On Monday investors ran for the exits with fears about the global economy again sending the market into a tailspin.
This time weakness was triggered by chatter that Greece may be looking to leave the EU somewhat soon.
The conjecture was sparked by Alexander Dobrindt, a leading German conservative who was quoted on Monday saying Greece should start paying half of its pensions and state salaries in drachmas as part of a gradual exit from the euro zone.
Also, the yield on the Spanish 10-year bond was last at 7.5 percent, well over what analysts consider a sustainable level
Are market headwinds getting just too strong? Not for the pros.
Trader Steve Grasso, director of institutional sales trading at Stuart Frankel, says on the floor of the NYSE where he works, pros are buying the dip. “1335 is a key technical level – and we bounced at 1337,” he explains.
Grasso takes it to mean the S&P isn't embarking on a sell-off but rather remains range bound and is currently at the lower end of its range. If you subscribe to that thesis, the strategy remains buy the dips and sell the rips.
Of course that begs the question – what should you buy?
Trader Stephanie Link, director of research at TheStreet, says, "I liked what I heard from Schlumberger . On the pullback I’m a buyer. And also I added to my position in JPMorgan . Tangible book is where Jamie Dimon is buying and its where I ‘m buying too."
Elsewhere in the market, Link suggests looking at Boeing. “If it gets to $70 ahead of earnings I’m a buyer. Eaton (results) suggest aerospace isn’t falling apart."
Trader Josh Brown, author of The Reformed Broker blog, suggests looking at McDonald’s . He thinks $85 will be support. And he likes Starbucks if it sells off to about $45 after earnings later in the week.