Be Ready to Buy the October Dip: Charts

The current mid-summer rally will last until the end of August, but trading volumes will be light with many investors on holiday, Robin Griffiths, technical strategist at Cazenove Capital told CNBC Monday.

"It's more important to have your capital ready to buy a dip in October," Griffiths said. "By far the best bet is we'll be lower in October than we are now." Griffiths said he sees the market falling toward the March lows in October.

The tech sector in the U.S. is looking in "quite good shape," according to Griffiths. He noted that Intel , IBM and Cisco earnings figures were good, while Dell disappointed.

"From a chart point of view, certain high-tech stocks do look as though they're in proper uptrends which have got a bit more momentum," he told said. "If I was going to trade anything for this mid-summer rally, that sort of area would be the place to go."

Contact Europe News


    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Harriot Pleydell-Bouverie, founder of Mallow and Marsh, explains how her business grew from making marshmallows in her kitchen to a recent deal with supermarket chain Sainsbury's.

  • Jeffery Rothfeder, author of "Driving Honda", says that Honda's strategy of setting up localized operations in every market it goes into means the group gets the best margins in the auto industry.

  • Ian Cheshire, Kingfisher's chief executive, discusses the French business environment and says that he agrees with the French prime minister's call for monetary policy easing from the ECB.