Bill Strazzullo told CNBC Friday the Dow Jones industrials can get as low as 9000, and that would be a buying opportunity for investors.
"What you’ve got to get your arms around is what’s the new trading range," said the chief market strategist at Bell Curve Trading, a longtime market bear.
On the Standard & Poor's 500 , "you want to be reducing your exposure" in the 1200 to 1250 range and adding stocks at the low point of 950 to 1000, he said.
For the Dow, sell at the upper end of the range, 11300 to 11700, Strazzullo said, and buy at the lower end of the range, 9000 to 9400.
"So if you have your shopping list together of stocks or ETFs you want to own, try to buy them around 1000 in the S&P and 9000 in the Dow. I don’t think you’re going to get another opportunity."
Why does Strazzullo think the Dow could get as low as 9000? "The markets are doing what they always do, the predictable, understandable thing. They’re coming back to fair value [although] not what I think is fair value."
He said the world's major indices bottomed in early 2009 and all are trying to get back to where they were trading in 2007 and 2008.
"Across the board the markets hit 75 percent of that objective," he said. "That’s why I’ve said the risk/reward doesn’t make sense. It's like walking through a mine field to pick up a quarter. There's very little gain and an awful lot to lose."
What would make him less bearish? "If the S&P gets above 1250, that would tell us that you’re getting back into the higher range," he said. "If you start to see the Dow back above 11700, that would tell me that basically the worst is over."
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Disclosures:
Disclosure information was not available for Bill Stazzulo or his company.