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Bottom’s Up?

Wall Street faces the modern incarnation of an old-fashioned run on the bank as clients flee Bear Stearns in droves.

But this is the kind of panic that often marks an end to the pain. Just look at the collapse of junk-bond giant Drexel Burnham Lampert in 1990, or hedge fund Long-Term Capital in 1998, or even Enron in 2001.

After all, blood on the streets is just what the smart money is looking for to signal it’s time to start buying.

That’s at least according to Dan Fitzpatrick, president of Stockmarketmentor.com. He thinks the market has overshot itself to the downside and a perfect confluence of things is now bringing it back up. “Let the healing begin,” he said.

To start, the VIX volatility index is spiking, and trends show that historically signals a bottom.

The S&P 500 is showing a perfect correlation to the VIX with its own pullbacks, Fitzpatrick said. The S&P is far below its 200-day moving average and is now poised for a snap-back rally.

And even Google is tied to the trend. Like the S&P, GOOG was far below its 200-day moving average but is now starting to spike up again and is back to being in sync with the market. Fitzpatrick would buy it now on its way up.

Watch the video to see Fitzpatrick’s full analysis of these charts.

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Trader disclosure: On Mar. 18, 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 (INTC), (YHOO), (EMC); Najarian owns (AAPL), (AMR), (BBBY) Puts, (C), (COP) Calls, (CSCO), (JEF) Calls, A Neutral Put Spread In (LEH), (MS), (MSFT), (TSO), (USB) Puts, (YHOO), (XLF); Seymour Owns (AAPL), (BX), (CSCO), (F), (INTC), (MBI), (MER), (MSFT), (SBUX), (TMA), (TSO)

Dan Fitzpatrick Owns (GOOG)

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