Approach With Caution, Nearing Bear Territory

As investors grapple with fits and starts in the market, some are beginning to whisper about bearish trends that are emerging.

Fast Money trader Guy Adami is among those rally skeptics. He thinks investors are “starting to wake up” and realize that the market is ahead of itself. And ahead of itself, in a big way.

He points to a number of negative trends but is especially bothered by the market action during this earnings season. He doesn’t like that stocks are selling off despite decent reports. “Not a good sign,” he says

And on Wednesday he tells the desk charts patterns don't look good. And not just any chart. We're talking charts of key stocks tied to global growth. We’re talking FedEx, Freeport McMoRan , US Steel and Caterpillar .

Take a look:

"Caterpillar is a major stock and it’s down 17%," says Adami. "At what point is that a bear market? Also the action in Freeport McMoRan I’ve talked about ad nauseum. That stock is technically broken. These are major moves."

It not that Adami is worried by these charts alone, it's that he's seeing a confluence of events and when taken together they're a cause for concern.

What's the bottom line? "The whole tape is vulnerable," he says.

What do you think? We want to know!

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Trader disclosure: On January 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU), (GS); Najarian Owns (AAPL) Call Spread; Najarian Owns (CTXS) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC) Leap, (BAC); Finerman Owns (BAC) Prefered, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Seymour Owns (AAPL), (BAC), (INTC)

For Tim Seymour:
Seygem Asset Management Owns (FCX)
Seygem Asset Management Owns (TSO)
Seygem Asset Management Is Short (VALE)
Seygem Asset Management Owns (X)
Seygem Asset Management Owns (PBR)

For Pip Coburn
Pip Coburn Invests In Buckeye Delta Fund
Buckeye Delta Fund Owns (AAPL), (ADBE), (ANSS), (RIMM), Arm Holdings plc, (GOOG)
Buckeye Delta Fund Is Short (NOK), (PALM), (MOT)

For Paul Miller
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (FITB)

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