(This story is for CNBC Pro subscribers only.) It's time to buy stocks, according to Canaccord Genuity. Despite a volatile few months in the markets, the firm said six technical signs are pointing to positives for buying into equities. "Add equity exposure as six technical indicators suggest we are AT/NEAR an intermediate-term price low," Canaccord Genuity analyst Javed Mirza said in a note to clients on Sunday. Investors are fleeing riskier assets like stocks, as they brace for the economic fallout from the spreading coronavirus amid a shocking all-out oil price war. The Dow Jones Industrial Average cratered more than 2,000 points on Monday. The S & P 500 dropped 7.6% and the Nasdaq Composite fell 7.3%, alongside a historic plunge in bond yields. All the while, Mirza said technical signs are pointing to a potential bottom for stocks. Here's the list of buy signals: Sentiment Higher Price Lows Extreme Volume 4-Year Cycle Equity Indices deeply oversold Select "Risk-On" charts improving Mirza said a variety of sentiment indicators are at or near bearish extremes consistent with lows during previous bear markets. This means sentiment could be bottoming, according to the firm. Trading volume is also consistent with past bear markets. "Extreme Volume over the last few days on equity indices and equities suggests an intermediate-term price low is near/in place," said Mirza. Additionally, Friday's price action showed that stocks' low levels are moving higher, which means stocks could be in an uptrend. "Indices saw a higher low take hold in what appeared to be a retest of the recent lows," the firm said. "The late rally into the close was very positive, especially given that investors would have to hold those positions into a headline driven market over the weekend." Based on a 4-year cycle, the firm said its too early to see a major cycle peak. "Our 4-year cycle work suggests we are still in the early/mid-stages of a new 4-year cycle, which should see another year of upside," said Mirza. Canaccord also said the major averages are deeply oversold, making it an attractive entry point into stocks that aren't always this cheap. Finally, the firm said the "Risk-On" charts are improving, which means portfolio managers aren't strictly playing defense and "are selectively adding exposure to risk-on cyclicals despite the current pullback," said Mirza. — with reporting from CNBC's Michael Bloom.
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(This story is for CNBC Pro subscribers only.)
It's time to buy stocks, according to Canaccord Genuity.