The Fast Money traders told you the bottom won’t be in, until there’s panic like never before. Wait, this week volatility spiked to all an all time high.
And the Fast Money traders told you the bottom won’t be in until the Street is bloody from stocks that have been slaughtered. Wait again, this week the Dow experienced it’s worst one day sell-off, ever.
That means we have panic and blood. So, is the bottom in?
For insights we turn to Oppenheimer chief market strategist Carter Worth. Following is a synopsis of his technical analysis.
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CARTER'S MARKET OUTLOOK
As you can see from the chart, “there’s big volatility in this market and big volatility never happens in the middle (of a cycle). By all accounts big volatility only comes at the top or the bottom,” Worth says. And this certainly isn't the top. "I'm not saying to immediately run out and buy stocks but I'd lean off the short petal."
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CARTER'S SELL: TRANSPORTS
Patterns in this chart suggest to Worth that transports are a sell. Although the Dow has come back to its highs and global markets have come back to their highs, the transports have not. “I would get out of the rails including Union Pacific (UNP), Burlington Northern (BNI) and Norfolk Southern (NSC), he says as well as trucking stocks such as JB Hunt (JBHT) as well as Ryder (R). And underweight the package haulers like FedEx (FDX) and UPS (UPS)."
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CARTER'S BUY: INTERNATIONAL PHARMA