But parts of the tech space have now gotten so bad that they actually look good on an investment basis, Matt Maley, equity strategist and managing director at Miller Tabak, said Tuesday on CNBC's"Some of them look quite good here and really washed out, and I think there's a good chance that they'll bounce," he said.
"Here's a stock that, in the last couple of days, has tested its 200-week moving average. That line provided excellent support back in December and the stock ... [is] incredibly oversold," Maley said, citing the low levels on its momentum-focused relative strength index indicator. "I think it's going to bounce back quite strongly over the next few days, or even the next couple of weeks.", which recently tested a trend line from 2015 and also appeared to be oversold.
But, he said, "if they can get a good earnings report out, it should snap right back," a prediction that played out afterIf the breakout is meaningful, it will give Salesforce shares "another 10% [of] upside," Maley said. "So that one's a little bit more dicey ... but the other ones I think are so washed out that the rally that we'll see in these names will last them more than just a day or two.
"As we look at the big picture, the global growth perspective [is] that many of these growth stocks are going to underperform over the next three to six months. So, we would actually advise investors to look towards large-cap value at this point in the market cycle," he said in the same "Trading Nation" interview.
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