The market is way ahead of itself and it is time to sell into the rally, said Peter Costa, president of Empire Executions, and Dave Rovelli, managing director at Canaccord Adams.
“Right now, I don’t think [the markets are] going to continue in an upward direction,” Costa told CNBC. “We’re going to want to pull back a little bit.”
Costa said he still thinks the market will reach the Dow 9,000 level around August, but it’s not necessarily a good thing to get there too early.
“As a matter of fact, I’d be selling into this rally today,” he said. “I am bullish — but for today and the next couple of weeks, I’m a little bearish and a little skittish on the market.”
Rovelli agreed that it is time for investors to take some profits.
Although the credit markets have eased, there is still a lot of uncertainty in the markets, government, and companies, he said.
“If new money comes in, you sit on the sidelines and wait for a better entry point,” said Rovelli.
“At this point, you don’t want to start shorting stocks…but as we get closer to 1000, you’ve got to take profits, and as we get to 1,000 on the S&P it’s a psychological level — we’re not going to get over it. You have to look at companies and start shorting stocks.”
No immediate information was available for Costa or Rovelli.
CNBC's Companies in the News:
- Citi Makes $58 Billion Swap Deal With Government
- Goldman Sachs CEO Sees Long Recession
- Visa's Decline In US Payment Volume Stabilizes