WINDERMERE, Fla. (Stockpickr) -- U.S. stocks are trading to the upside today despite continued concerns over the European debt crisis and renewed unrest in Egypt.From a psychological perspective, it's always bullish when the market trends higher in the face of negative news. This is why I am consistently saying to trade the trend, or to trade according to what the market is doing. If you focus too much on what the news, you can easily become biased and lose your emotional edge on the market, leading to bad trading decisions. The market wasn't created to give you money; it's there to make you money if you stay open to all possibilities. The trend is all that matters once you place your bets, not your emotions. Are you on the right side or the wrong side? Your profit and loss statement will tell you that quickly. Let's also not forget that the market is going to see plenty more open market purchases from the Federal Reserve through its quantitative easing program into June. This is a powerful force that could act as a put on stock prices until the program is over. I know lots of traders want to be bearish ahead of the end of QE2, but before you start loading up on puts and shorting the markets, make sure the trend and price action is telling you that it's the right move. Related: 11 Stocks That Could Soar Off Zynga's IPO The Dow Jones Industrial Average is up over 25 points to 12,428, and the S&P 500 is trading up 6 points to 1332. The tech-heavy Nasdaq has added 10 points to 2793. All three are still within range of their 52-week highs. It's also worth noting that the three indices have started to recapture their 50-day moving averages. That's the key level to watch in the coming weeks to see if it becomes support or resistance. If the market wants to trade higher into the end of QE2, then plenty of stocks are going to set up to be bullish and break out. Trading breakouts is not a new game on Wall Street. This strategy has been by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. Here's a look at a number of stocks that look poised to break out and trade higher from current levels.
Melco Crown Entertainment
Chipotle Mexican Grill
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