During market corrections, Ritholtz Wealth Management's Josh Brown likes to place limit orders to buy stocks, or catch falling knives, at specific levels below where the stocks are trading.
His bear market approach played out at the end of last week, when he picked up shares of Meta Platforms Inc (NASDAQ:FB) near the lows. He is already realizing profits on that trade.
"I got it probably around $190 and change and I got out this morning with almost 20 points," Brown said Tuesday on CNBC's "Fast Money Halftime Report."
Although he referred to Meta as a "dirt cheap stock" based on fundamentals, the market isn't focused on fundamentals right now, he said: "So I didn't really feel compelled to want to keep it."
Related Link: Josh Brown Buys Meta Platforms And This Stock Down More Than 30% YTD
Instead, he plans to continue to roll out his limit order strategy on other stocks. There are several names that are getting close to where he wants to buy them, Brown said.
He told CNBC that he is looking at Netflix Inc (NASDAQ:NFLX), The Walt Disney Co (NYSE:DIS), Lululemon Athletica Inc (NASDAQ:LULU) and Moderna Inc (NASDAQ:MRNA).
"Not all of those will be long-term forever positions," Brown said. "Some of them will just end up being trades and Meta was one of them."
FB Price Action: Meta shares were down 2.63% at $205.48 at time of publication.
Photo: mkhmarketing from Flickr
