• 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

Expect Good Pickings Soon

As a picture-perfect technical breakout suggests that the market is going higher, we should see more opportunities to buy stocks than we've been seeing lately.
By JAMES "REV SHARK" DEPORRE
Sep 05, 2019 | 04:40 PM EDT

Market participants have grown skeptical of talk about positive developments in the trade negotiations between China and the U.S., but news of a meeting in early October hit at a perfect time.

The negative narrative has been gaining traction lately, especially after a weaker-than-expected manufacturing report on Tuesday. Many traders were anticipating that the recent trading range would resolve itself to the downside as concerns about a slowing economy took hold.

That created poor positioning for positive news. First, the news of a meeting hit and then better than expected ISM Services numbers were released. The news hit at the perfect time to drive the indexes out of the recent trading ranges. The trading range has been so obvious it created the risk that it would not hold, but the negative sentiment seems to have prevented that.

The big question now is whether the market builds on this breakout of a long trading range, or if there will be a quick reversal back down. With many market players leaning bearish, there is likely to be some good underlying support. It was a little disappointing that the indexes topped out about an hour into the trading day, but they held very steadily, in a tight range, into the close. Breadth was better than 5-2 positive, and there were signs that market players were hunting for some new exposure.

Typically a technical move of this sort will stay sticky to the upside. There is always the chance of surprise news, but there should be no big rush to try to fight this breakout.

This action should lead to better stock picking, as we shift away from purely directional trades.

The 50-day simple moving average of the S& P 500 is around 2945. Wednesday, that was a resistance level. Thursday it is the key-support level. The next resistance level will be the highs hit in late July. I'll be looking to put more money to work as this pattern continues to develop.

Have a good evening. I'll see you Friday.

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: Investing | Stocks | China

More from Stocks

This Is No Market for Commitment

James "Rev Shark" DePorre
Jul 6, 2022 4:55 PM EDT

After Tuesday's rotational moves, Wednesday was choppy. Here's why this is not a time to make long-term trades.

This Won't Hurt a Bit: Moderna Could Rally 25% From Here

Bruce Kamich
Jul 6, 2022 2:59 PM EDT

The stock is ready to make a recovery rally.

Move Over Minnie, I've Got a Love-Hate Relationship With Disney

Stephen Guilfoyle
Jul 6, 2022 1:00 PM EDT

DIS has been no day in the park for investors -- in fact, it's been acting more than a little Goofy lately. But I see this ride down starting to turn.

DoorDash Looks Ready to Make a Dash to the Upside

Bruce Kamich
Jul 6, 2022 12:35 PM EDT

Let's review the charts and indicators.

Rocket Cos Won't Be Blasting Off From Here

Bruce Kamich
Jul 6, 2022 12:00 PM EDT

Let's check out the charts and indicators.

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

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • 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