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How can you profit in a sideways markets? Carter Worth, Chief Market Technician at Oppenheimer has some ideas.
As you may know Worth is someone who closely follows patterns in charts. Since stocks are range bound he suggests betting on reversals and likes the following pairs trades:
1) Long Smith International[SII
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] and short Weatherford International[WFT
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].
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2) Long China Mobile[CHL
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] and short Baidu.com[BIDU
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In both cases, Worth says he's looking for convergence. "In a dead market where equities make no progress you ought to do this type of thing."
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Trader disclosure: On June 9th, 2009, 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), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Macke Owns (TGT), (AAPL), (AGU); Najarian Owns (BX) Call Spread; Najarian Owns (DELL) Call Spread; Najarian Owns (FCX) Calls & Put Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (MCD) Call Spread; Najarian Owns (MOS) Put Spread; Najarian Owns (PALM) Call Spread; Najarian Owns (WNR); Najarian OWns (AMAT) Calls; Najarian Owns (FLR); Najarian Owns (JPM); Najarian Owns (NSM) Calls; Terranova Owns (TER), (XBI), (ABT), (RIMM), (BTU); Terranova Owns (BRCM) & (BRCM) Calls; Terranova Owns July Crude Oil Futures; Terranova Owns August Crude Oil Futues; Terranova Owns (MS) & (MS) Calls; Terranova Is Short (FCX) & (FCX) Puts; Terranova Owns (GENZ) & (GENZ) Calls; Terranova Owns (HES) & (HES) Calls; Terranova Owns (XOM) Call Spread; Terranova Owns (DIS) Call Spread; Terranova Owns (X) & (X) Calls; Terranova Owns (JPM) & (JPM) Calls; Terranova Owns (POT) & (POT) Calls; Terranova Owns (IBM) & (IBM) Calls
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