Technical Analyst Carter Worth Calls S&P 500 'Dead Money'
Tweet Send to a Friend
Get Alerts KO Hot Sheet
Price: $42.25 -0.21%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.9%
EPS Growth %: -48.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.9%
EPS Growth %: -48.3%
Trade KO Now!
While stocks are surging Wednesday after the fiscal cliff deal, Oppenheimer Chief Market Technician, Carter Worth, called the S&P 500 "dead money." The thesis is a continuation of a view that began in late November. Worth reasons that the S&P 500, at best, is likely to remain stuck at the 1,400 - 1,430 level for weeks and might head back down to 1,350.
"The primary issue we have with the market is the large and growing number of 'Bullish-to-Bearish' Reversals found among important super cap stocks composing the S&P 500," said Worth.
Worth reviewed the chart patterns of a dozen of marquee names and points out that all have taken on "rollover casts" with their respective smoothing mechanisms flattening or already sloping down.
His analysis includes stocks like Coca-Cola (NYSE: KO) , IBM (NYSE: IBM), Apple (Nasdaq: AAPL), AT&T (NYSE: T), Philip Morris (NYSE: PM), PepsiCo (NYSE: PEP), Merck (NYSE: MRK), Colgate (NYSE: CL), Microsoft (Nasdaq: MSFT), Mondelez (Nasdaq: MDLX), Target (NYSE: TGT), Wal-Mart (NYSE: WMT), and Verizon (NYSE: VZ).
With regards to the S&P 500 itself, the analysts described it as "walking the line [and] trying to maintain its uptrend."
"Any weakness in the intermediate period ahead and it becomes much harder to claim that the market's upward trajectory is intact. We ourselves are skeptical," concluded Worth.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"The primary issue we have with the market is the large and growing number of 'Bullish-to-Bearish' Reversals found among important super cap stocks composing the S&P 500," said Worth.
Worth reviewed the chart patterns of a dozen of marquee names and points out that all have taken on "rollover casts" with their respective smoothing mechanisms flattening or already sloping down.
His analysis includes stocks like Coca-Cola (NYSE: KO) , IBM (NYSE: IBM), Apple (Nasdaq: AAPL), AT&T (NYSE: T), Philip Morris (NYSE: PM), PepsiCo (NYSE: PEP), Merck (NYSE: MRK), Colgate (NYSE: CL), Microsoft (Nasdaq: MSFT), Mondelez (Nasdaq: MDLX), Target (NYSE: TGT), Wal-Mart (NYSE: WMT), and Verizon (NYSE: VZ).
With regards to the S&P 500 itself, the analysts described it as "walking the line [and] trying to maintain its uptrend."
"Any weakness in the intermediate period ahead and it becomes much harder to claim that the market's upward trajectory is intact. We ourselves are skeptical," concluded Worth.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- 50-Day SMA Crossers 05/20: (ELN) (ACI) (AAPL) Above; (MRK) (TLAB) (CLSN) Below
- UPDATE: GameStop (GME) Slides Into Close
- Like Microsoft (MSFT) Xbox 360 Games? Don't Buy an Xbox One...
Create E-mail Alert Related Categories
TechnicalsRelated Entities
Standard & Poor'sComments
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
S&P 500
Kalberer on Jan 2, 2013 12:39 PMMark as Spam | Reply to this comment
1450 on S&P 500 this morning