Michael Jacobs struck in each half to secure a 2-0 victory and cement Wanderers' position in second place, while the Magpies' defeat, their fourth in five games, leaves then rooted in the relegation zone.
County had beaten Coventry in their previous game, and Derry said: "When you come to Molineux, with the size and structure of the club, you don't want to let yourself down.
"I wouldn't say we let ourselves down but I was very disappointed in terms of how we played against Coventry and how we played here. That is what disappoints me more than anything.
"We could have played as well as we possibly could and still lost the game.
"But I felt that we didn't play as well as we could which is disappointing."
Despite the latest setback, Derry remains upbeat about County's survival hopes with a number of games coming up against their rivals in the battle to beat the drop.
He added: "They will be defining games. I am definitely looking at the bottom eight and nine teams, the guys we have to play between now and the end of the season, they will be the teams who define where we stand.
"We have got a big month coming up soon with four or five of them and at the end of those games it will give you a clearer indication of where you will be.
"I am confident because the guys are disappointed to lose to Wolves and they are demanding more from themselves which is encouraging."
- Sports & Recreation