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Fed puts bite back in FANG stocks: Top technician

Last week, the Federal Reserve's decision not to raise rates caused equities to sell off sharply. Yet according to one widely followed technician, it may have put the bite back into one group of stocks.

Carter Worth of Cornerstone Macro told CNBC's "Fast Money" that investors should stick with Jim Cramer's so-called FANG stocks—Facebook, Amazon, Netflix and Google—high-growth names that investors have been bidding up this year. Google shares have surged about 20 percent in 2015, the bulk of which came during a particularly torrid late-summer run.

"This was a day for perspective change. There was no change. That's the definition of status quo, which means you stick with what you've been doing," said Worth. Rather than rushing for the exits, he said the Fed's decision just gave investors time to stick with one winning theme this year: Favor growth over value.

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According to Worth, investors should place their bets on two winning trades: the S&P 500 consumer discretionary and the S&P 500 Internet retail industry groups. Consumer discretionary is the top-performing group of the 10 S&P 500 sectors, and is up 5 percent on the year. The Internet retail industry index is the best performer of the 138 groups in the S&P 500, further proving high-flying stocks are back in play, even during such volatile times.

"If it's Fed on hold, you want to stick with this as a premise," said Worth.

According to his chart work, the Russell 3000 growth began outpacing the Russell 3000 value in September 2012, around the time the Fed announced its third round of quantitative easing, a period when the bank bought mortgage-backed securities and Treasurys to curb the economy's downward slide. The tremendous outperformance in growth stocks suggest they are the best place to hide out, the analyst said.

"It's the industry leading all others in the S&P 500," said Worth, referring to the S&P 500 Internet retail index. The group is comprised of stocks like Netflix, Priceline and Amazon—all considered high-growth names—have seen a well-defined uptrend.

According to Worth's data, the group saw a move higher, then a pullback, followed by another uptick. The historic pattern suggests these stocks could continue to head higher.

Amazon holds the biggest weighting in the S&P 500 Internet retail index, and Worth said Amazon looks attractive from a technical perspective. Additionally, the tech titan will take out its July highs around its second-quarter earnings report. Worth said he "expects a 7-8 percent move from here."

"These stocks held out so much better than the market did in the swoon of Aug. 19 through Aug. 25. Why would we expect them to do worse," Worth asked.

"The world is starved for growth ... you don't want to dig in the trash and find a beaten-up industrial ... that's exactly what doesn't work," he added.