Chartology -- Bottom Fish Or Bail?
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.
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Trader disclosure: On Jan 14, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (YHOO), (INTC); Pete Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT), (EMC); Pete Najarian Owns (AAPL) Options, (SOV) Options, (VLO) Options, (WM) Options, (YHOO) Options; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (AEO), (DAI), (SKS), (WMT), (YHOO); Finerman's Firm Owns S&P 500 Puts And Is Short (SPY); Finerman's Firm Owns Russell 2000 Puts And Is Short (IWM); Finerman's Firm Owns (MDY) Puts And Is Short (MDY); Finerman's Firm Owns (LEH) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Is Short (IYR),(IJR), (GLD), (SPG), (TCO); Finerman's Firm Owns Paramount Energy Trust, Daylight Resources Trust, Canetic Resources Trust