GO
Loading...

Carter Worth: Charts Suggest Buying Current Weakness

Wednesday, 15 Jun 2011 | 6:34 PM ET

Ask any market pro on the Street and they can rattle off a string of reasons why the path of least resistance in the stock market is lower.

Go on, say it along with is: there are Europe’s economic woes, China tightening, the new regulations and requirements for banks, sharply higher prices at the pump and a surge in input costs threatening profit margins.

It enough to make you want to dig a hole in the sand and bury your head.

Well, the way we see it, we’ve got 2 choices - find a shovel and get to work on that hole -- or check the charts to see what the technicals have to say about the market moves.

The hole is tempting but we’re going with the charts and we don’t know anybody better to ask than Oppenheimer’s Carter Worth.

Why Buy on Market Weakness
Carter Worth, of Oppenheimer, explains why it's time to buy on the market softness.

And guess what? He tells us chart patterns suggest the most likely move in the S&P will be higher.

You read that right, higher.

He looks at trend lines and the 150-day moving average and all those things chart watchers – watch – and says it looks as if the 1220 level – which was the level at which the market broke higher in April and November should provided strong support.

He counsels “Buying and taking advantage of the current weakness.”

However, that’s not to say the upside is limitless. He thinks the S&P trades up to 1310, and when it gets there he says “I’d trim.” And if the S&P overshoots to the upside at 1340 he says “take back all longs.”

* Watch the video for Carter Worth's full analysis.



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 13, 2011, 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); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Grasso Owns (AKS); Grasso Owns (AMD); Grasso Owns (ASTM); Grasso Owns (BA); Grasso Owns (BAC); Grasso Owns (C); Grasso Owns (D); Grasso Owns (HOV); Grasso Owns (JPM); Grasso Owns (LIT); Grasso Owns (LPX); Grasso Owns (MHY); Grasso Owns (NDAQ); Grasso Owns (PFE); Grasso Owns (PRST); Stutland Owns (BAC); Stutland Owns (GS) Bonds; Stutland Owns (GM); Stutland Owns (GOOG) Bull Option Spread; Stutland Owns (MSFT) Bonds; Stutland Owns (WMT), Is Short (WMT) Calls; Stutland Owns Silver Bear Option Spread; Stutland Owns (GLD); Finerman Owns (MSFT); Finerman Owns (BAC); Finerman Owns (AAPL)

For Brian Stutland
Stutland's Firm Is A Market Maker In (WMT) Futures And Options Holding Positions
Stutland's Firm Is A Market Maker Holding Positions In VIX Futures And Options And VXX Stock And Options

For Steve Grasso
Stuart Frankel & Its Partners Own (ABX)
Stuart Frankel & Its Partners Own (CSCO)
Stuart Frankel & Its Partners Own (CUBA)
Stuart Frankel & Its Partners Own (GERN)
Stuart Frankel & Its Partners Own (HPQ)
Stuart Frankel & Its Partners Own (HSPO)
Stuart Frankel & Its Partners Own (MU)
Stuart Frankel & Its Partners Own (MSFT)
Stuart Frankel & Its Partners Own (NYX)
Stuart Frankel & Its Partners Own (PFE)
Stuart Frankel & Its Partners Own (PFST)
Stuart Frankel & Its Partners Own (SDS)
Stuart Frankel & Its Partners Own (UAL)
Stuart Frankel & Its Partners Own (XRX)
Stuart Frankel & Its Partners Are Short (QQQQ)
Stuart Frankel & Its Partners Are Short (AAPL)

For Karen Finerman
Finerman's Firm Is Short (IWM)
Finerman's Firm Is Short (MDY)
Finerman's Firm Is Short (SPY)
Finerman's Firm Is Long S&P 500 Puts
Finerman's Firm Is Long Russell 2000 Puts
Finerman's Firm Owns (AAPL)
Finerman's Firm Owns (BAC) Leaps
Finerman's Firm Owns (MSFT)
Finerman's Firm Owns (WMT)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Are Long U.S. Dollar
Accounts Managed By Brian Kelly Capital Own (GLD)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (USO) Puts
Accounts Managed By Brian Kelly Capital Own (IWM) Puts
Accounts Managed By Brian Kelly Capital Are Short (SPY)
Accounts Managed By Brian Kelly Capital Are Short (JJC)
Accounts Managed By Brian Kelly Capital Are Short (EWJ)
Accounts Managed By Brian Kelly Capital Are Short Euro
Accounts Managed By Brian Kelly Capital Are Short Yen
Accounts Managed By Brian Kelly Capital Are Short Pound
Accounts Managed By Brian Kelly Capital Are Short Australian Dollar



CNBC.com with wires

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report