Two Sectors Headed for Correction: Sine
A weak resolution to avoid the so-called "fiscal cliff" would be bearish for stocks in 2013, Drexel Hamilton Director of Research Barry Sine said Thursday.
"That ties in nicely to a key thesis we look at in technical analysis, which is the presidential cycle theory, which says stocks move in four-year cycles," he said. "The first and second years of a president's term is usually negative for stocks."
On "Fast Money," Sines said that stocks are setting up for a down year.
"Most of the strategists out there that I look at are pretty bullish," he added. "We're taking a contrarian view. We think you're going to get a bit of a correction."
Such a correction would put the S&P 500 in 1,330 territory, he said.
Sine said that defense and retail stocks would lead the broader market higher.
A key support level to watch was 1,400 in the S&P, he added.
"What you really want to see we have not been able to break through," Sine said. "You need to break above those resistance levels very convincingly if you're going to convince me there's going to be a rally in 2013."
Trader disclosure: On Dec. 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long AAPL; Mike Murphy is long C; Mike Murphy is long TGT; Mike Murphy is long M; Mike Murphy is short AMZN; Jon Najarian has nothing to disclose; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long JPM; Steve Weiss is long HK; Steve Weiss is long BBY; Steve Weiss is long AIG; Steve Weiss is long RIMM; Steve Weiss is long SWKS; Steve Weiss is long QCOM; Steve Weiss is long YUM; Steve Weiss is long M; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long WFC; Anthony Scaramucci is long YHOO; Anthony Scaramucci is long WMT; Anthony Scaramucci is long SBUX.
