Stocks are rallying on the first day of trading in December, putting the Dow back in positive territory for the year. CastleArk Management President and CIO Jerry Castellini tells CNBC's"Power Lunch" on Tuesday, he expects 2016 to be a better market year.
"The need to sell off here, that doesn't seem to be the case. I have a feeling people will stay invested, put more money to work if the [November] jobs report is good," Castellini said.
He also expects sectors that are performing poorly this year to break out next year. "lndustrials, financials, energy will do better next year, as will IT tech. Tech will be one of the few groups that will stay a leader," Castellini said.
He is avoiding defensive sectors, big consumer non-durables, big drug companies and food stocks. "The cost of taking risk is as low as it's been in an extraordinarily long period of time," Castellini said.
Industrials, financials, energy and IT Services are higher during trading.