You probably know Doug Kass of Seabreeze Partners as a celebrated bear. But he’s turning bullish – at least a little. On Monday’s "The Kudlow Report" he told CNBC that he thinks the S&P could see its low for the year sometime in the next two to three days.
However, esteemed investor Jim Rogers holds the exact opposite opinion. He said on Tuesday U.S. stocks have not touched a final bottom in this bear market and that he is unsure where to invest.
Yikes, it’s hard to make a move when you’re getting insights like that. How about a different angle? Let’s check the charts with Oppenheimer chief market technician Carter Worth.
According to Worth leading economic indicators suggest the market is bottoming out and should trade sideways for a while.
Here’s what he’s watching.
COPPER ONE YEAR
Patterns in this chart suggest the decline is abating; it suggests a bottoming.
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COPPER 20 YR
We've reached the support line at 146.
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CRUDE OIL ONE YR
Patterns in this chart suggest the decline is abating; it suggests a bottoming.
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CRUDE OIL 20 YR
We've reached support line at 35.
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What’s the bottom line? “We like the action in copper and crude oil. Those are very important economic data points and they are stable and constructive. If we were on the cusp of some nuclear winter – a depression of unprecedented proportion – then copper and oil would be a lot lower."
As a result Worth believe the broader market will likely churn along sideways rather than take another leg down. However he thinks the churn sideways will last for some time.
And if you’re looking for a stock play Worth recommends looking at Freeport McMoRan and National-Oilwell Varco from the long side.
