Part 2

What The Heck Are Washed-Out Stocks? And How Are They Different From Oversold? 

As the painful drawdown from the first quarter of 2025 continued, FS Insight Head of Research Tom Lee began writing about the potential opportunities of stocks that he described as “washed out” or “sold out.” This has led many to ask what it means for a stock to be washed out.

It's worth noting that Lee is not the one who coined these phrases. He credits noted technical analyst Walter Deemer for that.

A washed-out or sold-out stock is a stock that has gone beyond oversold, to the ...

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FS Insight Decoded
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