Buy on Dips—Dow Will Fall Near 8,800: Strategist
Stocks fell Tuesday and investors wonder if the decline will continue. So are markets in for the much-expected pullback? William Greiner, CIO of Scout Investment Advisors and Scott Redler, chief strategic officer at T3live.com shared their insights.
“Last week, we started to see technical signs that the markets were getting tired,” Redler told CNBC. “The technical signs combined with people being more cautious [is] helping fuel this decline.”
Redler said he is “short” on the markets and told investors to be in “a little bit of cash” and to find retracement levels to buy back. “Buy the bigger dips,” he said.
“We’re going to look for opportunities to get long around 976 on the S&P, that should be around 8,800 to 9,100 on the Dow—that should be a decent level to buy into this dip if you want to be long on this market moving forward,” he said.
In the meantime, Greiner said although he is bearish in the short-term, he has a bullish perspective on the markets long-term.
“Our outlook is calling more for a U-shape recovery where the banking system is going to try to heal itself and actual demand for capital this time around is going to be a lot less intense than in the past recovery because consumers are tapped out already,” he said.
No immediate information was available for Greiner or Redler.
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