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Why This Portfolio Manager Is Looking for Opportunities Amid Monday's Plunge

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The market selloff continues on Monday, Jan. 24, with the Dow Jones Industrial Average plunging over 1,000 points as of midday trading and the Nasdaq Composite down over 4% amid continued weakness in technology stocks. 

The marked its lowest level in seven months and the S&P 500 and the Nasdaq Composite remained in correction territory as headline risks including an upcoming rates decision from the Federal Reserve and increasing geopolitical tensions between Washington and Russia dominated the minds of investors, TheStreet's Martin Baccardax reported. 

During an interview with TheStreet's Katherine Ross before selling accelerated, Chris Versace, co-portfolio manager of Action Alerts Plus, said the investing club is looking for entry points amid Monday's selling. 

"We want to take advantage of the sharp pullback in what we're calling quality companies," Versace said, citing the example of Costco  (COST) - Get Costco Wholesale Corporation Report, a holding in the AAP portfolio. 

"The market is simply oversold, and as we're staring at the market today, increasingly oversold Versace said. 

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"All in all, the early morning happenings will, at least at the market open, push equities lower, adding to their deeply oversold condition. Our suggestion to members is to view the current market environment not as a painful one, but rather one that is allowing for a fresh bite at quality companies at far better share prices than we’ve seen in some time," Versace wrote in his morning AAP comments. 

Watch Versace and Bob Lang discuss the market selloff and what they're only telling members in their morning Daily Rundown video. 

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