The has now recovered all of its August losses. But for those who sat on the sidelines and missed the rally, one highly regarded technician says there are three stocks near 52-week lows that are about to join the party.
"When you see the averages here at a 15-year high on the Nasdaq 100, the S&P 500 back through 2,100, you're worried about chasing stocks," Rich Ross of Evercore ISI said Monday on CNBC's "Fast Money." But according to Ross' chart work, there are three bargain-basement stocks: Party City, FireEye and Nordstrom.
"You just had the super bowl for Party City, we're talking about Halloween," said Ross. Party City went public in April, and since then the shares have fallen 23 percent. It recently missed earnings. The stock is trading near all-time lows, but Ross said the $15 is a key technical level where the stock has found support. If it can hold there, he thinks it could break above its 50-day moving average. According to Ross, the stock is a good buy ahead of its earnings report, which is scheduled for Nov. 12.
Ross also sees opportunity in the charts of cybersecurity stock FireEye. The name is down 8 percent this year, and has fallen 31 percent since June. According to Ross' chart work, the stock has been down on its luck after breaking a critical support level of $27.67 three times, something technicians call a triple bottom. Ross views this as a bullish pattern, and as such said now is the time to buy a tech stock in a high-growth sector for a decent price.
Last on Ross' list is Nordstrom. "This is the one that I like the best of the three," he said. This year hasn't been a good year for apparel, and Nordstrom's chart reflects that move; shares down nearly 10 percent year to date. According to Ross' chart work, the blue chip retailer is touching its 200-week moving average, for the first time in five years. If it can hold, Ross says a sizable bounce could soon be in store. He says if you're investing for the long term now is the time to buy the stock on this pullback.
"These are the three names to buy on the cheap, in a market that's had a very big move," said Ross.