• 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
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Tables Turn for Laggards and Leaders

These shifts can help close the gaps that have become excessive -- and can reward stock pickers who were watching names trapped in out-of-favor groups like biotechnology.
By JAMES "REV SHARK" DEPORRE
Jul 19, 2021 | 04:42 PM EDT
Stocks quotes in this article: IBB, ARKK, IBM

Stocks bounced a little in the closing minutes, but the Dow Jones industrial average still suffered its worst days of the year with a loss of over 2%. Breadth was around four losers for each gainer, and new 12-month lows expanded to over 300. It looked like classic corrective action, but if you dig under the surface, it was a very healthy day for some elements of the market.

The action was an inverse of some of the action we had seen during the past couple of weeks when the indexes were flying higher on very narrow breadth. Monday, the indexes reversed hard to the downside, but there was some surprising strength in the sectors that were being beaten up. Biotechnology (as seen in the biotech exchange-traded fund  (IBB)  was very good), and growth ETF Ark Innovation (ARKK)  managed to close up 0.78%.

This abrupt rotation between leaders and laggards and small-cap stocks and big-cap ones has occurred several times this year. These shifts help to close the gaps that have become excessive, and it also helped to reward stock pickers who were watching for the market to appreciate some of the stocks that were trapped in out-of-favor groups like biotechnology.

Certain areas of the market, especially oil and cannabis, did not find good support, and there was plenty of new technical damage, mostly in stocks that were outperforming recently.

While there were some unpleasant aspects to the market action, it was exactly the sort of action that we needed for healthier trading. The big caps and indexes have become overbought, and many small caps were oversold and looking for support. Both groups did what they needed to do today, and that should help to trade as we move forward.

IBM's (IBM) earnings are out, and the stock is seeing a favorable response, even though it is a serial disappointer.

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: Small Business | Investing | Stocks

More from Stocks

Take a Fresh Look at Where You Put Your Cash

Peter Tchir
Mar 27, 2023 12:40 PM EDT

Let's get back to the basics of cash reallocation and see why I'm not freaking out, but I'm also not in a mood for risk.

Why Market Indexes Are Often a Poor Measure of What's Really Going On

James "Rev Shark" DePorre
Mar 27, 2023 11:55 AM EDT

We are witnessing one of the most extreme disconnects in decades between the Nasdaq 100 and Russell 2000.

What the Fed Has Wrought

Bret Jensen
Mar 27, 2023 11:00 AM EDT

Damage From the central bank's policy mistakes are likely to keep growing.

Movado Shows Now Isn't the Time to Issue Disappointing Guidance

Jonathan Heller
Mar 27, 2023 10:35 AM EDT

The watchmaker saw its shares hammered on its outlook, which is a cautionary tale for other stocks.

Workday's Stock Looks Ready to Make Further Gains

Bruce Kamich
Mar 27, 2023 10:34 AM EDT

Let's check 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

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 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