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Making Money From Market Plunge

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As the financials plunge and the S&P drops to its lowest level since mid-September, where's the trade?

Oppenheimer chief market technician Carter Worth says we’re in a highly volatile period. And great volatility typically takes place at a market’s bottom or a market's top. This isn’t the bottom, he says. The environment smells of recession and stocks are leading the way.

How do you interpret the news blows of the financials?

Not only are financials a significant portion of S&P 500 but they are the lifeblood that makes the whole global financial system work. Like a hole in the ozone, there’s a hole forming in the balance sheets of these financials stocks.

How do you recommend trading this market?

Certainly don’t buy extended names, says Worth. At Oppenheimer we are singling out very extended names to short.

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Price
 
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S&P 500
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Trader disclosure: On Nov. 7, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CSCO); Najarian Owns (AMZN) Options, (C) Options, (DISH) Options, (GOOG) Options, (LDK) Options, (YHOO) Options; Finerman's Firm Owns (AEO), (WMT), (TWX), (TSO), (YHOO); Finerman's Firm Is Short (MDY),Short (IWM),Short (IJR), Short (MBI),Short (LEH),Short (MER); Finerman's Firm And Finerman Own (GS); Finerman's Firm Owns Russell 2000 Puts; Seygem Asset Management Owns (EEM), (F), (GFI), (GLD), (HMY), (LDK), (YHOO); Finerman's Firm Is Short (SPY)