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Bearish Signal for Stocks?

Fast Money Portfolio
Fast Money Portfolio

If credit markets are any indication, the stock market may be facing some serious headwinds.

So says credit market strategist and co-founder of Capital Context Tim Backshall in the latest installment of Fast Money Portfolio – a new feature where long-term investing meets the volatility of today’s world.

In a live interview on CNBC Backshall tells us, “for about the first 6 months of the rally, equity and credit markets had been in sync. But in the past month the high yield market has gone sideways as equities have pushed ahead.”

That kind of divergence has been a problem in the past.

“I believe again that’s a warning signal that things aren’t all rosy. (The divergence) is a good reason to anticipate trouble for the equity market. I’d take action to avoid getting blow down by that hurricane.”

Intrigued? Get all the details. Watch the video now!





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Trader disclosure: On Mar 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long NXPI; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long MSFT; Joe Terranova is long JOY; Joe Terranova is long OXY; Joe Terranova is long LQD; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long FCX; Michael Murphy is long AKS; Michael Murphy is long BAC; Michael Murphy is long AND; Michael Murphy is long JOY; Michael Murphy is long PHM; Michael Murphy is long LPX

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