If you missed the market rebound, here are two ways to play for a catch-up

The markets have roared back from the December lows, with the S&P 500 up more than 13 percent. If you missed the rally, two experts say there's still time to get in.

"I think you're going to see incremental participation underneath the surface," Ari Wald, head of technical analysis at Oppenheimer, said Monday on CNBC's "Trading Nation." "I think more and more stocks are going to slowly participate as the markets rotate their way higher as conditions improve."

Wald noted that for investors looking to take advantage of the market recovery, stocks in the energy space are beginning to look attractive.

"I'd call out the trend improvement that we're seeing in a lot of the midstream oil and gas companies," he said. "We're seeing participation really start to grow out in names like Oneok and Kinder Morgan."

Shares of Kinder Morgan are up more than 19 percent so far this year. Wald's charting reveals that while the stock has yet to break through its key resistance around $18.50, the rotation higher in its 200-day moving average suggests it has "pre-breakout potential."

"On top of it all the stock offers 4.3 percent dividend yield to boot so a pretty nice set up here for Kinder Morgan," he said.

Gina Sanchez, CEO of Chantico Global, believes the defensive nature in the rally of late could be setting the stage for more gains in value stocks over growth.

"Valuation actually matters and so we would actually be looking at sort of the cheaper, less highly valued segments of the market," she said Monday on "Trading Nation."

Sanchez noted that infrastructure prioritization out of the Trump administration could be a potential boon for the Industrials space.

"I don't think it's going to come around a wall, but there are other elements of infrastructure that we could actually see Washington come down on which would be very beneficial to many of the names in the S&P industrials sector," she said. Industrials are now the second best-performing sector this year, up more than 13 percent.

"So XLI is actually a pretty good way to play this and it's not as highly valued as the high-flying technology area or other areas," she said.

The industrials ETF (XLI) has bounced 22 percent from its Boxing Day, or Dec. 26, intraday lows. It trades at 15 times forward earnings, a cheaper valuation than the 16 times multiple on the S&P 500.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

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 CNBCand 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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