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20 High Volume Breakouts

Seven high volume breakouts : KGC MXL NVDA ABX NEM AEM GOLD

Momentum Burst Breakouts
KGC
MXL
NVDA
ABX
NEM
AEM
GOLD

Stocks go through rally and consolidation phases during up moves. A big up move is often a series of consolidation periods followed by 3 to 10 days rally , followed by consolidation and so on.

When stocks breakout from consolidation such moves are called momentum bursts. Momentum bursts are very profitable setups for swing traders.  Many momentum bursts results in 8% to 40% move in just 3 to 5 days.

MXL a high volume breakout

MXL was consolidating near high for last 7 days. Today it is breaking out on high volume.

Momentum bursts like these can lead to quick 8 to 20% move in 3 to 5 days. However in this market many stocks have struggled to follow through post breakout to new high. especially growth stocks have struggled as beaten down stocks have outperformed so far. 

How to use the IBD Stock Spotlight Daily Section

This is published daily and typically highlights 20 stocks. As you can see from description below the column , “spotlight looks for stocks with strong earnings, sales, and other fundamentals that are in base or breaking out”

If you have IBD subscription and busy working person daily focusing on this section only will save you time.

As you c an see currently defensive sectors are dominating and growth stocks are having hard time following through.

In this phase of this bull move worst performing stocks from last year are best performers. Many struggling sectors have rallied in the hope worst might be over for them.

How to use the IBD Your Weekly Review (85-85)

Every Friday the IBD newspaper publishes a list of stocks under Your Weekly Review. These stocks list is a curated list of stocks with growth and momentum and extremely good source of ideas for growth investor.

Basically it is list of stocks with:

• 85 plus EPS ratings (that means they are in top 15% in relative rank in terms of their earnings growth)
• 85 Relative Strength rating (that means in top 15% by price momentum rank )
• 15% of 52 week high
• 50 day daily average volume above 100000

Essentially it is a list of growth stocks with momentum. It is published on Friday so that subscribers can study it on weekend and create their watch list for next week.

If you are a growth investor with limited time to focus on market during the week, you should focus like laser on this list. Study the stocks in the list. See if any of them is setting up for a breakout. At what price should you buy it. Where should you put stop, you can figure that out ahead of time.

Study the new entrant to the list as they offer new opportunities in the market. Look at IPO making it to the list and steady them.

Growth investing tries to find few home run growth stocks during the year while swing trading other growth ideas for 10 to 20% gain. The focus of your IBD 85-85 list study should be to try and find that one or 2 explosive growth ideas that are likely to make big move of 100% to 500% or more in a year. Or a growth idea with multi year legs which will keep going up for many years as it is in secular growth trend.

If you subscribe to  Marketsmith, then you can generate this list daily by using a simple scan and that way you may not miss any stock that makes to the list during the week. The image shows how you can do that in that scanner.

The key to using it is to develop a process flow to analyse the list weekly or daily and then identify good anticipation setup and figure out your entry point and then focus on entering that position during the week if triggered.

This is must study list for growth investors.

Anticipation setups for today

Overheated markets took a breather. For sustained rally stocks near high start to breakout.

IIIN
FRAN
PATK
CSGS
FIVN
REXR
AOSL
AGRO
OLLI
NNN
CBRL
GCO
PCLN

Anticipation setups for today

 Markets have recovered very well from beginning of the year drop. From extreme oversold levels now we are at extreme overbought levels. 

The Market Monitor indicator of number of stocks up 50% in month is at 32. Such high readings tend to lead to pullbacks in next few days or weeks. 

Bullish Anticipation Setups 
CRAY FIVN EBIX ELLI AGRO IIIN FSLR BAK NVDA EW CRI CSGS GCO CBRL CVTI PATK UAL PCLN CMO TRU MAR SHAK EFOI AKAM

Bullish a nd bearish anticipation setup for today

Bullish Anticipation setups

AGRO QUOT RTN LG INGR

Bearish Anticipation Setups

SPSC TWO OZM QLYS BRX APOG MDRX GPI KFY ARRS TXT SHOR RPD AVX ACAT SCSS TK NOV AXDX GPRO MTRX APAM FLO BOOT RUN BAH NTCT DXCM LABL INSY PLT GBX HABT AN AMBA

OME and EBIX had breakout yesterday

 OME spent time going sideways and formed a base. Now with market showing some signs of improvement it is breaking out. Earnings is due next week.

EBIX is a earnings breakout. Stock is attempting breakout from 3 month base.

As market starts to improve you will see ome of these kind of stocks attracting buy interest.

In order to find stocks like these everyday on your own , you need to develop your own scans on stocks with momentum or growth characteristics.