• 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
  3. / Stocks

Here's Where I'm Seeing Solid Breakouts

As this healthy bounce boosts the market, I'm seeing opportunities in these special purpose acquisition companies.
By JAMES "REV SHARK" DEPORRE
Sep 09, 2020 | 01:01 PM EDT
Stocks quotes in this article: QQQ, FMCI, LCA, MYOV, TRIL, FBRX

After three days of selling, we are seeing some very healthy bounce action Wednesday. Breadth is running 5,300 gainers to around 2,000 decliners. The big-cap technology names were hit the hardest and they are helping the Nasdaq 100/Invesco QQQ (QQQ) to outperform with a rebound of more than 3%.

Typically, traders would not be too trusting of a bounce after the breakdown that we saw over the last three days, but times have changed and "V"-shaped recoveries are now the norm rather than the exception. Typically, after suffering a sharp drop, the psychology is to try to escape the anxiety-creating situation by cutting it back into strength, but what we see more often now is that fear of missing out tends to kick in rather than fear of another drop.

As I've discussed, this corrective action was fairly narrow, as far as the intensity of the selling. It was concentrated in the FATMAAN names and other sectors of the market held up quite well. Groups like special purpose acquisition companies -- SPACs -- and biotechnology suffered little downside and are now in a good position for upside.

I'm seeing some very solid breakouts in SPAC names like Forum Merger (FMCI)  and, my "stock of the week," Landcadia Holdings II (LCA) . Also biotechnology names like Myovant Sciences (MYOV) , Trillium Therapeutics (TRIL) , and Forte Biosciences (FBRX)  look quite good.

This is a two-tier market right now. There is a major difference between the action in the big cap technology names that become so grossly overbought and the rest of the market that looks quite solid technically and is not extended. Some traders are focusing on the volatility in the Nasdaq 100 names, but I'm sticking with good looking charts in secondary names. You just can't beat the trading opportunities in something like a Landcadia.

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, DePorre was long FMCI, LCA, MYOV, TRIL, FBRX.

TAGS: Mergers and Acquisitions | Investing | Stocks

More from Stocks

This Bull Market Is Not an Equal Opportunity Employer

James "Rev Shark" DePorre
Apr 15, 2021 4:32 PM EDT

We're seeing great action for major funds that are holding big-cap names, but downright lousy action for individual traders.

Jim Cramer: We've Got a Boom ... and a Bust

Jim Cramer
Apr 15, 2021 3:36 PM EDT

Let's look at this impossible move on the market -- and why health care could be coming off life support.

Make a Post-It: This Dividend King Will Stick Around

Bob Ciura
Apr 15, 2021 3:05 PM EDT

3M is a high-quality stock that sells more than 60,000 products in more than 200 countries.

The Technical Condition of Amarin Corp. Remains Weak

Bruce Kamich
Apr 15, 2021 2:45 PM EDT

Let's review the charts and indicators.

A Trade for a 'King'

Mark Sebastian
Apr 15, 2021 2:27 PM EDT

Let's look at Draftkings as it approaches earnings.

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

  • 02:42 PM EDT PAUL PRICE

    Wednesday on Real Money Pro

    Make this stock a 'part' of your portfolio.
  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 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