If you watch Fast Money regularly, you might remember that on October 13th Carter Worth was among the first chart watchers to signal a bottom.
Although his call might have been a tad early, the S&P remains stuck in a range -- and that's exactly how Worth interpreted patterns in the charts.
So we couldn’t help but wonder, what do the charts suggest to him going forward? Melissa Lee asked Worth on CNBC's Closing Bell.
If you look at charts of the three largest gold stocks Barrick (ABX), which you see here or U.S. Gold Corp (GG) or Newmont (NEM), each has rallied 100% off their October lows, while gold in the same period has only moved about 25%. (The gold chart is below)
In other words, the gold stocks have doubled but gold itself hasn't moved nearly as much. The assumption is that they hit their heads right here.
Our bet is that oil is overdone on the downside. I’d sell puts and wait it out. Talk of $20 a barrel is probably as silly as talk of $300. Take the opposite side of the trade and get long.
Our hunch is that there will be an abatement of volatility and that we stay in the apathy phase, that we’re in now. We don’t think the market does anything surprising in January, but rather trade in a range that’s persisted since October.
To see our interview with Carter Worth please watch the video!