‘A Buyable Circumstance’ in Banks: Pro
The recent downturn in stocks was actually supportive of further gains, Strategas Research Partners Head of Technical Analysis Chris Verrone said Thursday.
"When we see about half the market make a one-month low, historically the forward returns are very good over the next one-month and next three-month time periods," he said, adding that the "trend is still up and still healthy."
Stocks closed near their highs Thursday, rallying for a third day on upbeat economic reports and comments from Federal Reserve policymakers.
On CNBC's "Fast Money," Verrone said that he was looking at the weakness in stocks as a "buyable circumstance."
"We think the trend is still up here," he added.
When looking at gold, Verrone said that the precious metal's price action was healthy for equities.
"This is the first time in almost a decade that equities are actually outperforming gold," he said. "I think that's a very healthy development."
Verrone also said that financial stocks appeared strong.
"We're making new relative price highs, multi-year highs, on banks vs. the S&P 500," he said.
Regional banks in particular, Verrone added, offered buying opportunities.
Shares of M&T Bank were "coming out of a real nice base," he noted.
"We think this chart's worth $130," Verrone said. "We're buyers of dips."