 Some of the hottest tech stocks are rebounding after a week of volatility here now is Chris Kaufman president at Parallax Research So Krista Fang stocks had multiple trading sessions to the downside. Is this rebound for real? Well, we have noticed extreme investor behavior on the Nasdaq on a monthly scale Which usually means you're going to be flat to down for a while in the markets So we're expecting that probably will be range bound for the next least few months Maybe even all the rest of the year. So what should we expect in the S&P 500 now? I mean we're in this sort of 2430 area. Should we be range bound there, too? I think we will I'm seeing in in the biggest cap stocks that we're the most overextended and In terms of our valuation model we Parallax we produce a lot of artificial intelligence models for our clients We have a valuation model where we look at the top thousand stocks by market cap We throw out the ADRs and we watch the median valuation of these stocks and We're about 20% overvalued huh and on the meat for the median stock Which is not to say that there aren't plenty of things to buy. There's still a bargains out there, but on a whole We expect the market to be You know have a limited upside Our own Doug Cass has an article on the street calm basically saying that it's time to panic and sell stocks He points to falling bond yields high valuations political uncertainty. Do you agree with that never panic? No, I don't think it's ever time to panic. There's always something to buy It's just you know when the market was the 0709 period. There were so many stocks you could buy We were like 50% undervalued the buy lists were big now the buy lists are small There's only there's fewer stocks that are bargains, but some of the smaller cap stocks are bargains still Japan Europe there's good buys when you say the market is limited upside what kind of downside scenario I mean we're gonna see a crash sometime this summer. I Don't think so. No, I think really the market's gonna tread water and wait for great earnings, you know and Hopefully the tax cuts will come in at some point and we'll get a boost in the economy and two stocks You think are undervalued or Oracle and Disney? Yeah, we just just because I was coming on the show I did a quick scan to see what looked like a bargain right now and Oracle Let's see. I wrote down the valuations here We've got we think Disney is worth about 153 an oracle worth about $59 right now And those are those are bargains compared to at least where they were a few days ago Are there sectors of the markets that that you like to go in when we see pullbacks? well I always look at the valuations the different sectors and right now tech is a bit overvalued probably more than the regular market Consumer discretionary staples are decent values there. There's some values in telecom You have to be very picky. You have to what I tell the managers who work with is go on a bargain hunt Work hard because it's hard to find bargains right now So there's always something to buy. All right, we'll be watching it all. Thanks for coming by. You're very welcome All right, I'm Scott Gamm and you're watching the street