GO
Loading...

VIX Chart Suggests Stock Sell-Off: Citi Analyst

Friday, 31 Aug 2012 | 1:12 PM ET

VIX trend lines suggest that a stock sell-off lies ahead, a Citigroup technical analyst said Friday on CNBC.

On “Fast Money,” Citi FX Technicals Chief Technicial Tom Fitzpatrick pointed to a pattern going back three decades.

“So far, it’s five for five. When the VIX trades back to this trend line and bounce, which is what it did this month, you’ve seen a multi-month down move in the S&P and the months following,” he said.

How Will Stocks Perform in September?
Why September trading is all about Europe and the jobs report, with the FMHR traders. Meanwhile Tom Fitzpatrick, CitiFX, says the VIX is signaling a selloff in equities.

On the 10-year Treasury yield, there was historical downward pressure.

“Our bias is very firmly: We haven’t hit the lows there yet,” he said. “We think we’re going to go down somewhat between 1 and 1.2 percent.”

Trader disclosure: On Aug. 31, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long JPM CALLS SPREADS; Jon Najarian is long SBUX CALL SPREADS; Jon Najarian is long FB CALL SPREADS; Jon Najarian is long GOOG CALL SPREADS; Jon Najarian is long KO CALL SPREADS; Jon Najarian is long MCD CALL SPREADS; Jon Najarian is long UPL CALL SPREADS; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long INTC; Pete Najarian is long HPQ; Pete Najarian is long BAC CALLS; Pete Najarian is long MRK; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long HOV; Mike Murphy is long TWI; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long F; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Dennis Gartman is long Gold; Dennis Gartman is long Grains; Dennis Gartman is short YEN; Dennis Gartman is short EUR.

______________________________________________________
Got something to to say? Email 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 online, email fastmoney@cnbc.com.

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.