. My 'Stock of the Week', which is a short of Wingstop (WING)  , is working as the stock sold off quickly following a better than expected earnings report. The stock is expensive and the sector is out of favor which is why that trade is working.

One of my top picks right now is Recro Pharma (REPH) . REPH had an SEC filing yesterday that looks like it may be preparation for a spinoff that has been discussed. I suspect that spinoff may be announced on November 6 when earnings are released. The price action seems to support that speculation.

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 REPH, Short WING.

TAGS: Federal Reserve | Investing | Markets | Stocks | Trading

More from Investing

Bright Cannabis Outlook Leads to Bigger Estimates for 2022

Debra Borchardt
Jan 25, 2021 5:15 PM EST

The fundamentals of the cannabis industry continue to improve.

The Indexes Hide the Rumbling Underneath

James "Rev Shark" DePorre
Jan 25, 2021 5:02 PM EST

As the market appeared ho-hum on the surface, much was shaking underneath and traders got a jolt.

Jim Cramer: This Is a Market of Stocks, Not a Stock Market

Jim Cramer
Jan 25, 2021 3:22 PM EST

With few exceptions, there isn't a stock that could bring down this market.

The Most Notable Action Right Now Is Some Huge Short Squeezes

James "Rev Shark" DePorre
Jan 25, 2021 12:26 PM EST

Increased volatility is a warning sign, but it's very likely that we will see quite a bit of it before the big turn finally does occur.

AMC Is a Real Showstopper

Timothy Collins
Jan 25, 2021 11:50 AM EST

Let's look at how to play the frothy action on AMC Entertainment holdings.

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

  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • 08:04 AM EST GARY BERMAN

    Monday Morning Fibocall for 1/25/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • 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