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Tech's turbulence could be a 'really good buying opportunity' for these rate-resistant groups, trader says

Tech stocks fall as yields rise — Two ways to trade the action
Tech stocks fall as yields rise — Two ways to trade the action

It may be time to take advantage of the dips in technology stocks, one trader says.

Tech names got some reprieve in Wednesday's trading from a sharp sell-off Tuesday fueled by rising Treasury yields, but investors may want to use pullbacks to buy into some parts of the sector, Tocqueville Asset Management portfolio manager John Petrides told CNBC's "Trading Nation" on Tuesday.

"With interest rates rising, the whole trade has rotated out of growth and into value," Petrides said. "Tech valuations may have been stretched and now you're seeing that come down to reality."

"But to be honest with you, there's a lot of fundamental and very strong themes to play within the growth sector where if you've done your shopping list and you've done your homework, [days like Tuesday] could be a really good buying opportunity."

He specifically had his eye on cloud computing, cybersecurity, fintech and 5G-related stocks.

"There's a lot of demand for these industries that have long-term drivers," Petrides said. "We'd be buyers."

Another trader issued a warning on tech plays.

"Tech does not do well when you see this kind of competition for capital," Chantico Global founder and CEO Gina Sanchez said in the same interview.

With the Federal Reserve possibly planning to wind down some stimulus by the end of the year, "you're looking for growth, you're looking for cash, you're looking for dividends," said Sanchez, also chief market strategist at Lido Advisors.

"While tech gives you growth, right now, it's not giving you much in the way of cash. It's not giving you much in the way of dividends," she said. "And with all of the turmoil that's happening with regard to the debt ceiling, it makes it even harder to justify owning tech at this time."