• 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 This Market, If You Can't Beat 'Em, Join 'Em

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it.
By JAMES "REV SHARK" DEPORRE
Jan 26, 2021 | 05:50 PM EST
Stocks quotes in this article: GME, WKHS, MSFT

It was another topsy-turvy day of action with all the major indexes in the red and breadth running 3,100 gainers to 4,400 decliners. Despite the generally weak action, there were more wild short-squeezes and some strong action in electric vehicle-related special purpose acquisition companies.

There was another long list of small stocks making big moves, but these were all "secondary" names. The traditional momentum and CANSLIM names lagged, while aggressive traders chase wild momentum in things like GameStop (GME) and WorkHorse (WKHS) .

This action is causing some great concern among old-time Wall Street pundits, while the young traders are going wild with some of the junk that they can move. It won't last forever, but it has already lasted longer than many thought possible.

After the close, Microsoft (MSFT) put up a very solid report and is trading up 6%. This is going to help the FATMAAN names, and it will be interesting to see the market reaction. So far, neither good nor bad earnings have had much impact on either individual stocks or the market. The focus has been on this crazy speculative action, and there are no signs of it shifting.

There is no way to know how long this theme of strong small-cap speculation and short squeezes will continue, but I have no interest in fighting it. If you can't beat them, then join them. Sometimes the best move is to run with the ignorant herd of trades rather than try to fade them.

Microsoft is a good sign for this market and may trigger some rotation as we head into a big day or reports on Wednesday. This is an unusual mix of action, and there are plenty of opportunities.

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, DePorre had no position in any security mentioned.

TAGS: Investing | Stocks | Electric Vehicles

More from Stocks

Corrective Action Produces Fading Confidence and Technical Damage

James "Rev Shark" DePorre
Feb 26, 2021 5:08 PM EST

It's dangerous to have too much exposure now, but the potential for a good recovery is there once interest rate issues are digested.

I'm Intrigued by the Recent Pullback in Aurora Mobile

Timothy Collins
Feb 26, 2021 3:30 PM EST

While the Chinese company is still not profitable, it is cash flow positive.

Salesforce Gets a Quant Downgrade on Top of Weakening Charts

Bruce Kamich
Feb 26, 2021 12:50 PM EST

Here's what investors and traders need to think about.

My Preference Right Now Is to Buy Pre-Deals

Timothy Collins
Feb 26, 2021 12:36 PM EST

I've added a few names that I see as a great risk-reward because of the limited downside.

I've Been a Buyer Friday, Making Partial Buys Like I Always Do

James "Rev Shark" DePorre
Feb 26, 2021 12:07 PM EST

It's premature to predict that a low has been made, but plenty of stocks are quite washed-out already and are starting to find support.

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

  • 11:32 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Navigating a Market Correction
  • 11:29 AM EST GARY BERMAN

    Where Does the Nasdaq Go From Here?

    Where does the Nasdaq Composite (CCMP) index go fr...
  • 12:31 PM EST GARY BERMAN

    Has the Short-Term Top Come for the XLF/Banks?

    The has triggered a long-term overbought signal ...
  • 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