BALTIMORE (Stockpickr) -- What a difference a month makes. In the last four weeks, U.S. stocks have made an about-face, suddenly shifting from a sideways churn back into rally mode. That's a welcome change for investors who've been feeling their confidence waning in equities in 2014.
The better news is that we're likely to continue to see upside this year. 2013 was a momentous year for stock investors. It was one of just 11 of the years since 1975 where the S&P returned more than 20% gains. On average, during the year that followed that big gain, the big index tacked another 12.8% onto its winnings.
As I write, we're right on track for a double-digit follow-up performance in 2014. To find the big names best-positioned to take advantage, we're turning to the charts for a technical look at five setups to trade for gains this week.
If you're new to technical analysis, here's the executive summary.
Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.
Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.