The action right now is fine, but the concern is that the market seems to be stuck in this trading range. But we think it's fine to invest if you're looking at the long term. Summer is always a hard time . All the fund managers are on vacation, and volume is very light.

But I wouldn't be in a rush to buy these stocks right now. Maybe buy a little bit. Keep your powder dry, and wait a couple of months, see what happens. I'm very worried about May. What is going to happen in the summer doldrums? Perhaps the market will correct again. You've got to be very careful here. So remember, buy stocks with earnings -- that's my opinion.

[Sears' second pick is Ericsson for a value play.] The stock is incredibly oversold in our opinion. The new managements is going to do a pretty good job we think and when telecom comes back that's where you want to be, ... Ericsson is certainly at least a one-year hold-though. Were not expecting any miracle soon.

Stocks are still overvalued,

I'm looking for bearish sentiment to warrant a brief rally,

The run's still intact. Any pullback is temporary, ... Even if we lose a couple of hundred points, you're going to see people jump in and push it back up. There are plenty of people in cash.