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Market Bull Welcomes Stocks’ Selloff

Wednesday, 5 Jun 2013 | 5:34 PM ET
Are the Market's Pillars Collapsing?
Wednesday, 5 Jun 2013 | 5:00 PM ET
Dissecting the day's major business news, with the Fast Money traders. Are the pillars of the market collapsing under the economic data? Looking for correction protection. With Ralph Acampora, Altaira Investment Solutions.

Declines in the stock market suggest a healthy trend, Ralph Acampora of Altaira Investment Solutions said Wednesday.

"You're getting quality rotation," he said. "The sectors that look spectacular are the pillars for the next leg up, or they've been part of it already, are these financials, the industrials. No one's talking about technology. I don't hear anyone talking about semiconductors. They're on fire."

The Dow Jones Industrial Average suffered its worst one-day drop in nearly two months, tumbling 216.95 points, or 1.43 percent, to close at 14,960.59, The S&P 500 slumped 22.48 points, or 1.38 percent, to end at 1,608.90. And theNasdaq dropped 43.78 points, or 1.27 percent, to finish at 3,401.48.

(Read More: Broad Selloff: Stocks Tumble 1%, Dow Falls 200 to Close Below 15,000)

On CNBC's "Fast Money," the market technician said that he had been worried about two weeks ago amid talk of a market melt-up.

Gold Could Plummet to $1,200: Pro
Unless the U.S. dollar rolls over, there's more downside in gold prices, Galtere founder Renee Haugerud says.

"The last thing a bull like me wants to see is buying panic, so I'm enjoying this selloff, and I hope it continues," he said. "And I think it will. And that's going to be a great opportunity to, not only hold those groups, but maybe in that decline you start taking a look at the utilities and the REITs again."

However, Acampora warned against jumping into that trade too soon.

"I think it's a little too early for that," he said.

Acampora said that stocks could head toward their 200-day moving averages, about a 10 percent pullback.

"This decline is broadening out," he added, noting that the DAX broke out from a double-top and that emerging markets made new lows.

"It's a global affair, and I think it's long overdue," he said. "And I'm very happy."

(Read More: Gold Could Continue to Slide Toward $1,200: Pro)

Acampora also looked to gold's short-term low in April, seeing its short-term trading range around $1,320 to $1,485.

"The longer-term is questionable," he said. "Until that $1,321 breaks, I'd say the odds are that gold stabilizes here."

Trader disclosure: On June 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long GM; Karen Finerman is long JCP PUTS, SHORT DEBT; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDY Puts; Dan Nathan is long VIX JUN 16/20 CALL SPREAD; Dan Nathan is short SPY; Dan Nathan is long XLE JUN 80/77 PUT SPREAD; Dan Nathan is long FB JUN/JULY 25 CALL SPREAD; Dan Nathan is long MS JUNE WEEKLY 25 PUTS; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long GM; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Steve Grasso is funds long F; Steve Grasso is funds long GM; Steve Grasso is funds long PAY; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long NEM; Steve Grasso is funds long MU.

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