Must-See Charts: Stocks Making New Highs

When a stock hits a new high, like a new 52-week high or a new all-time high, many investors will quickly get interested and start to take notice. This happens for some very good reasons.

First of all, a stock hitting new highs is a clear example of strength, and when you're investing in the stock market, it's always a good idea to own stocks that are strong and displaying strength. It shows that the stock is in high demand and that big money (institutional investors) is supporting the price and snapping up shares at any cost.

Another great reason that can lead to new highs for a stock price is that a company's strong fundamental backdrop is causing its price to surge. We saw this in companies such as Netflix(NFLX Quote) and Green Mountain Coffee Roasters(GMCR Quote) this year. Both firms were growing sales at extremely high rates, especially high for a period of poor economic growth. As these firms grew their sales at more than 20%, the stocks followed suit and rose to new highs, helping anyone invested in the stocks make a pile of money.

It's also worth noting that both of these stocks were heavily shorted, and as the bears were squeezed out of their positions, it helped push them to levels they probably wouldn't have reached otherwise. ...