• 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
  3. / Stocks

Aggressive Dip Buyers Slow Downside Momentum

The biotech sector doesn't look anything like a bear market.
By JAMES "REV SHARK" DEPORRE
Apr 20, 2020 | 11:13 AM EDT
Stocks quotes in this article: IBB, AMZN, NFLX, WMT, SHOP, ROKU, SDGR, CHWY, BILI, WORK, OCUL, MRSN

Stocks gapped down Monday morning, as a sharp drop in oil hurt sentiment and technical traders were concerned that the V-shaped bounce that has been running for two weeks may finally hit some resistance.

Despite the weak start, dip buyers showed up and are holding the indices steady. Breadth is poor with around 1,800 gainers to 5,400 losers but I'm seeing signs of stock-picking that is helping sentiment. A good example is the biotechnology sector (iShares Nasdaq Biotechnology ETF (IBB) ). which is at all-time highs. That sector doesn't look anything like a bear market.

In addition, the "go-to" Covid-19 plays, which include Amazon (AMZN) , Netflix (NFLX) , Walmart (WMT) , Shopify (SHOP) , Roku (ROKU) , and others continue to attract traders that are looking for action.

It is the aggressive traders that are providing bids and preventing downside momentum from building. While they may not be bullish longer term that isn't going to stop them from looking for some short-term trades when they have an opportunity.

The indices are setting up an intraday trading range. This means that short-term traders will be looking for opportunities at the highs and lows of the day. Overall it is health action despite the red indices, although the likelihood is that there is going to be some news flow that will cause a jump in volatility.

I'm doing some small trades with short-time frames. Some of my recent picks such as Schrodinger (SDGR) , Chewy (CHWY) , Bilibili (BILI) , Slack (WORK) , Ocular Therapeutix  (OCUL) and others continue to act well.

My Stock of the Week is Mersana Therapeutics (MRSN) and offers a nice-looking chart.

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, Rev Shark was long SDGR, CHWY, BILI, WORK, OCUL and MRSN.

TAGS: Investing | Markets | Stocks | Trading | Biotechnology | Coronavirus

More from Stocks

What Do Politicians and Sentiment Have in Common? (They Both Flip-flop)

Helene Meisler
Jun 30, 2022 6:00 AM EDT

The market is falling victim to shorter, smaller rallies -- and lots of chop. But here's why we're getting closer to overbought. Also, let's check on some gas and diesel.

Market Looks Good from Above, Poor From Below

James "Rev Shark" DePorre
Jun 29, 2022 4:21 PM EDT

The major indexes held up well, but underneath, it wasn't pretty.

This FAANG Stock's Technicals Are at a Summer Crossroads

Bob Lang
Jun 29, 2022 3:30 PM EDT

Summer is a time when this name usually gains momentum. Will it this time?

Kass: Untapped Homeowners Equity and Imbedded Gains Will Be a Ballast to Growth

Doug Kass
Jun 29, 2022 3:00 PM EDT

Homeowners equity has more than tripled in the last decade.

Good High Yield Stocks Don't Have to Be Pricey. We've Got 3 to Prove It

Bob Ciura
Jun 29, 2022 1:32 PM EDT

Here are three cheap dividend stocks that should pay off big.

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

  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • 11:56 AM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    Check out what's going on in the Stocks Under $10 ...
  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 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