Stocks will 'get ugly' this year: Technician

Crystal ball: Stocks, gold & bonds

After another battering for U.S. stocks Friday, investors need to change their expectations for the rest of the year, one technician said.

"I think we've already hit our top on the year. I think it's just going to get ugly," said Dan Fitzpatrick, president and technical analyst at Stock Market Mentor, in a CNBC "Power Lunch" interview.

The Dow Jones industrial average plunged 530 points, ending its worst week since September 2011. Both the Dow and Nasdaq closed in correction territory, or more than 10 percent lower than their all-time intraday highs this year.

Read MoreSo, just how bad was the market this week?

As negative sentiment shook the major averages, experts offered their take on how to handle stocks, bonds and gold moving forward.


Fitzpatrick stressed that investors should stay patient before "jumping in" on any weakness. The "buy the dip" saying may not work for the rest of the year, he added.

"We're not dip buyers anymore. We're rally sellers," he said.

Read MoreHow two experts are playing the global markets

Investors should resist "panic" and selling at a market bottom, Fitzpatrick added.


A variety of factors will converge to push bond yields lower in the coming months, said John Brynjolfsson, managing director of Armored Wolf. The yield on the benchmark 10-year Treasury note dipped Friday, touching a session low of 2.0278 percent.

Pressure on inflation through a dip in commodity prices and central bank bond buying programs are both bullish signs for bonds, he said. Fears of a global slowdown in China as well as emerging markets like Turkey and Brazil will contribute to higher prices and lower yields, Brynjolfsson added.


Open interest in gold hit its highest all year on Friday, said JJ Kinahan, chief strategist at TD Ameritrade. U.S. gold futures for December settled up 0.6 percent at $1,159.60 an ounce.

"That is one sign that people are very nervous and looking for a place to put their money," he said on "Power Lunch."

He noted that the "real test" will come when the metal approaches $1,200 per ounce.