Technology stocks have sunk around 10 percent in just one month. For investors burned by the trade, one top technician says the group is still safe to own.
Mark Newton, president of Newton Advisors, said he's not backing away from tech stocks, or some of the most popular names in the group.
"Technically, we've been able to recoup a lot of that damage that's been done over the last couple weeks. And so [tech sector ETF] XLK for me is still an area you want to be in near term. I'd look to buy any dips like we're seeing, thinking that into the midterms and throughout November and December we could see some further upward progress," he said Friday on CNBC's "Trading Nation."
Apple dragged down the tech space on Friday, posting its worst day in four years, a day after saying it would no longer give unit sales figures in future reports.
Apple is far from a sell at this juncture, said Michael Bapis, managing director with Vios Advisors at Rockefeller Capital Management. He said investors likely "panicked" around Apple's earnings report, and he would stick with the name in the long term.
"I would own Apple all day at 15 times next year's earnings, getting a dividend of 1.5 percent. I don't think you can find better than that. As far as where to hide, we're seeing a rotation out of a lot of the high-volatility, low-earnings, FANG-type of stocks. We're seeing the rotation move more into earnings-driven companies in the technology sector," he said.
Bapis added that he also sees opportunity in shares of Microsoft because of the company's cloud business.
Overall, the tech shakeout "is just a small little blip on the radar, and you're going to see tech outperform for the near future."
Apple shares closed nearly 7 percent lower on Friday, barely off session lows, at $207.48 per share. The XLK closed lower by 2 percent. They were down slightly in Monday's premarket.