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Stocks will break out of trouble and hit new record highs: Tony Dwyer

Wall Street may have significant buying opportunities.

Tony Dwyer of Canaccord Genuity believes a record recovery is expected following the recent market turmoil.

“I will move from now on Indigestion summer “At the end of the year,” said CNBC’s chief market strategist.Trading country“Tuesday.” We are not there yet. “

Dow and S & P500 just recorded them 4th consecutive negative session..The activities are: A sharp drop in the index on Monday.. now, Dow 5% off record high, but S & P 500 And technology is heavy Nasdaq It has decreased by 4%.

“This is a months-long fix in the broader market,” Dwyer said. “Given that it fell by nearly 2% yesterday, it’s not overbought or oversold at this point.”

Dwyer, long-term market bull I started pullback watch last spring When Market downgraded to neutral in AprilLists the enthusiastic exchanges across Washington’s fiscal cliff, Wednesday’s Federal Reserve Decision on Interest Rates When Debt crisis fallout from Chinese developer Evergrande As a reasonable short-term downside catalyst.

“These are good excuses for making a profit,” he said.

In Dwyer’s Tuesday research note to investors, he showed that the streets are likely to see a short-term reflex recovery. But he thinks the middle reading is more ominous.

“Since there has already been a sharp rebound from the daytime lows on Monday and the catalyst for the correction has not yet been resolved, a little more dyspepsia is expected once the bottoming process begins, and further weaknesses begin to add risk to the market. “Dwyer wrote.

He expects the scale of short-term withdrawals to be limited to a few percent.

As an additional drawback, Dwyer plans to buy Finance, industry, material When energy.. Currently, materials and energy are firmly in the correction area, more than 10% away from the 52-week high.

He argues that the well-being surrounding economic resumption trade is now largely over, and they will be key to a record market outbreak within a few months.

“It’s more important to see what the end-of-year opportunity is,” Dwyer said.

CNBC Christopher Hayes Contributed to this report.

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Stocks will break out of trouble and hit new record highs: Tony Dwyer

Source link Stocks will break out of trouble and hit new record highs: Tony Dwyer

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