S&P to Hit 1500: Stock Picker

US stock markets rebounded Tuesday, with technology and financial stocks leading. And James Altucher, managing director at Formula Capital, told CNBC that the S&P 500 is headed toward 1500.

"[This year] we're probably going to see about $80 in S&P 500 earnings — back out the cash on the S&P 500, we're trading at about 11 times earnings," he said.

As the economy remains in "recovery mode," the stock market will be ruled by strong valuations and profits, he added.

"Valuations are at an all time high," he said. "There's a lot of slack in the economy still so those profits will continue to stay high even if economic growth is slow."

Altucher is bullish on International Paper and Georgia-Pacific, two paper-products companies which recently raised prices on containerboard — in turn, a shipping-industry indicator.

"They're seeing demand," he said. "They're raising prices — nobody does that if they're seeing decreased demand."

Altucher also likes mortgage insurers, tech and energy.

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Disclosure information was not available for James Altucher or his company.