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Dow to Drop 20 Percent: Fitzpatrick

Thursday, 17 Jan 2013 | 12:44 PM ET
Dow Will Drop 20 Percent - Fitzpatrick
A confluence of factors suggests the Dow Jones Industrial Average is heading for a 20 percent decline this year, Citi FX Technicals Global Head Tom Fitzpatrick says.

A confluence of factors suggests the Dow Jones Industrial Average is heading for a 20 percent decline this year, Citi FX Technicals Global Head Tom Fitzpatrick said Thursday on CNBC.

"While there's a little bit left to the top side in the near-term, we're still on the same page we have been for the last three months or so, which is, that we're going to peak out around these levels and see a (decline) probably in excess of 20 percent," he said on "Fast Money."

Fitzpatrick looked at Dow performance charts from 1973-1977 and from 2006-present for the analysis.

In addition to a 20 percent drop in the Dow, he also predicted that gold would hit $2,400 an ounce, jobless claims would rise and Brent crude would hit an all-time high.

"The equity market looks great, up 120 percent if you compare it to 2009," he added. "But if you compare it to 1999, we're unchanged, and we're below the 2000-2007 highs.

"The economy probably barely grew 1 percent in the fourth quarter. We have a situation where it's looking like it could be quite sluggish with the tax dynamics and the debt dynamics in the first quarter."

Trader disclosure: On Jan. 17, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long GS CALLS SPREADS; Jon Najarian is long INTC CALLS; Jon Najarian is long EBAY CALLS; Jon Najarian is long NFLX PUTS; Jon Najarian is long AMRN CALLS; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long MMM; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long KRE; Joe Terranova is long DELL FEB 13 CALLS; Stephanie link is long AAPL; Stephanie link is long GS; Stephanie link is long WFC; Stephanie link is long BRCM; Simon Baker is funds long AAPL; Simon Baker is funds long CELG; Simon Baker is funds long XLY; Simon Baker is funds long GS; Simon Baker is funds long GOOG; Simon Baker is funds long XLU; Simon Baker is funds long AMRN; Simon Baker is funds long WFC

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