As you know, investors poured into stocks worldwide after the U.S. government seized control of Fannie Mae and Freddie Mac in what could be among Washington's biggest bailouts ever.
However, the rally might be short-lived, at least according to Oppenheimer chief market strategist Carter Worth. He sent a note to clients on Monday saying to sell this bounce.
”Ask yourself why wasn’t the market up 1,000 points on Monday?” Worth says to the Fast Money traders. “The Freddie Fannie takeover is big news.”
In other words if this was so great how come there wasn’t a cataclysmic move in the markets to match the cataclysmic nature of the government action.
”We’ve nationalized home mortgages! But the rally was pretty feeble and a huge part of the market didn’t even participate,” he adds. "And we're making fresh new lows, globally."
From a technical stand point Worth doesn’t think we’re out of the woods, by any stretch of the imagination. "There's weakness at the strong end and weakness at the weak end. That's bearish," he says.
Here are some of his charts.
