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Nasdaq seesaws after sell-off, two market watchers break down what the move means

Kat Facchini
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Trading Nation: The Nasdaq slides — Here are the tech names to watch

The Nasdaq is in flux after its dayslong decline.

The tech-heavy index has fallen 1% this week as higher rates spooked growth investors. The concentrated Nasdaq 100, which holds heavyweights including Apple and Microsoft, has dropped more than 6% in the past month.

Mark Newton, founder of Newton Advisors, told CNBC's "Trading Nation" that the decline does not represent the big market picture.

"The broader market is actually doing fine," he said Wednesday. "Breadth is positive, but technology being such a huge weight on the indices is taking the market lower."

The more diversified S&P 500 is positive for the week, while the Dow Jones Industrial Average is up more than 1%.

Quint Tatro, founder and CIO of Joule Financial, sees a chance to jump into stocks that had run hot over the past year.

"This is the opportunity to go in and be nibbling at your favorite names," he said during the same interview. "We're taking positions in names like Facebook, where valuation is attractive."

Facebook has been a rare bright spot for the Nasdaq 100, adding 1% this week. However, it is down 3% for the year.

Tatro also noted that he would be watching chipmaker stocks, highlighting the SMH semiconductor ETF, as a chip shortage has squeezed the group over the past month.

"Tech's not going to just completely fall apart. There's going to be fits and starts along the way, but we will continue to see this rotation and movement in other areas, but I think there's some value here to be found," Tatro said.

Disclosure: Tatro and Joule hold FB.

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