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Quick Take: Stocks Are Up But Don't Exhale Yet

NEW YORK ( TheStreet) -- The markets might be higher now, but things may not be as good as they appear, Ben Willis of Albert Fried told TheStreet's Debra Borchardt.

"We're still in the throes of a major market correction," he said. Despite the strength in the equities so far this year, Willis says we might have a bit more downside left in this current correction as the focus grows on interest rates and whether the Federal Reserve will end its stimulus efforts.

Global markets have also been volatile as investors try to position themselves amid the uncertainty from central banks, which have held rates very low for the past several years, he added.

"We know the Fed is going to start tapering at some point," he said. While the Fed has indicated it will let investors know well in advance of its tapering efforts, Willis said he wouldn't be surprised if the central bank has already started slowing on buying mortgage-backed securities.

He pointed out that 30-year mortgages have seen a 50-basis-point jump in a relatively short period of time, indicating that something isn't right.

"We're getting a very clear signal that within six months you'll see tapering from around the world," he said.

What about a deeper correction? Willis told Borchardt he "hopes" there is one, adding that "corrections are not bad."

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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