Is Thursday's stock tumble just a bank-oriented hiccup in a new bull market — or par for the course in a bear-market rally?
Robin Griffiths of Cazenove Capital said the charts indicate a pessimistic view.
He concedes that the FTSE today hit its 200-day moving average.
But he said that one must consider the make-up of "what caused the rally" in the first place:
"The lower the quality stock, the worse its balance sheet and profits — they led the rally. That isn't good if you're going to look for a bull market."
He notes that the big global miners "have done well," driven in part by now-slowing growth in "China, India, Brazil." Pointing to the explosive gains by BHP Biliton, Griffiths said, "Thank you very much for doubling — but I don't think I'll buy it on the long-term view."
Griffiths concluded: "I would take risk off the table at this point."
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Disclosure information was not available for Griffiths or his company.