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‘Save Some Dry Powder’: Josh Brown

Watch underperforming sectors for bargains, Josh Brown of Fusion Analytics said Tuesday.

"It feels like we're in the midst of a correction. This could be a 3 percent or a 10 percent. I couldn't tell you," he said. "What I can l say is: Seasonally it makes a lot of sense. The last three years in a row, we ran into April earnings season with a full head of steam, and we were pretty disappointed."

On CNBC's "Fast Money," Brown noted that economic data had been "universally to the downside this entire month."

Brown also suggested being ready to buy select dips.

"Keep your favorite names, the ones that are acting the best, save some dry powder," he said. "Odds are you're going to have some really good opportunities in some sectors that have underperformed for a long time."

Brown said that he would be looking to buy in the underperforming technology sector.

"But I'm not quite ready just yet to say we've seen the whole run of what this correction's going to be," he added.

Joe Terranova of Virtus Investment Partners saw a bounce in stocks as "sell" signal.

"Coming in 100 percent net long exposure on Friday, I hedged that out through mini S&P futures down to 70 percent. Yesterday, covered it," he said. "Right around here in the middle of the day today, I am using the strength that we are seeing as an opportunity to reduce actual equity holdings and bring that exposure back down to 70 percent.

"I think we've got a strong day, a positive-trend type of day, but the upside here in the S&P, I think, is limited to another four or five handles."

Trader disclosure: On April 16, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long XBI; Josh Brown is long JNJ; Josh Brown is long AAPL; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLU; Mike Murphy is long AAPL; Mike Murphy is long IP; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long IBM; Joe Terranova is long SPLK; Joe Terranova is long SWN; Steve Weiss is long C; Steve Weiss is long BAC; Steve Weiss is short BHP.

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