5 Break-Out Stocks: The Search for Survivors
iShares Silver Trust
Another potential breakout trade could be setting up nicely for the iShares Silver Trust ETF (SLV). This is a grantor trust that is designed to provide a vehicle for investors to own interests in silver. The purpose of the trust is to own silver transferred to the trust in exchange for shares. This ETF is still up over 35% this year despite a massive drop a few months ago.
If you take a look at the chart for iShares Silver Trust, you'll see that this ETF has been making higher lows and higher highs since it hit a near-term bottom in June at $32.50 a share. Whenever a stock is showing a pattern like this, it can mean that large traders are buying any dip and paying up to have exposure to the stock. The SLV is now quickly approaching a big breakout if it can manage to trade above some near-term overhead resistance at around $42.78 a share.A move above that level could mean that the SLV is setting up for a big run back toward its recent high of 48.35 a share. If the bears can't hold it back here on any test of that breakout level, then the SLV could squeeze the bears who're short this ETF. The shorts could easily get persuaded to cover some bearish bets if the SLV sees a volume move through $42.78 a share. I would look to buy the SLV if it clears $42.78 on strong volume that tracks in close to or well above its three-month average action of 36.8 million shares. Another great way to play an SLV breakout is to buy some call options on the ProShares Ultra Silver (AGQ) since this trading vehicle moves twice the daily perfume of silver. That trade is more risky but will have a bigger reward if the silver breaks out here. Either way, make sure you manage your trades with tight stops in case any future breakout in silver is a false move.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV