Tech Strategist Opens His Shopping List For Market Sell-Off

Sean Udall was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Quantum Trading Strategies Chief Investment Officer Sean Udall was recently a guest on Benzinga's #PreMarket Prep, where he said that the equity markets have been in a "stealth bear market" since March. Udall pointed to the fact that 72 percent of stocks were trading under their 50-day moving average, while between 50 and 60 percent of stocks are below the 200-day moving average.

On Udall's list are Cyberark Software Ltd CYBR and Micron Technology, Inc. MU. Micron itself has more than halved since December highs above $36. Much of those losses came in the past month, when the price has declined 32 percent. Udall said that everyone liked Micron when it was at $30 and $35 and had momentum, yet, no one likes it under $20.

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CyberArk has come off more than 25 percent from its 52-week highs that it saw just last month. That's when the stock hit $76.35. On Wednesday, the stock closed at $56.98. Udall said he bought more this week.

But Udall also pointed investors to look at other, "smaller companies" that have fallen more as high-beta names sold off. Specifically, Udall said that New Relic Inc NEWR, a software analytics company, and Hortonworks Inc HDP, a data analytics company.

"A lot of times when the market is getting hit, other stocks will get hit two or three times the amount that the market gets hit," Udall said.

In general, Udall argued that if you "know it's a really good company, that it has a really good balance sheet, and you think the earnings profile is good long-term," you can find a lot of stocks at a discount.