Chartology: The Debate Raging On Wall Street
In this bear market, it's the question on every investor's mind and, perhaps, the hardest one to answer.
Will the bottom hold?
According to Oppenheimer chief market strategist Carter Worth, the short answer is yes. In fact, he's mostly bullish on stocks. (You might remember Worth called the bottom a few weeks back on Fast Money.)
On Monday’s show he tells the traders a handful of stocks can be used as a “control mechanism” for the overall market in the quest to figure out if the lows of the past month are going to hold.
First he looks at the S&P since October 10th.
In principle we’ve had bearish momentum for the past 13 months and now that momentum looks as if its abating, Worth says. The S&P hasn’t made a new low since the massive sell-off on October 10th.
Now look at a few other charts that Worth considers "sherpa stocks" or stocks to watch for market guidance.
Both Google and Microsoft are trading above their October 10th lows. If they don’t break, Worth thinks the market shouldn't either.
And if you're looking for other stocks to watch for market guidance you can also check out Bank of America and NewsCorp . Worth says they too are well worth watching as proxies for the broader market.
What's the bottom line? According to Carter Woth the bottom should hold.
To see Carter Worth's complete analysis please watch the video.
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Trader disclosure: On Nov.10, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (SDS), (MCD), (WMT), (BNI), (UUP), (MSFT); Macke Is Short (BBY); Najarian Owns (BBY) Put Spread; Najarian Owns (SBUX) Puts; Najarian Owns (CHK) Call Spread; Seymour Owns (AAPL), (BAC), (F), (MER), (BX); Seygem Asset Management Owns (PTR)