The major averages are selling off sharply after a weaker-than-expected July jobs report.

MarketGauge.com's chief strategist Michele Schneider provides insight into the market's strong negative reaction to the report. Schneider thinks the market reaction is surprising given that a jobs report like this "was a matter of not if, but when" that we are starting to "see sort of cracks under the surface in terms of certain economic data." She explains that the downturn is more of a herd reaction to the reality that the Federal Reserve may be too late to cutting rates. Schneider adds "here's that stagflation that we've kind of been talking about which is, I think, bottom line right now."

With stocks selling off, Schneider advises looking at for buying opportunities in names like Amazon (AMZN) and Apple (AAPL). Continuing, Schneider remains optimistic about Tesla (TSLA) and EV stocks like Rivian (RIVN), as well as bitcoin (BTC-USD), advising investors to "pick your areas carefully."

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This post was written by John Lesinski.