While stocks have the potential to go higher, Scott Redler, chief strategic officer at T3live.com, and Mike Rubino, CEO of Rubino Financial differed on when the rally will stop.
“For the first quarter, the new objective is between 1,275 to 1,300 [on the S&P 500],” Redler told CNBC.
“As we head into this quarter, technically, there’s been a lot to like—you’ve have a great sector rotation, stock pickers getting rewarded, high beta techs making new highs yesterday, value techs making moves—but still, you need to stay disciplined and stay long.”
Redler said there are “a lot of stocks this year” that will help make investors “a lot of money,” such as Bank of America , Apple , Cisco , Google and Citigroup .
In the meantime, Rubino said he is only bullish short-term.
“We’re looking at 1,350 on the S&P up through March, but the Fed is creating a third bubble in the head and shoulders patternthat has gone back 10 years and it’s going to be the mother of all head and shoulder pattern if it breaks to the downside,” Rubino warned.
Rubino cautioned that if the pattern is broken, the Dow could plunge to the 2,000 to 4,000 area.
“[The Fed] keeps throwing money at the market to make everyone happy and [people] keep asking for more, when all we need is detox," he explained. "It’s not fun, but more debt doesn’t help.”
In addition, Rubino said earnings are going to start declining.
“Ten percent of people in our economy aren’t buying goods because they are unemployed, so I don’t see how earnings can continue to accelerate going forward.”
Scorecard—What They Said:
- Redler's Previous Appearance on CNBC (Dec. 30, 2010)
- Rubino's Previous Appearance on CNBC (Nov. 30, 2010)
More Market Views—Across the Board:
- How to Trade a Weaker Dollar: Pros
- US Economy Looks Better Than Expected: Gartman
- Cramer: The Dow’s Top 3 Stocks for 2011
CNBC Data Pages:
No immediate information was available for Redler or Rubino.