A stock market setting new highs appears set to lure money that has been sitting on the sidelines, Craig Johnson of Piper Jaffray said Thursday.
"This bull market, in our opinion, is confirmed," he said. "And we think the bear market is officially dead."
On CNBC's "Fast Money," he noted that the broader market had broken through 2000 and 2007 highs, reaching a point where bearish investors would "start to capitulate."
"Eventually money will come out of fixed income, and then you really start to see this market work and work very well, so we still remain bullish," he said.
Johnson said that it while blue-chip stocks have provided a boost to the market, the next wave would be carried by secondary stocks.
"We are seeing sectors of the market, like the financials, look very attractive," he said. "We still think that they're very underowned at this point in time, so we think we're going to see some further rotation into financials, as we're starting to see a nice pickup in the relative strength with our work, and we're starting to see a lot of very attractive-looking groups and individual stocks inside of our work."
Trader disclosure: On May 23, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Weiss is long AAMRQ; Steve Weiss is long UAL; Steve Weiss is long AIG; Steve Weiss is long HIG; Dan Nathan is long VIX JUN 16/20 CALL SPREAD; Dan Nathan is short IWM; Dan Nathan is long CAT JUN 87.5/80 PUT SPREAD; Dan Nathan is long IBM JUN 205/295/285 PUT FLY; Dan Nathan is long JNJ JUN 87.5 PUTS; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MS; Anthony Scaramucci is long WMT; Anthony Scaramucci is long GOOG; Josh Brown is long VAW; Josh Brown is long F; Josh Brown is long IEO;
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For Craig Johnson
Analyst Certification—Craig W. Johnson, CFA, CMT, Senior Technical Analyst; The views expressed in this report accurately reflect my personal views about the subject companies and securities referenced in this report. In addition, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report; Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.