A Bank of America (BofA) analyst is recommending one S&P 500 play as the stock market is surging.
In a new CNBC interview, Paul Ciana, BofA Securities head of technicals research, says investors may want to protect themselves against a sudden S&P 500 correction as bearish signals flash.
-->“When we look at the S&P 500 technicals, there are a few concerns. One is some of that seasonal weakness that comes into September, but also some of the oscillator divergences. So the rally into almost 6,500 slowed down according to momentum and trending indicators. So in August, what we recommended was trying to hedge S&P longs while we’re hitting new all-time highs. And we still like that view.”
Ciana also says that an S&P 500 decline below 6,200 points may signal the start of a bearish trend.
“S&P 500, in round numbers, we’re in a range between 6,200 to 6,500. I think if we’re breaking 6,200, which was a key low about six weeks ago or so, then we could be in a deeper decline and a worse scenario. But until then, it looks more range-bound consolatory than it does look mega-bearish.”
The S&P 500 closed Friday at 6,466, up more than 96 points on the day.
Lastly, the analyst says that platinum is presenting a solid opportunity after a recent correction.
“We recommended buying platinum back near $1,000, had some big breakouts, and it’s dipping no,w and we like to say buy the dip and get ready for the rip.”
Platinum is hovering around $1,376 per ounce at time of writing.
