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TheStreet Open House

5 Stocks Setting Up to Break Out

WINDERMERE, Fla. ( Stockpickr) -- Following a drop of more than 400 points on the Dow on Thursday, U.S. equity markets continue to swing wildly on Friday as investors pile right back into the gold trade.

As of most recent check, the Dow was off by around 110 points at 10,880.08, and the S&P 500 was down by 10.69 points at 1129.96. The tech-heavy Nasdaq was also lower, by 23 points at 2357.38. At one point during today's session, the Dow was trading over 11,000, so you can see that volatility continues on Wall Street.

Strong demand for gold has propelled gold to a series of record highs as market players worry over the potential for a worldwide recession. Many traders are also concerned that a European bank may soon collapse Lehman-style if that region is hit with a widespread banking meltdown. Europe has tried to stem the banking problem by banning short-selling on bank stocks on a number of major exchanges. There was a similar attempt in the U.S. during our banking crisis in 2008, but it failed to stop U.S. bank stocks from plunging dramatically.

Related: 5 Big Stocks to Trade for Gains

Gold soared as high as $1,881.40 an ounce during today's trading session. This record high has now put the yellow metal up over 30% so far in 2011. The strength in gold has also pushed a number of gold miner stocks into new 52-week-high territory. Gold mining players such as Yamana Gold (AUY), New Gold (NGD) and Randgold Resources (GOLD) have all printed new 52-week highs today as gold has soared.

The top traders in the world know that markets are made up of thousands of stocks and tons of sectors. With so many moving parts, there's always some sector or stock that's acting strong, doing its own thing and staging a breakout.

With that in mind, here's a look at a number of stocks that look poised to break out and trade higher from current levels.

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