Emerging markets just got wrecked, but technician says one country's stock market could rebound

Emerging markets are in the middle of a meltdown.

The EEM emerging markets ETF has plummeted more than 7 percent in the past eight sessions, putting it on track for its worst monthly performance in three years. The group came under more pressure after the International Monetary Fund warned the Sino-U.S. trade war could hit global growth.

One of the worst hit of the emerging markets could see the biggest rebound, says Matt Maley, equity strategist at Miller Tabak.

"If I was going to pick one area it would be China," Maley said on CNBC's "Trading Nation" on Wednesday. "It is down near its key support level, its 2018 lows, which is also its 2016 lows. The Chinese have been known to support their markets in the past. They know if it breaks below that level it could cause a watershed movement."

China's Shanghai Index bounced off the year's lows in mid-September, and now trades 3 percent above that level. It remains 24 percent from its 52-week high set in January, keeping it in a bear market.

Mark Tepper, CEO and president of Strategic Wealth Partners, is placing his bets with one the largest stocks on Chinese markets.

"I absolutely love Alibaba," Tepper said on "Trading Nation" on Wednesday. "Here you have a company that's growing faster than Amazon, trading at one-fourth the P/E."

Alibaba is expected to post 44 percent sales growth this fiscal year, better than the 32 percent increase forecast for Amazon. The Chinese e-commerce company trades at 21 times forward earnings, a fraction of Amazon's 74 times multiple.

"This is one of the best five- to 10-year plays in the stock market right now. Investors have an opportunity to own Amazon at 25 percent of the price," said Tepper.

As for the broader emerging markets, Maley remains cautious.

The EEM ETF has "been seeing a series of lower highs and lower lows for many months now, so it's going to be tougher for this thing to really bounce back, especially if we don't get a move in the dollar," said Maley.

The U.S. dollar index has gained nearly 4 percent in the year to date, while the EEM ETF is down 18 percent.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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