Top technical analyst Louise Yamada shared her thoughts on the equity markets and discussed her research findings that many technology stocks are "extremely extended" in an exclusive interview for CNBC PRO with Mike Santoli.
On top sectors including technology: "It's the top technology names that are actually doing very well. And we haven't had [wider] participation – you might be getting a little bit in biotech, but one of the things that disturbed me as we did our last report a week ago is that we don't have the outperformance," said Yamada.
"Consumer staples doesn't have as many stocks as some of the others, but there are a few there that are looking under the weather, so to speak. Energy, of course, has had its multi-year bear … We don't want to catch a falling sword, but we'll wait for the repair process. I would say that financials has been a disappointment without the additional Fed coming in to raise rates again."
Yamada is heralded on Wall Street as a leading voice on market technicals. She was the top-ranked market technician multiple times in her career by Institutional Investor. Before founding her own firm in 2005, she was a perennial leader as the head of technical research at Smith Barney for 25 years. She the author of the book "Market Magic: Riding the Great Bull Market of the Century."
She also discusses:
- What gold's recent rise means for the markets
- Stock markets are "overdue" for a correction
- Critical questions to ask yourself when thinking about dumping a stock
The interview is exclusively for CNBC PRO subscribers.