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How to trade the tech sell-off

LinkedIn headquarters in Mountain View, Calif.
David Paul Morris | Bloomberg | Getty Images

Disappointing guidance from a high-flying social network and a data analytics software company sparked a plunge in growth stocks as investors moved to avoid risk. So, what is the smart money thinking, and what should traders do now?

The tech and biotech sectors underperformed, with the Nasdaq composite falling 3.3 percent and the iShares Nasdaq Biotechnology ETF declining 3.2 percent Friday. However, it was worse for many specific Internet, cloud and semiconductor names, which were down multiples of the indexes.

CNBC Pro asked market experts, including a noted short seller from Citron Research, how investors should react to these difficult markets. They had plenty of advice.


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