Investors are struggling to determine if stocks are heading for a big correction and the bearish case certainly got a boost on Monday from comments made by a widely followed economist on CNBC.
During an interview on Squawk Box Europe Nouriel Roubini, also dubbed "Dr. Doom, said "I see the risk of a double-dip, W-shaped recession… towards the end of next year."
Rubini singles out high prices at the pump and inflation as having the potential to be very serious drags on the economy. In addition, Rubini also feels that the next earnings season could be very, very disappointing with companies unable to support their current valuations.
As a result he says, “I believe there's going to be a significant market correction for equities."
Of course Roubini’s forecasts can be a little gloomy but he’s not alone in his call for a correction.
If you watch the show regularly you know that Fast Money trader Guy Adami has been pounding the desk for days about signals he considers bearish. "The path of least resistance appears to be lower," he says over and over.
And even OptionMonster Jon Najarian – who tends to be something of an optimist – suggests preparing for a correction, though Najarian expects the slide to be mild.
If stocks are heading for a correction, which names should you get on your radar right now?
Tim Seymour: I think Potash and Intrepid Potash are both within 5% of being terribly attractive.
Guy Adami: If JPMorgan gets down to $28 I think it’s interesting.
Karen Finerman: I’m a buyer of Transocean down 5%.
Joe Terranova: I like Goldman and Freeport McMoRan .
What do you think? Tell us now!
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Trader disclosure: On June 22nd, 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), (MSFT), (NUE), (BTU); Seymour Owns (BAC), (BX), (EEM), (FCX), (FITB); Finerman Owns (TBT); Finerman's Firm Owns (FL), (MSFT), (PBR), (RIG), (NOK), (TBT); Finerman's Firm Owns (WFC) Preferred, (BAC) Preferred; Finerman's Firm Is Short (BAC), (WFC), (IJR), (MDY), (IWM), (SPY), (USO); Finerman's Firm Owns (WMT); Finerman's Firm Is Short (XRT); Terranova Owns (SDS), (TER), (XBI), (BTU), (ABT), (MSFT), (HES), (BTU); Terranova Is Short (XOM) Call Spreads; Terranova Is Short (OIH) And (OIH) Puts; Terranova Is Short (RIG) And (RIG) Puts; Terranova Is Short (FCX) And Is Short (FCX) Puts; Terranova Is Short (IBM); Terranova Is Short (GENZ) Call Spreads; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Owns (X) And Is Short (X) Calls; Terranova Owns (MS) And Is Short (MS) Calls; Terranova Owns (DIS) Call Spreads; Terranova Owns (BRCM) And Is Short (BRCM) Calls; Terranova Is Short (IBM) Calls; Terranova Owns (RIMM) And Is Short (RIMM) Calls; Terranova Is Short August Gold Futures; Terranova Is Short August Crude Oil Futures; Terranova Is Short September Crude Oil Futures; Terranova Is Short December 2009 Crude Oil Futures; Terranova Owns December 2009 Crude Oil Futures; Terranova Is Short December 2011 Crude Oil Futures