These folks are the leader in their industry, and they have tremendous market share and they're growing their business overseas as well,

[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.

We're very bearish, ... We think there will be rallies, but they will be short-lived.