S&P 500 (SPY) is Going Higher Because Analyst Carter Worth Says So

July 16, 2012 9:49 AM EDT
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Oppenheimer's highly respected Technical Analyst, Cater Worth, thinks the S&P 500 is poised to advance to 1420 in the days and weeks ahead. Worth has been consistently ranked as a top technical analyst by Wall Street insiders, so his opinion on market direction is notable.

In a research report today titled "Money in Motion", Worth said "the next directional move will be up, not down. This judgment—like all conclusions featured in "Money in Motion"—is based on a bottom-up analysis of thousand of charts patterns performed on Sunday afternoon and evening."

According to his analysis, the continued strength in defensive Soap & Cereal names and Healthcare names shows no signs of abating. Another positive sign is the continued strength in non-headline financial stocks such as American Express (NYSE: AXP), US Bancorp (NYSE: USB), Wells Fargo (NYSE: WFC), Chubb (NYSE: CB) and Simon Property Group (NYSE: SPG). Stabilization in beaten-up "headline" financials like Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Bank of America (NYSE: BAC) and Charles Schwab (NYSE: SCHW) is another good sign.

Considering depressed valuations, many industrial stocks have "pop" potential and offer investors an asymmetrical risk/reward. Names that qualify would include: Caterpillar (NYSE: CAT), Dover (NYSE: DOV), Eaton (NYSE: ETN), Timken (NYSE: TKR), Baker Hughes (NYSE: BHI), Halliburton (NYSE: HAL), and Cameron Int'l (NYSE: CAM) among many others, said Worth.

Worth thinks breakout potential in the following stocks have bullish implications for the overall market: Monsanto (NYSE: MON), Johnson & Johnson (NYSE: JNJ), Bristol-Myers Squibb (NYSE: BMY), Capital One (NYSE: COF), Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), General Electric (NYSE: GE), Heinz (NYSE: HNZ) and Time Warner (NYSE: TWX).

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