Thursday's Market Action, A Buy Signal?
We often pose the question, will the bottom hold? Guess what we found out today!
It probably will, according to Oppenheimer chief market strategist Carter Worth. He says the violent moves up and down are quite optimistic signs. “The market is in the throws of pricing in all the bad news that’s coming. It’s in a process of stabilizing and healing.”
As we’ve told you before Worth recommends being all in, on the long side. And that’s a controversial thesis to say the least. But once again he tells Dylan Ratigan on “Closing Bell” “It’s right to take the road less traveled. I think one is better served by buying and not selling.”
What’s his investment strategy?
“Seek out beta names that are have been beaten down in materials, industrials and energy and offset them with defensive names that have exhibited impressive relative strength.”
When pressed for specific stock picks Worth told us you have to take it company by company. So we did. In technology he likes SAP , but when asked how he likes IBM he said, “not so much.”
And in retail Worth only likes low end guys like Family Dollar and Dollar Tree . He’s also bullish on Wal-Mart.
Now, if follow Worth's advice and you do take a long position, don’t forget to stop out. Worth says if your long position slides 7% it will probably go down further – so make sure you have a stop on the trade at 7% -- and if necessary, get out.
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CNBC.com with wires