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As the markets continue to climb to new highs, a handful of stocks have surged more than 30 percent off their 200-day moving average — but the extreme conditions shouldn't deter investors from piling in, according to one trader.

"The implication that a stock is trading that far above its 200 day is certainly that there's been a character change, that there's been some kind of an inflection point off of what's been a sectorwide or systemic risk in that entire investment circle," Tim Seymour told CNBC's "Trading Nation" on Monday.

Semiconductor makers Nvidia and Applied Materials have surged a respective 65 and 34 percent above their long-term moving average. Meanwhile energy companies like Oneok and Southwestern Energy are trading nearly 40 percent above their 200-day moving average. And gold miner Newmont Mining is 60 percent above its 200 day.

"If I was going to be investing in one of these overbought areas, I'm going to be looking at the miners," Seymour said.

Newmont Mining, which is one of the largest components of the gold miners ETF, has surged nearly 150 percent in 2016 while the gold miners ETF, the GDX, has rallied 125 percent, and gold has broken out to multiyear highs.

"Despite the fact that it's been such a strong performer with gold's resurgence, I look at the sector and see that its coming out of a three-year bear market," said the managing partner at Triogem Asset Management. "I think they have a lot of room to run," he added.