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

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • IMF discusses role in Egypt

    Masood Ahmed, director of Middle East and Central Asia at the IMF, says that the IMF has two roles to play with Egypt, one of which is to provide dialogue and the other is to provide financial support.

  • IMF: Egypt has 'a long way to go'

    Masood Ahmed, director of Middle East and Central Asia at the IMF, says that Egypt has made a lot of improvements regarding energy subsidies and broader reforms, but still has "a long way to go."

  • Is Greece spiralling out of control?

    Peter Rosenstreich, chief FX analyst at Swissquote Bank, says the negotiations between creditors and Greece may not end well.