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"Time for Aggressive Buying Has Passed": Stocks Slump to Start Q4
Posted Oct 01, 2009 04:04pm EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, SPY, DIA, RTH, ^IXIC, QQQQ
Stocks opened the new month and new quarter with a tumble following disappointing reports on jobless claims and the ISM manufacturing survey.
The Dow fell 2.10%, the S&P lost 2.58% and the Nasdaq shed 3.06% Thursday, once again raising questions about the rally's sustainability.
Bill Strazzullo, chief market strategist of Bell Curve Trading in Boston, isn't ready to declare the bull dead, but he is advising clients to reign in their horns.
"The time for aggressive buying has passed," Strazzullo says, suggesting investors go into "harvest mode" and trim positions where they've had the biggest gains.
Unlike bulls like Neil Hennessy, Strazzullo does not believe the market has embarked upon a multi-year rally, such as the one that emerged from 2002-2007 in the aftermath of the bursting of the tech bubble. Nor does he see "the market unraveling and making new lows" as the bears predict.
Instead, Strazzullo forecast "a slow grind" ahead with the market settling into a trading range "for the next couple of quarters at least," with 925 on the S&P 500 being the point of equilibrium.
Posted Oct 01, 2009 04:04pm EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, SPY, DIA, RTH, ^IXIC, QQQQ
Stocks opened the new month and new quarter with a tumble following disappointing reports on jobless claims and the ISM manufacturing survey.
The Dow fell 2.10%, the S&P lost 2.58% and the Nasdaq shed 3.06% Thursday, once again raising questions about the rally's sustainability.
Bill Strazzullo, chief market strategist of Bell Curve Trading in Boston, isn't ready to declare the bull dead, but he is advising clients to reign in their horns.
"The time for aggressive buying has passed," Strazzullo says, suggesting investors go into "harvest mode" and trim positions where they've had the biggest gains.
Unlike bulls like Neil Hennessy, Strazzullo does not believe the market has embarked upon a multi-year rally, such as the one that emerged from 2002-2007 in the aftermath of the bursting of the tech bubble. Nor does he see "the market unraveling and making new lows" as the bears predict.
Instead, Strazzullo forecast "a slow grind" ahead with the market settling into a trading range "for the next couple of quarters at least," with 925 on the S&P 500 being the point of equilibrium.
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support Posted: Fri Oct 02, 2009 12:47 pm Post subject:
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