This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

8 Stocks Setting Up to Break Out

WINDERMERE, Fla. ( Stockpickr) -- The entire U.S. stock market is on the verge of a major breakout.

The bears aren't going to want to hear this, but all three major U.S. indices are within a stone's throw of taking out their 52-week highs. To put things even more into perspective, this was the best first quarter for stocks since 1998.

The market is defying all logic as it continues to rise in the face of so many negative headlines. The real winners so far have been the dip buyers, who continue to be rewarded with ridiculous profits. Not even skyrocketing crude oil prices or a new war raging in Libya has been able to knock this market down. And as a trend trader, I am going to stick with the trend and continue to stress that the probability for higher stock prices is high.

The path of least resistance for the market is up. That doesn't guarantee it will go up, but it does give us an edge on how to play the market from here. Of course, having an edge doesn't mean throwing sound money management or protective downside hedges out the window. You need to be prepared for anything and keep your stops in place.

The area to watch on the Dow Jones Industrial Average for an official breakout now is a close above 12,391. On the S&P 500, the breakout levels to watch are for a close above 1,332 and 1,344, and on the Nasdaq we also need a close above 2,800 and then 2,840.

Related: Bullish Blue-Chip Technical Charts for April

These are all important levels that market players must pay close attention to. If these levels are indeed taken out on the upside, then the market could trend significantly higher. Why? Simply because short-sellers are most likely going to increase bets in here hoping that the market tops out. If they're wrong, they'll be forced to cover those positions which will push stocks higher.

If the bears are right, you'll know rather quickly because the market will stall out and you'll see leading sectors and stocks begin to selloff. Again, I think the probability for the bears being right here is low. And what's great about that is that once the market breaks out, you're going to see strong-performing equities also break out and soar higher.

Trading breakouts is not a new game on Wall Street. This strategy has been pioneered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas.

Here's a look at a number of stocks that look poised to break out and trade significantly higher from current levels.  
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CGR $0.18 0.00%
TIE $16.50 0.00%
AVL $0.00 0.00%
MCP $0.36 0.00%
GMO $0.42 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs