Stocks opened slightly higher Monday following a big beating last week that left the Nasdaq (IXIC) down 3.1%, its biggest weekly percentage decline in almost two years. The Dow (^DJI) slipped 2.4% last week.

The major averages could fall even further says David Nelson, chief strategist at Belpointe Capital.

Related: 3 reasons why this pullback could get much more severe

Nelson tells The Daily Ticker he's still bullish on stocks but has rotated out of some names such as Google (GOOG), based on chart indications.

"I don't think the market is in a bubble but some names clearly are," says Nelson. He describes Amazon (AMZN)  and Netflix (NFLX) as ""ridiculously expensive."

Related: Are social media stocks in a bear market?

Nelson admits the carnage that started with those names and other so-called momentum stocks like Facebook (FB), Tesla (TSLA), Twitter (TWTR) has "bled over." Case in point: Gilead (GILD), a biotech stock that got "pummeled" but looks cheap based on a P/E using next year's earnings, which is in the low teens, says Nelson.

He attributes last week's rout not only to a rotation out of momentum stocks but also selling by big hedge funds.

"I gotta believe a lot of this selling is coming from them," says Nelson. "If you wanted to make money in the last couple of weeks you sold what was up and bought what was down. You turned your model upside and you probably outperformed."

Related: This is not the start of a bear market: Citigroup's Levkovich

Looking ahead he expects, "The bears are going to put on a few more points."

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