Stock Picks for 'Dow 8000' Bounce
Question: When will we see a return of the kind of leverage that propelled the last bull market?
Answer, from Stockmarket Mentor's Dan Fitzpatrick: Never.
"What we've effectively done is take away a lot of the buying power that had been pushing the market higher," he told CNBC. That said, he's been looking for a big upside market move, and he has some recommendations for stock investors to ride it on.
"We absolutely have been ripe for a bounce; I'd say the ceiling, probably, Dow 8000, maybe S&P 800," he said.
So what does he like?
"I think you've got to trade what the market is looking at," he said. "Right now, the market's looking for recovery; I'd be looking at semiconductors, like National Semiconductor; Freeport McMoRan, copper, is good; I like gold, but not here — it's way over-owned; it needs to come back.
"I think oil's bottoming; I think you've got to look at Transocean."
Disclosure information for Dan Fitzpatrick was not immediately available.