• 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

In the End, Buyers Went to Work

Following a post-China truce rise on Monday morning, the indexes sold off slowly and steadily until the final hour of trading when the buyers went to work.
By JAMES "REV SHARK" DEPORRE
Jul 01, 2019 | 04:47 PM EDT

The bulls were looking for "gap and go" action. The bears were rooting for "sell the news" action. We ended up with a little of both.

The indexes gapped up in euphoric fashion following news that the U.S. and China have resumed trade talks, but that was the high of the day. The indexes sold off slowly and steadily until the final hour of trading, when the buyers went to work.

This is the first day of a new quarter, which means there are automatic inflows into retirement accounts, which may have been part of the reason for the buying into the close.

Small caps lagged and briefly went negative, but breadth was around 4,500 gainers to 2,800 decliners and there were around 525 new 12-month highs. Semiconductors led, but gave back a good chunk intraday, while precious metals lagged. The dollar was strong and bonds weakened.

The reaction to the news would have been complicated enough, but there was the added complexity of the index rebalancing on Friday, which was still reverberating, and the start of a new quarter. Those issues drive structural moves that have little to do with the news or technical patterns.

Technically, the S&P 500 looks quite good, even though it did not close near its intraday high. There is a cup-and-handle formation starting back in late April, and now the move through the pivot point as new all-time highs are hit. This is a healthy looking pattern.

Of course, the bulls scoff at this market for reacting to what they declare is a meaningless agreement with China that won't result in an agreement for many months, if ever. Economic news continues to come in weak, but the likelihood of a Fed rate cut remains very high.

There aren't any immediate catalysts on the agenda, as we head into the Independence Day holiday, so some trading-range action may be likely as things slow. While there doesn't seem to be anything that will cause another jump, it continues to be dangerous to embrace a bearish narrative.

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

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

More from Stocks

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.

GameStop and the Dangerous Game of Gamma Squeezes

Timothy Collins
Jan 22, 2021 1:26 PM EST

What happened after Citron Research posted a video about GameStop is very troubling.

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