To see Carter Worth's complete analysis please watch the video.
On the Fast Money Halftime Report we posed a similar question. We asked the traders, with so much euphoria in the market should you position for the next leg higher or the end of the line?
Following is a recap of that conversation:
I truly believe this is a breakout in the market, said Joe Terranova.
The options traders are saying the same thing as Joe, explained Brian Stutland of Stutland Equities. They’re definitely playing a breakout to the upside. All week I’ve seen upside call buying in the S&P options. I think the next stop could be 1000 on the S&P.
I’m concerned, countered OptionMonster Jon Najarian. When we get to big numbers like 9,000 on the Dow investors start to switch over and start protecting their gains. I’m seeing a higher volume of call selling and put buying.
I expect we'll soon see money start flowing into safer areas of the market, added Patty Edwards of Storehouse. Yes we have a breakout but I don’t think we have the earnings power to support it. I expect to see a cold shock of reality follow this euphoria.
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Trader disclosure: On July 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (MCD), (AXP), (AMZN), (MSFT), (QCOM), (SUN), (FTO), (SU), (GS), (APA), (GOOG), (IBM), (INTC), (XBI), (BNI); Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (RIG), (WMT); Finerman's Firm Is Short (USO), (IJR), (IYR), (IWM), (MDY), (SPY); Finerman's Firm Owns (WFMI) Calls; Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Grasso Owns (BAC), (BA), (COST), (CSCO), (V), (WMT), (CLF); Grasso's Company Owns (ABT), (MSFT), (GERN), (NYX), (XOM), (SDS); Grasso's Company Is Short (QQQQ)
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