Of the biggest movers off three-year lows, a few stocks still showed potential, according to a leading technical analyst.
Oppenheimer’s Carter Worth on Thursday called out Wyndham Resorts.
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“This is literally the No. 1 performing stock off the low three years out in the entire S&P,” he said on “Fast Money.”
But the stock chart appears to have run out of steam, closing at $43.75.
“We would fade it. Overdone. Take profits. Write calls against it. Do something,” he said.
The second biggest winner, Genworth Financial, saw a stock price up tenfold over the past three years.
“By all accounts this is a bearish-to-bullish reversal – a sick, laggard-type stock that is in the throes of bottoming out,” Worth said. “In this case we would stay long or get long.”
A more defensive stock, CBS, has returned to its May 2011 highs.
“We would play for $34, $35,” he said.
Worth also looked at the biggest loser, Dean Foods.
“Of all 500 stocks in the S&P over the last three years, this is one of two or three worst, down some 40 percent,” he said. “And actually, by my work, I think we’re out of the woods.”
Worth pointed out a trough pattern in the chart and noted an earnings beat in its latest quarterly report.
“We would give this the benefit of the doubt on the long side,” he said.
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Trader disclosure: On March 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns Citigroup; Adami owns (GS); Adami owns (INTC); Adami owns (AGU); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Kelly is long (TLT); Kelly is long (SMH); Kelly is long (IWM); Kelly is long (USG); Kelly is long (EWY); Kelly is short (EWY); Kelly is short (EWA); Kelly is short (EWH); Seymour is long (AAPL); Seymour is long (BAC); Seymour is long (INTC); Seymour is long (CSCO); Seymour is long (SBUX); Seymour is long (FCX); Nations is long (BAC); Nations is long (DE); Nations is long Citigroup; Black’s fund owns (TEVA); Black’s fund owns (MYL); Black’s fund owns (MCK); Black’s fund owns (AGU); Black’s fund owns (DE); Black’s fund owns (POT);
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