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Market Analyst: We're Going Back to S&P 1250

Stock markets are on the longest winning streak since August 2009—will they keep climbing today or will we see some profit taking by market close? Alan Knuckman, senior market analyst at Agora Financial and Phil Dow, managing director at RBC Wealth Management shared their views.

Energy Stocks Lag Markets

“I think we’re going to move forward—I’m positive and optimistic,” Knuckman told CNBC.

“Technically, we’re going to go back to 1,250 in the S&P, which was the breakout point from the fall of 2008 when we started the decline.”

Knuckman said he sees a potential upside in commodities, as they have not even retraced 50 percent of their value since the last market drop.

“Some stock indexes have even retraced a full 100 percent,” he explained.

“So I still see a 20 percent upside in commodities, just to get up to that neutral 50 percent level where we’ve bounced off those lows and gotten back to somewhat more equilibrium.”

In the meantime, Dow said he is focused on companies that can grow their dividends.

“Right now, it’s not too hard to find leading companies that do international business, that trade at a discount to the market multiple of about 14, where the yield is better than the 10-year Treasury—and to me, that’s the big opportunity,” he said.

Speaking on the health care reform plan, Dow said the bill will be “much weakened and much less onerous” once it’s finally passed.

“It will not impact companies like the biotechs that we originally thought it might,” he said. “I think buying any group of stock is dangerous right now. You have to buy best of breed companies in specific areas.”

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No immediate information was available for Dow or Knuckman.