After months of accurately calling for declines Carter Worth, Chief Market Technician at Oppenheimer is now seeing a bounce.
You can still buy a bear market rally, explains Worth on CNBC's "Closing Bell." Is this a bounce that lasts 4 hours or 4 days – nobody knows. What I do know is you don’t sell on a day like today (Tuesday).
How do you play it?
Avoid stocks with established downtrends (typically financials and retailers) and instead seek out strong stocks in well defined uptrends that have sold off sharply and have snap back potential, Worth says.
Specifically, I recommend looking at industrial names such as Jacob Engineering (JEC) and Chicago Bridge (CBI) as well as Apache (APA) in the energy sector. We’re also keeping an eye on McDonald’s (MCD) in the consumer space and Google (GOOG), Research In Motion (RIMM) and Apple (AAPL) in tech.
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Trader disclosure: On Jan 22, 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); Finerman Owns (GS), (M); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MO), (SKS), (WMT), (YHOO); Finerman's Firm Is Short (IYR), (IWM), (SPY), (IJR), (MDY); Finerman's Firm And Finerman Own (CROX); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (RIO) Puts; Najarian Owns (BIIB), (C), (CSCO), (MS), (MSFT); Najarian Owns (WM) Calls, (YHOO) Calls, (AAPL) Calls, (NSC) Calls