Chartology - There Will Be Blood
What can you learn from the charts? Esteemed technical analyst Dan Fitzpatrick reveals how he’s trading the trends.
Dan Fitzpatrick is the Co-Contributor and Technical Analyst for TheStreet.com and he joins the panel for this conversation. Following is a summary of his main points.
Chart:S&P 500 Inverse ETF with 50-day moving average.
Analysis: It seems that we’re currently in an uptrend in a downtrending market. Buy on any pullback to its 50-day moving average, he counsels, or on a breakout above $65.
Chart:Cree with 20-day moving average.
Analysis: I like this company, says Fitzpatrick, in part because analysts hate it. Buy now or on a breakout above $34.
Pete Najarian and Guy Adami agree with the call.
Chart:Annaly Capital Management with 20-day moving average.
Analysis: Analysts like this company because NLY doesn’t have any subprime exposure, Fitzpatrick says. However, I think it’s too late to buy unless it's for a quick trade. And watch out for $24 ceiling.
For an in-depth look at the charts used in this analysis please watch the video.
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Trader disclosure: On Feb.25, 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 (ATVI), (YHOO), (DIS); Najarian Owns (C), (MS), (MSFT), (XLF), (YHOO); Najarian Owns (CCOI) Calls, (AA) Calls, (NTAP) Calls; Najarian Owns (ACI) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MSFT), (SUN), (TYC), (WMT) (YHOO), (AAPL); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (LEH); Finerman's Firm Owns Shares Of Royal Bank of Scotland Group plc; WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; GE Is The Parent Company Of CNBC; Fitzpatrick Owns (CREE)