Monday, June 01, 2015

Growth Stocks Setup As Market Searches For Direction

Despite the threat of higher interest rates, bad geopolitical news, and heavy stalling and professional selling every time the market nears fifty two week highs, the market continues make higher lows and inch towards fifty two week highs.

Price volume action among Leading Growth Stocks has been much stronger then recent attempts to rally...volume is stronger and heavy on breakouts, stocks are actually following through and hold up exceptionally well during high volume market market stalling/distributions days, and new setups are ready to breakout. Quite a few from earlier stage, tighter consolidations. Exactly the type of action bullish traders want to see.

$PSXP, $EQM, $CMGE, $MDXG, and $BOFI have formed cup and handle bases, and $LXFT, $JD, $BXMT, $TSEM, $AER, and $ATHM are attempting to bounce off or near their fifty day moving averages.

$SYNA, $SWKS, $AVGO, $GTN, $SHLX, $TNK, $SEDG, and $ACT are following through on recent high volume breakouts.

Traders need to be long or considering getting long. The windows of opportunity during recent rally attempts, to enter a profitable trade, have been very small. Even if this turns out to be another fake rally attempt, the good news is that if the market isn't headed for a bear market, only a major correction, leading growth stocks do breakout of first stage bases and continue higher or form second consolidations as the market corrects. Later stage breakouts should be trailed with tighter stops and sold into major strength. Otherwise, stops should protect the trader's capital.

Random Musing

All of these breakouts and setups have been on the leading growth stocks analysis list for weeks. Click to review them now, and review them often.