• 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

New Year, Same Old Market

We haven't moved past the either/or market -- and here's what that means for big-cap tech and growth stocks and breadth. Also, let's look at something shiny and precious.
By HELENE MEISLER
Jan 11, 2022 | 06:00 AM EST

The either/or market is still intact. Don't kid yourself. That means if the big-cap tech/growth stocks decide to rally again, the rest of the market likely sits it out. And when the rest of the market sits it out, breadth turns sour. That's the way the market is. Someday it will change, but for now, it is too soon for that.

So, was the Nasdaq reversal good? Yes and no. Yes, because the volume in the Invesco QQQ  (QQQ) was 90 million, which is high. I always like high volume in the QQQs, because it means we had a mini cleanout. Take a look at the chart of the QQQs, because aside from the reversal, it broke down, had a shake out and came back. That's the good news.

The bad news is that new lows increased. They didn't explode, but whereas there were 710 new lows in early December, there were 740 on Monday. That means no positive divergence. We have, however, come to learn that 700-plus new lows (and new highs) tends to mark a temporary (short term) top or bottom.

Can the Invesco QQQ get back over $380? That is the question. And, if so, the question is how fast will folks get bullish on growth again? I suspect if there is follow through by the end of the week, we'll see sentiment shift.

Monday's put/call ratio was 1.13 at one point during the day (near the lows of the day), but even by the end of the day it was still 1.01, so it remained high for the day. The test is if we get a solid green day does that collapse? Time will tell.

But the market was heading into an oversold condition, so there is time for us to see how that sentiment develops. I think even if we don't have any follow through on Tuesday, we'd still have an oversold Nasdaq market by the latter part of the week. So, I wouldn't fret too much if there is no follow-through. In fact it might be better for sentiment.

Away from that, I was asked about gold, which has done little over the last several months except trade in a range. I see it as something that can rally to the $172-$173 area, but mostly it's trapped in a range. Sentiment isn't even one sided on it. There is no love and there is no hate. The Daily Sentiment Index (DSI) is at 35, which is neutral.

I do, in the near term, find the VanEck Gold Miners exchange-traded fund (GDX)  interesting, because it has a funky (very small) head-and-shoulders bottom pattern of sorts over the last six weeks. Curiously if that head-and-shoulders bottom were to come to pass it still only measures to the top of the range.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | Stocks | Technical Analysis |

More from Stocks

Here's the Secret to Market Timing

James "Rev Shark" DePorre
May 21, 2022 10:00 AM EDT

You've probably been told timing the market is futile, but here's a way to make it possible -- if you're willing to do the work.

It's Official: That Hairy Animal With Claws and Sharp Teeth Is a Bear

James "Rev Shark" DePorre
May 20, 2022 4:31 PM EDT

Along with the media proclamation of a bear market, we have some improvement in the charts of many smaller stocks, but ...

Applied Materials Slips on Miss: Where Will the Chips May Fall

Bruce Kamich
May 20, 2022 1:00 PM EDT

Let's see what the charts say.

Consumer Confidence Is Shot

Bret Jensen
May 20, 2022 12:00 PM EDT

Until things start to improve for the average consumer, it is hard to see significant upward moves for either the markets or economic activity.

I'm Cautious on Marvell Technology Ahead of Earnings

Bruce Kamich
May 20, 2022 11:52 AM EDT

Let's review 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

  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 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