Birinyi says Don`t Buy Stocks at these Levels

Monday, October 12, 2009

Buying stocks here is like crossing Fifth Avenue when the light is red,” Birinyi says. “You might make it, but the odds are not with you.”

“It’s time for a pullback,” Birinyi tells Bloomberg TV. “By almost every measure of an overbought market, it has done a remarkable job of trading through those measures.”

As a result, he says, “We’re looking for some consolidation. It can be a consolidation of time where the market just treads water for some time.”

“I would guess — and it’s only a guess — there will probably be a 5 to 10 percent pullback,” he says. “But again it could be a pullback in time, where we do nothing for a while and digest these gains.”

Lazlo Birinyi added, “I think the market has made a bottom. But in the markets of today where you have so much volatility, you have to be more sensitive to timing.”

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