With the market likely to retest the lows from last week, the right move now is to shift from stocks to all cash, said Matt Tuttle, chief investment officer of Tuttle Tactical Management..
His firm went to 100 percent cash Thursday.
"The momentum in the market is negative and with the little bit of the rally we had earlier in the week, all the markets we look at moved into overbought status. So to us it is the lowest probability time to be invested," Tuttle said in an interview with CNBC's "Power Lunch" on Friday.
That doesn't mean he thinks it's the end of the bull market, but simply a correction. He said once the market hits those lows, there will be a great opportunity to buy back in.
Tuttle's firm specializes in tactical ETF-based investment strategies. Therefore he's not necessarily looking for opportunities in specific stocks. He thinks there could be possibilities in small-cap ETFs and perhaps the S&P 500 and Nasdaq.