Looking at the broad market, Saut concedes there are a slew of negative signs but he isn't terribly worried. He thinks there are plenty of constructive signals too.
“If you look at LA port traffic it’s not suggestive of a double dip,” he told us.
And during our August interview he added that if history was any indication, the next big move should be higher.
Saut compared the current market malaise is similar to a pattern that emerged over 30 years ago. “I’m using the Oct ‘78 and Oct ‘79 declines as a pattern,” he explained. “They came out of nowhere” just like the current declines and the trends are remarkably similar.
At the time markets made a selling climax and sharp throw back rally, like we’ve just seen and we tested the lows.
That sounds a little complicated, but the take away is simple. "The Oct ’78 bottoming affair took 6-7 weeks and the Oct ’79 took 4-5 weeks. “Both of those sequences were followed by 13% rallies."
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Trader disclosure: On Sep 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss is short BTU; Weiss is short CNX; Weiss is short TBT; Weiss is long QCOM; Weiss is long EUO; Weiss is long SDS; Weiss is long CDX; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long PCP; Terranova is long CF; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Finerman owns HPQ; Finerman owns YHOO; Finerman owns AAPL; Finerman owns BAC leaps; Finerman owns IBM and short calls; Finerman is long JPM; Finerman owns MSFT; Finerman owns ORCL; Finerman’s firm owns AAPL short calls; Finerman’s firm owns BAC; Finerman’s firm owns GOOG; Finerman’s firm owns JPM leaps and long puts; Finerman’s firm owns MSFT and short calls; Finerman’s firm owns ORCL; Finerman’s firm owns IWM; Finerman’s firm owns MDY; Finerman’s firm owns SPY; Cortes is long SO; Cortes is long CAG; Cortes is long Treasuries; Cortes is short EUR; Cortes is short AUD; Cortes is short S&P Futures; Stutland is long TLT; Stutland is long CSCO and has short calls; Stutland is long IBM and has short calls; Stutland is long INTC and has short calls; Stutland is long QCOM and has short calls; Stutland is long GLD and holds long option positions in calls and puts; Stutland is long TLT and has short calls and short puts; Stutland is long NLY and has short put spreads ; Stutland’s firm is a market maker of VIX
For Mike Vorhaus
For Jim Iurio
Iuorio has long calls in VXX
For Rob Enderle
HPQ is a client of Enderle Group
For Jeff Saut
Raymond James is market maker of LINE
CNBC.com with wires.