Quick Take: Selloff Is No Cause for Panic
NEW YORK ( TheStreet) -- Is Friday's slight selloff a reason to consider selling or just another dip that means a buying opportunity? Telling TheStreet's Debra Borchardt his thoughts is Keith Bliss, senior vice president of Cuttone.
All three major U.S. indices are in the red, as Japanese inflation ticked higher than expected and reports arrived that China is cutting back industrial production.
Cuttone said this price action is healthy in a bull market and actually supports a sustained move higher, with technical and quantitative indicators still pointing to higher prices over the intermediate- and longer-term.
He added that markets might move sideways over the next week or two, as earnings season wraps up and investors sort through a slew of economic data.Still, the S&P 500 making another run at 1,700 is certainly not out of the question, he said, but perhaps not as soon as next week. While he has liked the financials in the past, he said the buy-the-dip traders will be more broad based, and not as sector specific. Also, he added, the financials might be tied more to 10-year Treasury yields than to anything else, which will probably melt up over the short-term -- albeit, slowly. Cuttone concluded that the market might also be a little nervous about the Federal Reserve's possibly tapering its stimulus program, but he reaffirmed that for now, buy the dips. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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