Global markets have been steady heading into Friday's jobs report. But almost as important as positive macro data, according to Art Hogan, chief market strategist at Wunderlich Securities, may be the conversation surrounding it.
"The narrative shifts from 'the slowing global economy has to drag us into a recession' to 'we're probably in the same kind of economy, but not going into a recession,'" Hogan told CNBC's "Worldwide Exchange" Thursday.
China has been driving the slowing-global-economy story so far this year. But Hogan said the perceptions surrounding the world's second-largest economy are improving, too.
"If they stay steady at the tiller in the currency moves that they're doing, versus what we saw last August and certainly at the turn of the calendar, that helps a whole lot," Hogan said. "That shock factor that's not in the market right now."
Despite relatively positive economic data out of the U.S. this year, market volatility remains high. The is down 2.8 percent year to date, as of Wednesday's close, with more 1 percent moves in three months than most years on average.
Hogan said to expect more volatility, and some stretched valuations as a result. "One thing we've seen in the volatile market is a sponsorship of the dividend darlings," he added, mentioning the utilities sector in particular. "You have to be very careful there."
Instead, he's recommending telecoms with lower multiples.
A rocky start to the year may have also carved opportunities in technology stocks. "Tech got caught up in the momentum meltdown," Hogan said. "I think you could start getting back into technology if you do that carefully."
For now, he's looking to strength in financials and strong data from this week for any calm in the markets.
"If we can get some support in the financials, if we keep a close eye on the transports which are telling us a pretty strong story here, and the economic data stream continues to improve modestly, I think this market can perhaps settle down into the summertime," Hogan said.