Market in ‘Pause-and-Ponder’ Mode: Stoltzfus

The stock market rally will resume after a brief period to factor in corporate earnings, Oppenheimer Chief Market Strategist John Stoltzfus said Thursday on CNBC.

“Overall, the rally is set to resume,” he said on “Fast Money.”

The recent pull-back, Stoltzfus said, was due to the stock market’s tempered views on earnings.

(Read More: Is the Stock Market Rally Over? Pros Are Split)

“In the short term, it remains a pause-and-ponder,” he said, adding that his year-end S&P 500 target remained 1,450.

(Read More: S&P Still on Track to Hit 1,575 Year-End: Dwyer)

Stoltzfus said that level sets up for higher levels into 2013.

“I think we could easily go through the 1,450 and then after the election, after the ‘fiscal cliff’ issues are dealt with, what I think we’re going to find is that the market will then pause and ponder again until we break out into the new year,” he said.

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The so-called “fiscal cliff” would trigger automatic federal spending cuts.

Stoltzfus said that his top sector picks were materials, energy, financials and consumer discretionary.

“I’m looking ahead for growth to reassert itself when we get into next year, so I’m going to want to buy these areas on weakness right here. I don’t want to chase them later on,” he said. “I think materials looks like a good play for 2013. We’re going to see China will add plenty of support for its economy, add liquidity, stimulus. Europe is going to keep progressing, and the U.S. will prosper.”

Trader disclosure: On Oct. 11, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long MRK; Stephen Weiss is long BAC; Stephen Weiss is long AIG; Stephen Weiss is long QCOM; Stephen Weiss is short RIO; Stephen Weiss is short CAT; Stephen Weiss is short AKS; Stephen Weiss is short AAPL Puts; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long SBUX; Stephanie Link is long BMY; Mike Murphy is long AAPL; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long S; Mike Murphy is long PFE;

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