WINDERMERE, Fla. (Stockpickr) -- There's a lot of talk around Wall Street right now that the market might be setting up for a correction in the very near future.Sure, it's a possibility, but we've been hearing that argument from the bears for the last 1,000 points on the Dow Jones Industrial Average. It seems to me that a far more productive approach than assume a correction is coming is to follow the price action in the markets. As of right now, there are no signs that the market wants to go significantly lower. All of the major averages are still in solid uptrends, and all are trading above key technical levels such as their 20-day and 50-day moving averages. Part of being a trend trader means that you, as a trader, should believe that it's a fruitless endeavor to make predictions in the markets. It's a far better strategy to employ sound money management and just stay with the trend until you see some overwhelming evidence that the trend is over. Related: Technical Setups for the Week To be fair to the bears, some leading stocks, including Coinstar ( CSTR), Rackspace ( RAX) and F5 Networks ( FFIV), have taken a hit to the downside recently. However, market-leading names such as Apple ( AAPL), OpenTable ( OPEN) and Google ( GOOG) continue to act well. Until I see all of the market leaders start to roll over and act poorly, I am going to continue to look for stocks that are setting up to move higher and breakout. Trading breakouts is not a new game on Wall Street. This strategy has been pioneered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. A breakout occurs when a stock makes a move through a significant level of support or resistance, which is usually followed by heavy volume and increased volatility. Wall Street players love to see an upside breakout because it demonstrates strength in the underlying asset as the price breaks above a level of previous resistance. An upside breakout can also take a stock to new highs, which will generate a lot of interest as the stock shows up on sophisticated software that scans for this type of action. Here's a look at a number of solid breakout stock candidates that could have big upside potential from current levels.
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