A massive selloff is underway on Wall Street after a disappointing jobs report last week stoked investors' fears of a recession. Academy Securities head of macro strategy Peter Tchir joins Morning Brief to discuss the movement and how investors can best position their portfolios in the case of a recession.

Tchir says that today's selloff "is playing out a lot quicker" than he anticipated. He encourages investors to remain cautious, explaining, "There's a lot more selling pressure to come. When I look at things to me that are indicating that we've had what we call de-risking, people taking risk off the table, I'm not seeing it. You're still getting flows into things like TQQ (TQQQ), NVDL (NVDL), which is a leveraged Nvidia (NVDA) ETF. So I think there's more selling pressure to come."

He notes that if the market breaks below its 200-day moving averages, "that's where it does get dangerous." He adds, "My fear is that we'll bounce off that 200-day moving average of support a little bit. But if we break it, you know, not to say all hell breaks loose, but yes, I think it could get ugly pretty quickly." As investors prepare for a recession, Tchir encourages them to start taking profits in areas like investment-grade bonds: "Free up that cash so you can put it to work in equities if and when the time is right." He is bullish on the energy sector, pointing to XLE (XLE) and oil (CL=F, BZ=F) as investment opportunities that could get a boost in the case of a major geopolitical event.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl