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Chart analyst Carter Worth breaks down his most important technical indicator

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There are many technical indicators for traders to choose from. For Carter Worth, there’s one that stands out above all others: volume.

“A lot of charters don’t look at volume. They say it’s all in the price action. … but volume is the essential criteria,” Worth, the founder of Worth Charting with more than three decades on the Street, told CNBC’s Dominic Chu in this special Pro Talks discussion available to all readers. “The study of volume and price volume correlation is the single most important thing one can do if one wants to engage in pattern recognition and studying price action trying to profit in the market.”

“[Philosophers] Camus and Sartre would argue that existence precedes essence, and in markets, volume precedes price,” he added.

(Pro subscribers can watch the full interview here.)

In this interview, Worth talks about:

  • How his career in finance began
  • His approach to chart analysis
  • The importance of a defined time horizon for investors

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Stocks making the biggest moves midday: AAL, AVGO, JPM

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Biggest banks planning to sue the Federal Reserve over annual stress tests

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A general view of the Federal Reserve Building in Washington, United States.

Samuel Corum | Anadolu Agency | Getty Images

The biggest banks are planning to sue the Federal Reserve over the annual bank stress tests, according to a person familiar with the matter. A lawsuit is expected this week and could come as soon as Tuesday morning, the person said.

The Fed’s stress test is an annual ritual that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends.

After the market close on Monday, the Federal Reserve announced in a statement that it is looking to make changes to the bank stress tests and will be seeking public comment on what it calls “significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements.”

The Fed said it made the determination to change the tests because of “the evolving legal landscape,” pointing to changes in administrative laws in recent years. It didn’t outline any specific changes to the framework of the annual stress tests.

While the big banks will likely view the changes as a win, it may be too little too late.

Also, the changes may not go far enough to satisfy the banks’ concerns about onerous capital requirements. “These proposed changes are not designed to materially affect overall capital requirements, according to the Fed.

The CEO of BPI (Bank Policy Institute), Greg Baer, which represents big banks like JPMorgan, Citigroup and Goldman Sachs, welcomed the Fed announcement, saying in a statement “The Board’s announcement today is a first step towards transparency and accountability.”

However, Baer also hinted at further action: “We are reviewing it closely and considering additional options to ensure timely reforms that are both good law and good policy.”

Groups like the BPI and the American Bankers Association have raised concerns about the stress test process in the past, claiming that it is opaque, and has resulted in higher capital rules that hurt bank lending and economic growth.

In July, the groups accused the Fed of being in violation of the Administrative Procedure Act, because it didn’t seek public comment on its stress scenarios and kept supervisory models secret.

CNBC’s Hugh Son contributed to this report.

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Stocks making the biggest moves midday: Nordstrom, Honda, MicroStrategy, Broadcom and more

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These are the stocks posting the largest moves in midday trading.

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