24 Breakout Stocks: Flying in the Face of the Hindenburg Omen

Ken Shreve, who focuses on aggressive growth stocks and is manager of TheStreet's Market Movers model portfolio, said he personally thinks the Hindenburg Omen is just noise. This year was the first time Shreve had heard of the indicator in his 20 years as a technical analyst. "I know there may be some statistical relevance to the indicator, but the one thing I learned about the Hindenburg Omen is that even though it does have a track record of almost predicting market declines, there's no way to tell when the market decline is actually going to occur and it's also impossible to tell how long it's going to last."

Shreve noted that despite all the talk of Hindenburg Omens last week, the market was up more than 5.6% between Wednesday and Friday. For him, the most important market indicators are the good, old-fashioned supply and demand and price and volume trends on the Dow, S&P 500 and NASDAQ. He already sees a number of compelling charts that look like they're ready to take off and "stage upside moves from consolidation areas."

"The reason I'm positive on the market right now is I'm seeing subtle signs that new money is starting to come in from the sidelines. These rallies don't seem to be short-covering anymore. I happen to believe that between now and the end of the year we're going see a nice little rally."

Schaeffer's Investment Research's technical strategist Ryan Detrick, for his part, said investors should pay attention to the Hindenburg Omen -- but that it's no reason for them to go out and sell all of their stocks. "Yes, it nailed the recent financial crisis -- but you can find numerous other times over the few decades that it simply didn't work," he said. "The best thing to remember is that in this type of environment, stay diversified. Own some bonds, some gold and some cash."

Detrick says he is encouraged by, of all things, commercial real estate -- despite the fact that it's been one of the more loathed sectors, and for good fundamental reasons. "Yet the price action on REITs has been very strong." Detrick said since its March 2009 lows and the year to date, commercial real estate has been one of the strongest sectors in the market, with names in the group up between 20% to 30% year-to-date.

"For us, strength like that in the face of negative sentiment only adds to the potential for explosive upside on any good news," Detrick said.

So which stocks are flying in the face of this much hyped (perhaps over-hyped) portent of doom? We asked numerous analysts that very question, and these were the stocks they liked. Note that several have taken breathing periods, paused and consolidated gains over the last few weeks -- and are now moving to new highs, and staging technical breakouts.