Laszlo Birinyi: “Not a Time to Buy”
Posted by Larry Doyle on March 28, 2009 12:10 AM |
Our Economic All-Star, Laszlo Birinyi, believes . . . Market Extremes Not a Time to Buy.
Based on Birinyi Associates’ proprietary market and sector indicators, we are at short-term extremes. Traders with aggressive accounts should look to take profits, and investors with more long-term accounts should be cautious on taking new positions. Consumer discretionary, technology, and materials stocks are the most extreme, while health care and utilities companies have lagged.
The Overbought/Oversold indicators are short-term measures, while the Momentum indicators are for the longer term. The momentum indicates the market can certainly go higher, but we have had an abrupt move and some consolidation should be expected.