One of Wall Street's veteran market gurus, Seth Glickenhaus, thinks the selling in the market isn't over. "There's still some room on the downside, with more bad innings possible--but we're nearing bottom," he says. So what's Glickenhaus' strategy?

"We're buying heavily, but selectively--some of the ones we have always liked and some new names that have become attractively priced," he says. Glickenhaus runs a New York investment firm bearing his name, which manages more than $5.5 billion. Among the stocks Glickenhaus thinks have become compelling buys: Merrill Lynch (MER), which dove 7 1/2, to 66, on Aug. 31--way off its high of 107 on July 13; Chrysler (C), which skidded 4 15/16, to 45 1/4, down from 61 on July 24; and homebuilder Lennar (LEN), which fell 5 7/8, to 18 1/8--a far cry from its of 36 3/16 on Apr. 20.

Glickenhaus notes that for people betting on the market, Merrill is the play. It has a large in-house mutual-fund operation, with $448 billion in assets under management. The stock rose to 67 13/16 by Sept. 2.

As for Chrysler, "it's a win-win situation" because of its merger with Daimler-Benz, he says. Glickenhaus figures that if the deal flies, investors will own 47% of a more robust Daimler-Chrysler. If the deal collapses, Chrysler would still be worth more than its current price, says Glickenhaus. The stock inched up to 49 11/16 on Sept. 2.

Lennar, says Glickenhaus, is benefiting from the surge in homebuilding. On Sept 2, the stock rose to 19 1/4.

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