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3 bulletproof stocks to protect your portfolio: Technician

Bulletproof stocks to protect your portfolio

Stocks pulled back on Monday in yet another volatile session as fears over a Greek exit from the euro and Chinese slowdown weighed on the markets. With losses accelerating on Tuesday, the S&P 500 index has now turned negative for the year. But even amid the increased volatility of late, there are still names to own that can help protect your portfolio, according to Cornerstone Macro head of technical analysis Carter Worth.

"In a very up-and-down kind of environment, often favoring relative strength makes a lot of sense," Worth said on CNBC's "Fast Money."

Worth identified the health-care, consumer discretionary and financials sectors as three areas that have shown relative strength in the past few months. He went on to name one stock in each sector that has outperformed and that is setting up technically for more gains.

In the consumer discretionary space, Worth called flooring company Mohawk Industries a favorite pick. The stock broke out late last year, he said, and could be setting up for another move higher based on the charts. Mohawk Industries is up more than 23 percent so far this year.

In the health-care space, Worth said to take a look at Botox maker Allergan, which has also had a big run this year, up nearly 20 percent. "What I kind of like is this stall," he said, pointing to a pause in the stock over the past four months. "The presumption is this, too, gets resolved to the upside."

Lastly, Worth said Morgan Stanley could be setting up for an 8 percent to 10 percent move higher. Worth identified two trend lines on the chart, and said it appears the stock is "going to approach the top of the uptrend."

When asked his view on stocks as a whole, Worth said he was troubled by the fact that U.S. markets are essentially unchanged over the past seven months. "The bear view would be it's the stall before the storm. The bull argues it's the pause that refreshes," he said. "We're in the former camp."