Tags: Kee | stocks | buy | sell

Stock Traders Daily’s Kee: Sell Stocks Now, Buy Later

By    |   Friday, 06 July 2012 11:25 AM

Stocks are headed down another 20 percent or so, and that will provide an excellent buying opportunity, says market guru Thomas Kee, CEO of Stock Traders Daily.

The market is in a downswing that began in 2007 and will last until 2023, he says.

“So this would be when you want to sell, so that you can buy back again when everything looks ugly,” Kee tells Yahoo. “There's an absolute opportunity for people that are proactive and are willing to do the work."

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

Investors might even consider establishing short stock positions, he says. “That looks very attractive to me until such time as we get that capitulation again, which we all know is coming."

Government inaction on the “fiscal cliff” of spending cuts and tax increases slated to start next year could accelerate the process, Kee says.

He recommends piggybacking the Standard & Poor 500 Index’ drop to 1,100, or 19 percent beneath recent levels. “Then consider buying back again and riding that roller coaster, that trading range, back to the highs," Kee says.

Some experts have turned more bearish toward stocks after disappointing employment data Friday. Non-farm payrolls rose only 80,000 in June.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

“It’s a mildly disappointing report,” Mark Luschini, chief investment strategist for Janney Montgomery Scott tells Bloomberg.

“It’s hard for investors to get overly enthused about it, unless in this bizarre world you believe this number gives the Fed more impetus to step up with QE3.”

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