Is The Bottom In?
As clients flee Bear Stearns in droves, Wall Street faces the modern version of an old-fashioned crisis; the run on the bank. Is this panic the kind of Wall Street washout that often marks an end to the pain?
Oppenheimer Chief Market Technician Carter Worth joins the panel for this conversation. Following is a summary of his main paints.
I don’t think we’ve come close to a complete capitulation, which would signal a technical turnaround, says Worth.
Those signs would include the following:
1) Persistent Weakness
2) Definitive New Low
3) Must Close On The High Of The Day
4) Massive Volume
So far, we have only had persistent weakness. I still think the financials and the S&P will continue lower, he adds. Too many traders are bullish for the market to really turn around.
Any trades in this environment?
Look at IBM and Apple , counsels Pete Najarian. I like the way they performed on Monday and expect them to do well going forward.
Or check out Wal-Mart , adds Jeff Macke.
To see the charts used in Carter Worth’s analysis please watch the video.
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Trader disclosure: On Mar.17, 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 (YHOO), (INTC), (EMC); Pete Najarian Owns (AAPL), (C), (CSCO), (ETFC), (MS), (MSFT), (XLF), (YHOO); Pete Najarian Owns (COP) Calls, (GS) Calls; Pete Najarian Owns (LEH) Puts, (XLB) Puts; Pete Najarian Owns (MF) And (MF) Puts