• 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

Watching for a Shift in the Character of the Market Action

I will be looking at some index shorts should the selling pressure continue into the afternoon.
By JAMES "REV SHARK" DEPORRE
Nov 19, 2019 | 10:41 AM EST
Stocks quotes in this article: HD, KSS, INMD, LVGO

Despite poor reactions to earnings reports from Home Depot (HD) and Kohl's (KSS) , the indices gapped higher to start the day. The spike was immediately sold and the S&P 500 is now close to flat while the DJIA is in negative territory.  There is strength in a few places like biotechnology, and breadth is running positive so far with around 4000 gainers to 2500 losers.

What we need to watch for today is a shift in the character of the market action.  The pattern of action has been remarkably consistent for weeks with no intraday dip lasting longer than an hour.  This is driven by computer algorithms and they keep doing what works until it stops working. When the dips aren't immediately bought then we have to raise caution levels very quickly.

The action in the first 30 minutes of trading is looking different. It has been straight down so far and there isn't any sign of dip-buying. If that persists into the close it will be a change in character that is likely to push a number of traders to take a more bearish stance.

My cash levels are very high due to disciplined selling and the inability to find much new to buy. I sold the last of my position in InMode (INMD) this morning and a few other things, but I added to a position in Livongo Health (LVGO) . I will be looking at some index shorts should the selling pressure continue into the afternoon.

There is a crowd of traders trying to catch a market turn here and they will become more aggressive the longer the selling continues.  Stay vigilant and reactive.

(Home Depot and Kohl's are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells HD or KSS? Learn more now.)

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 was Long LVGO.

TAGS: Earnings | Investing | Markets | Stocks | Trading | Retail

More from Investing

Warning: Watch for Bull Trap

James "Rev Shark" DePorre
Jun 30, 2022 4:32 PM EDT

After an ugly day of bear market trading, beware of what could hide ahead on Friday.

For This REIT It's All About That Base

Bruce Kamich
Jun 30, 2022 4:10 PM EDT

We're checking the charts and indicators on Ventas, owner of senior housing and medical facilities.

This ETF Boasts 'Inflation Protection,' but Will It Rise to the Occasion?

Mark Abssy
Jun 30, 2022 3:26 PM EDT

The Ionic Inflation Protection exchange-traded fund, the latest such ETF to hit the market, offers direct exposure to the consumer price index.

Want to Save Your Retirement Fund? Tune Out the Talking Heads

Jim Collins
Jun 30, 2022 3:14 PM EDT

The first half of this year has been ugly. But we could have seen what would happen to Netflix, Tesla and Meta...

Is Pinterest's CEO Change Good News? It Depends on How You Look at It

Eric Jhonsa
Jun 30, 2022 2:30 PM EDT

Plus, why a report about an Apple 5G modem setback sounds believable.

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

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • 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