BALTIMORE (Stockpickr) -- After opening lower at the open on Wednesday, S&P 500 pulled out a surprise gain in yesterday's session, adding on to the broad-based rally that kicked off at the start of May. There's no question that buyers are still very much in control here, even if the S&P is getting close to the top of its long-term price channel.
But that hasn't stopped investors from getting anxious about performance this summer. In fact, a quick news search for the term "summer doldrums" brings up more than 6,500 results just from the last few weeks. Perception isn't reality for nail-biting investors right now. In fact, 2014 has brought the second-best May-to-June rally in the last decade with 3.79% gains. The best was 2009 with 4.87%.
How's that for summer doldrums?
To take advantage of the disconnect between perception and performance this week, we're turning to the charts to find five big-name stocks that look ready for a summer breakout.
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.