Think you’ve found a safe haven to wait out the financial storm? Some ports might not be so safe, after all.
Oppenheimer chief market strategist Carter Worth tells us that if you’re parked in some consumer staple stocks, you might want to change gears and go elsewhere.
Take a look at this chart:
“History shows that when you get to the last gasp phase of a bad period, holdouts tend to give up the ghost,” Worth tells Dylan Ratigan on CNBC’s Closing Bell. As you can see from the chart here, “that’s exactly what we’re seeing with Wal-Mart.”
Now, think of Wal-Mart not as a retailer but as a consumer staple. It’s a major seller of soap, toothpaste etc.
From a technical perspective, “that phenomenon (of holdouts giving up the ghost) will likely spillover into other marquis consumer staple names including Procter & Gamble , Pepsi , Colgate and Clorox .
All these stocks are at break levels, he says, "and my presumption is that they’re going to break (lower)."