Traders say to buy the Nasdaq—‘so bad, it’s good’

Trading Nation: Tech Drop
Trading Nation: Tech Drop   

Don't be emotional—be opportunistic. At least, that's the advice two traders give when it comes to the Nasdaq.

The tech-heavy composite fell 2.4 percent on Wednesday, its worst daily performance in nearly a year. But a glance at the charts tells Rich Ross of Evercore ISI that panicking now is simply not the smart strategy.

"I think today's pullback is simply a necessary pause within the context of an ongoing trend here," Ross said Wednesday on CNBC. "We see a lot of fear, but let's not get emotional out there. Today, with 96 out of 100 members of the Nasdaq 100 down, that tells me the selling has become indiscriminate."

With investors selling so aggressively, the action is "so bad it's good," Ross added.


Even if stocks continue to slide through the rest of the week, Ross wouldn't be discouraged.

"Over the next few sessions, if you we see any further weakness, you want to be a buyer here," the technician said, predicting that the Nasdaq 100 will be "5 to 7 percent higher by the middle of the summer. You have to buy the pullbacks in these strong uptrends."

From the fundamental angle, Cowen head of equity sales trading David Seaburg doles out a similar verdict.

"It's just a little pause here, it's no big deal," Seaburg said. "I think you should be buying the dips."