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The Chartman

Plenty of Surprises in Store as Markets Eye Record Highs

The media seems torn between “the market needs a pullback” and “get on board.” Both sides have valid points, but I lean more to the bull camp. In fact, the market WAS overbought until this week, when some of the exuberance got worked off. Now it looks like there’s a good shot for further gains.

One stock definitely not overbought is Raytheon (RTN). Judging by the price action, one would think the military is closing down permanently. But, markets and stocks overreact, and I’d be a buyer rather than seller of the stock. (NOTE: I own RTN.)

Another stock that’s taken a blow to the head is Apple (AAPL). I guess the love is gone, but I’m a buyer at these levels. My pain tolerance may be different than yours, however, so a safer entry might be to wait for a sign of strength. That would be a breakout of the current downtrend, and you can go long there.

The market is always interesting, but never so more than now, when politics and business are in the mix everyday. One thing’s for certain: there will be plenty of surprises the next few months.

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."