Kicking off Fast Money’s Chartology Week is the number one technical analyst on The Street according to “Institutional Investor,” Jeff DeGraaf.
(*It’s worth nothing DeGraaf was Chief Technical Analyst at Lehman Brothers before joining ISI, where he currently serves as a Senior Managing Director and heads the technical analysis team.)
DeGraaf looks at a tech chart first which suggests to him that tech is turning higher. Consequently he thinks the sector has the ability to outperform. Also DeGraaf likes that tech performed well when the market was weak.
Pete Najarian reminds the panel that tech rallies in the second half of the year.
DeGraaf next looks at a Fedex (FDX) chart which suggests to him that that the industrials and the transports are not acting in unison. He calls the trend “a big yellow flag” and admits he’s concerned long term.
Guy Adami adds that he’s also cautious about Fedex.
Finally DeGraaf looks at a gold chart. He likes the pattern but feels gold has gone too far too fast. He recommends looking for a gold pullback before buying.