The major averages are on track for a third month of gains, something that has not happened with the Dow and in nearly two years.
Wunderlich Securities Chief Market Strategist Art Hogan tells CNBC's "Power Lunch" on Friday, the market favors the bulls right now because of two key factors. "China appears to be pursuing a strategy of relative CNH/CNY stability (i.e. very orderly and gradual weakening) and investor sentiment remains bearish and skeptical," Hogan said.
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In this environment, Hogan would unwind dividend trades and get into areas like tech, especially companies that focus on cybersecurity.
"Cyber-attacks are a problem for all companies. Certain types of network traffic will be diverted from the firewall to improve performance; however, this traffic still needs to be inspected," Hogan said.
Three security stocks Hogan likes right now are Fortinet, FireEye and Proofpoint. "Securing web traffic to stop advanced persistent threats/malware is critical to every company," Hogan said.
FireEye is higher during trading, but Fortinet and Proofpoint are down more than one percent.