In the last minutes of the market the Dow plunged again recording its 6th straight losing session. Trading was extremely volatile amid uncertainty about whether a coordinated worldwide cut in interest rates would be enough to avert a global recession.
If there’s one thing traders are can agree on, it’s that they feel beaten up and there’s little relief in any direction.
“One of the characteristics of this market is that it’s totally unique,” explains celebrated investor Laszlo Birinyi on CNBC. “There are no maps and no guidelines. Any significant move you make is as much as guess as anything else.”
Pick Stocks Not Sectors
But Birinyi does have some advice for investors. Pick stocks not sectors. “Warren Buffett buys stocks not sectors or groups and that’s one of the lessons for this market.”
For example, "I saw EnerPlus Resources was down 20% over two weeks. That seems attractive." But we take that to mean he wouldn't buy the Energy Select Sector SPDR .
"And Apple is probably grossly overdone," he says. But you should probably stay away from the Technology SPDR .
Signs of Relief
And if you’re looking for a little relief, there might be some coming. “I think the next big move is probably higher, adds Dan Niles, CEO of Nueberger Berman Technical Management. “I’m not sure that we’ve seen the bottom but we’ve probably seen a bottom. But it’s early to say we’ve fundamentally found a floor.”
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