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Dark Cloud Over The Street

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Despite falling oil the Dow plunged by more than 300 points as investors went scrambling for the exits.

“Oil breaking lower has not been a market driver,” explains Jeff Macke on CNBC’s “Closing Bell” “and the financial cloud that looms over the Street continues to grow darker. You can’t be confident if the financials are going to stick you in the side every morning.”

Other catalysts compounded the bearish mood with lackluster August retail sales providing a strong headwind for the market. Also new concerns surfaced that sluggish growth was emerging abroad. The president of the European Central Bank, Jean-Claude Trichet, said euro zone data points to weakening growth at midyear.

Construction and mining equipment maker Terex Corp compounded the gloom when it cut its 2008 sales and profit forecast, citing weak demand in Western Europe and North America.

But it’s always darkest before the dawn and Macke thinks smaller investors might have an advantage in this market.

“These big investors can’t get out fast enough. The advantage for the folks at home is that they can buy panic stricken stocks and then get out.”

“Shorten up your swing – take profits faster, counsels Macke. "That way you’re not going to get stuck in these horrible whipsaws.”

How is Macke playing it?

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“I’m long the dollar because the fundamental argument is that our financial crisis isn’t as bad as the rest of the world. And the technicals looks good. Also I’m long Wal-Mart . I see technical resistance but this retailer is executing well,” he says.


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