Many investors are wondering if now is the time to hop on the financials. Find out what Pete Najarian says will be his signal to buy.
Investors need to be patient and wait for entry points, Najarian says. “I think there’s still another shoe to drop in the financials . Until there’s a slowdown in negative news I don’t see an opportunity in the space.”
He recommends keeping a close on the VIX. That’s an index that measures the volatility of the S&P 500. Najarian feels the VIX will provide investors with a buy signal. “We’ve been creeping higher but have yet to see a violent spike. That’s when you get the best bang for the buck to the upside (with a violent spike). I’d wait for the VIX hit 30 before buying.”
If you’re looking for a trade in the meantime Najarian likes energy. “What’s been leading the market, is oil. I don’t know why you’d want to fight the trend.”