Given the declines this year should you bottom fish or bail? Find out from Oppenheimer Chief Market Technician Carter Worth.
Following is a synopsis of Carter Worth’s technical analysis.
Yahoo : Showing Technically Bearish Signs
Yahoo is a perfect example of a stock you should sell, Worth says. Not only has the stock displayed technically bearish indicators (triple bottom), but the fundamental story is also a disaster, with the company selling at a premium to tech names such as Apple (AAPL) Research In Motion (RIMM) and Google (GOOG) despite the fact that it is growing at a much slower rate.
Research In Motion 90%
Research In Motion 85%
Research In Motion 50.7
Jeff Macke doesn’t agree with Worth. Macke thinks Yahoo is a long term turnaround play and not as expensive as Worth’s charts suggest.
I would not be short Yahoo, interjects Pete Najarian.
Intel : May Trade Up Following Earnings, But The Trend Is Bearish….
Intel is also a sell ahead of earnings, says Worth. The stock has sold off in anticipation of earnings. It is hovering around a key support level, and could very well see a boost from earnings.
But that boost will be temporary, he adds, much like RIMM’s earnings provided a boost to the stock, but it eventually traded down.
> Read More: Learn how the panel recommends trading Intel in “Tomorrow’s Playbook”
Coal Stocks: Show Technically Bullish Signs…
Coal stocks could be worth watching, says Worth, particularly Peabody and Arch Coal . Technical analysis suggests to me, their long-term trend is bullish, he concludes.
I agree, says Guy Adami, BTU is probably a buy.
For an in-depth look at the charts used in Carter’s Worth technical analysis please watch the video.