The technical charts still look “relatively positive” and we have “quite a ways to go” in the long-term, according to Robert Sluymer, technical strategist at RBC Capital Markets, and John Wilson, chief technical strategist at Morgan Keegan.
“However, there’s a lot of churning underneath the indexes,” Sluymer told CNBC.
“Below the general uptrend of the market, there’s a rapid rotation from one group to the next, and that’s the difficulty that institutional managers have to focus on.”
For example, “no one was interested” in the energy sector in the fourth quarter, but the sector’s seen a “tremendous run” in the current quarter, noted Sluymer.
“And you’re now seeing a consolidation in one of the cyclical areas in the market,” he continued. “So [energy] takes a pause and other areas are coming on.” (Scroll down for his full picks.)
In the meantime, Wilson said he continues to be bullish on the markets.
“Corrections have been short, sweet and sometimes violent but buying tends to come in rapidly,” he said. “One area that I think is setting up to be a pretty good trade right now is semiconductors.”
IShares MSCI Japan SC
Scorecard—What They Said:
- Sluymer's Previous Appearance on CNBC (May 2, 2011)
- Wilson's Previous Appearance on CNBC (Dec. 20, 2010)
More Market Intelligence:
- Large vs. Small Caps—What to Buy: Stock Pickers
- Stocks vs. Commodities—Pros Pick the Better Investment
- How to Prepare for Volatile Markets: Strategist
CNBC Data Pages:
Wilson personally owns SMH, RBCN and UPL.
No immediate information was available for Sluymer or his firm.