Earlier Tuesday, Treasury Secretary Henry Paulson told CNBC he’s worried that the housing crisis is still far from over. Find out why you can trade that by shorting agriculture stocks.
Is there a trade here?
Paulson is exactly right says Oppenheimer Chief Market Technician Carter Worth on CNBC's "Closing Bell". There’s no indication that we’ve hit bottom.
The bottom line is that housing stocks and housing consumer related stocks such as mattress companies or furniture companies or Home Depotare in established downtrends without signs of a bottom.
When do you expect the selling to begin abating?
Watch for signs that the last man standing, isn’t standing, replies Worth. Tech, shipping stocks are starting to succumb. But the Ag names however have not. They’ve continued higher.
When all stocks have started to show wear and tear you can start to make judgments about where the selling stops, but not yet.
My trade is short the Ag names.