A major sell off on Wall Street pushed the Dow down by seven percent for the year. Is it time to get out of Dodge?
Friday’s market action was “a mess”, according to Carter Worth, Chief Market Technician At Oppenheimer. Investors generated an incredible demand for hard asset commodities while the financials and other sectors rolled over.
Worth is confident that this is a bear market and will remain one for a while. “My instinct is to stay on the bear side,” he says. “Yet most people are bullish and that in and of itself is a problem.”
If the market drop makes you want to sit in the corner and cry than Worth has some harsh words for you. “Just sitting and letting things deteriorate is unacceptable,” he says, “take some action whether it’s writing calls against longs or do selective short selling. But investors have to do something. I think the seduction is telling yourself that this is the bottom when it probably isn’t.”
But where to hide, Carter? “Certain tech names look impressive and the relative strength is noteworthy, Worth says. “If I had to zero in on one spot to hide it’s in the semiconductor stocks.”