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Hide out in this tech play while Apple, chip stocks fall on coronavirus weakness: Trader

Key level for Apple after iPhone maker's coronavirus warning

Apple's sales troubles could put a bid in for Salesforce.

That's according to Mark Tepper, president and CEO of Strategic Wealth Partners, who told investors to consider buying Salesforce as shares of Apple and semiconductor companies fell after the iPhone maker warned that weakness tied to the coronavirus would weigh on its quarterly revenue.

Calling Salesforce "one of my favorite software plays and one of my favorite tech plays this year," Tepper cast the cloud computing stock as a good place to hide out amid the declines.

"We definitely like software over hardware and semis," he said on CNBC's "Trading Nation" on Tuesday. "You're looking at a company that just continues to generate recurring revenues. They've got a very sticky customer base because it costs so much money to really get Salesforce off the ground [that] it's very expensive for customers to shift."

Salesforce stock is up 17% this year, but Tepper said he has liked the company for a long time, especially compared with shares of companies like Cirrus Logic, which has some 80% exposure to Apple's business, or Skyworks Solutions and Qorvo, which each have roughly 40% Apple exposure.

"I'd be watching my exposure to any of these chip names that have a lot of exposure to Apple," Cirrus, Skyworks and Qorvo being the top three, Tepper said.

Also on "Trading Nation," Bill Baruch, founder and president of Blue Line Capital and Blue Line Futures, gave a slightly more constructive outlook for Apple.

"Be patient," he said, adding that Apple's stock hit his previous "upside target" of $324 not long ago, which represents a 200% retracement from its collapse at the end of 2018. A retracement occurs when a stock reverses a long-term trend and is often used by technical analysts to flag key levels when that stock's course could change.

Given that retracement, "there's definitely some resistance here we're struggling against regardless of the China news and regardless if there's new writedowns or new guidance to be moved lower," Baruch said.

"Ultimately, looking at the Apple chart, there's a lot of support down here at [$]300," he said. "You've got a nice little trend line coming in just above $300. You've got the 50-day moving average trailing that. That's where you want to be looking to be a buyer in Apple."

Apple's stock fell nearly 2% on Tuesday to $319 a share.

Baruch was also watching for the near-term bottom in the iShares PHLX Semiconductor ETF (SOXX).

"You've got a trend line coming in there just below 250 and then you've got the 50-day moving average right above that," he said. "That's where you want to be a buyer in there. So, pick your spots."

SOXX fell more than 1% in Tuesday's session.

Disclosure: Strategic Wealth Partners and Tepper own shares of Salesforce and Apple.