Sell stocks—they’re tremendously vulnerable: Investor

The S&P 500 closed out its best week of the year Friday, rising 3.27 percent. However, one investor is still very wary of the remarkable gains.

Chad Morganlander, portfolio manager at Stifel Nicolaus' Washington Crossing Advisors, recently went underweight the S&P, given the slowdown in corporate earnings and revenue.

"We believe that earnings growth is going to be lackluster in 2016 ... that's on the back of lackluster revenue growth," Morganlander said Friday on CNBC's "Power Lunch."

With 95 percent of companies having reported earnings, profits have fallen almost 2 percent in the third quarter and are expected to decline again in the fourth quarter, according to FactSet. Reported revenue has also dropped for three consecutive quarters, and is expected to fall in the fourth quarter as well.

Read MoreQ3 earnings look the most dismal since financial crisis

Meanwhile, Morganlander expects global growth to continue to slow, and for problems to persist into 2016.

"As global growth decelerates, it provides a tremendous amount of vulnerability for investors. So this technical bounce here should be sold," he said.

However, technician Craig Johnson of Piper Jaffray said the S&P just had a very important technical week, and he remains bullish on equities.

"We came right back down to the zone of 2,020, 2,040, found good support and have rallied off of it. I think we're setting ourselves up for a strong move into year-end," Johnson said. "We think it's going to continue on into 2016."

Johnson reiterated his 2,135 year-end target on the S&P 500, which would be a 2 percent increase from where stocks closed Friday.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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