This week's stunning 13 percent decline in shares of Gopro supplier Ambarella offered up a strong reminder of the potential profits and pitfalls of investing in high-growth stocks. Although some might think Ambarella's decline is rare, according to one top technician there are two other stocks look eerily familiar.
Ross noted that much like Ambarella, Skyworks has risen nearly 400 percent in the past two years. When the wireless chip supplier's stock last experienced such a huge run in 2011, it quickly lost a bulk of its gains and fell 65 percent.
Ross points to a "bearish technical symmetry" when comparing what the stock is doing now to the last time. Accordingly, he expects at least a 30 percent drop from its current levels. For now, the stock trades above $106 and earned a "buy" rating this week from Mizuho Securities, which has a price target of $115.
Even more concerning to Ross has been the meteoric rise of biotech firm Biocryst Pharma. Shares have risen more than 100 percent in just the last two months. But rather than take the run as a sign to get in, Ross sees a bearish formation and thinks the stock could see an immediate decline of 20 percent.
Despite the calls for these two stocks to sink, Ross said that is apart from the strength of the overall market.
"We're in a bull market so on the short side you want to pick your spots and keep your stops close by," he said.