If you're feeling jittery after Monday's market action, it probably won't make you feel much better to know that this month marks the 20th anniversary of black Monday - the infamous market crash of 1987.
Louise Yamada joins the panel to help untangle any knot you may have in your stomach. For years, Yamada has been the #1 ranked technical analyst on the street.
Does the market today remind you at all of the market in October '87?
The similarity is the negative divergences in the number of new highs vs. new lows, Yamada’s explains.
But what’s different she says, is the Fed. They raised rates 3 times into 1987 (from 6% to 9%); today, however, the Fed has lowered - from low levels to even lower levels.
She feels the differences outweigh the similarities, however, she’s closely watching for signs of a downturn and expects to know more in a about a month.
On a related note, Yamada presents the panel with a trade. She likes Broadcom (BRCM) for its chart. She also says tech stocks are very selective and she doesn’t recommend trading them across the board.
Pete Najarian agrees.