Jeff Saut: Market is Nearing Bottom

By on August 21, 2015

Jeffrey Saut - Raymond JamesJeffrey Saut, chief investment strategist of Raymond James Financial, was interviewed on CNBC this morning.

Saut made his remarks a day after U.S. equities recorded their worst trading day in about 1 1/2 years. The DJIA fell nearly 360 points, while the S&P 500 turned negative for the year, as global growth concerns weighed on investor sentiment.

Saut said the market is only about 4 1/2 percent off its high. Saut noted that the CNN Fear Index is near its most negative readings since 2012 while the NYSE McClellan Oscillator is about as oversold as it gets. “To me it looks like capitualation,” Saut added.

“Our timing models call for a low between Aug. 13 and Aug. 18, with a plus-or–minus three-day margin of error, so today it feels like capitulation,” Saut said on CNBC’s “Squawk Box.”

“We’re nearing the bottom. We knifed through the July support yesterday. It was pretty ugly. You would look for some kind of bottom either sometime today or the middle of next week,” Saut added.

“I’ve been in this business for over 45 years and I’ve seen this act before,” he said. “It’s kind of like pornography. You know it when you see it.”

When later pressed for the indicators in his model, Saut responded that they were proprietary.

Back in February, Saut said oil may have bottomed (link).

One Comment

  1. Montresor

    August 24, 2015 at 10:34 am

    Saut is on CNBC right now saying the low will be made today or tomorrow. “We’re still in a secular bull market,” Saut added.

    AS info, the Dow was down over 1,000 points shortly after the open.

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