One of the easiest ways to find stock market leaders is to use the Relative Strength At New Highs screen in the IBD Screener.
This exclusive IBD screen focuses on ideas with market-beating performance, which can be some of the biggest winners in the continuing uptrend in stocks.
IBD readers can easily discern those stock market-beating performers, using the IBD Screener. The Relative Strength At New High lists focus on stocks whose RS lines have hit new highs in recent sessions.
The Relative Strength line measures a stock's price performance vs. the S&P 500 and is the blue line on every IBD chart.
If the market is trending down, good stocks will outperform just by treading water. When the market rebounds, stocks with the best relative strength should bounce back even stronger than the market. And when the relative strength line hits a new high on the breakout day – per IBD MarketSurge chart analysis – the RS Line Blue Dot signal is triggered. That's a bullish signal of stock market leadership.
Astera Stock Breaks Out
This past week, Astera Labs soared past a 199.47 buy point in a high tight flag, breaking out to an all-time high.
The high tight flag looks something like a skyscraper.
The pattern forms when a stock surges around 100% to 120% in four to eight weeks. The stock then corrects 10% to 25% in three to five weeks. The ideal buy point is the high of the flag.
For Astera, from July 16 to Aug. 13, the stock rallied 117% in just five weeks. Then it traded sideways for three weeks, correcting as much as 19%. On Sept. 8, Astera stock surged 13% to break out past the buy point in heavy volume.
Big volume on the breakout day is a sure sign of institutional demand at an important place on the chart.
Astera Labs makes high-bandwidth, low-latency semiconductor connectivity systems for cloud computing and artificial intelligence data centers.
Stocks To Watch In IBD Screener
Inside the Relative Strength New Highs screen, other top stocks to watch include Alphabet, AppLovin, and Robinhood.
Magnificent Seven stock Alphabet soared to new highs in recent weeks after a favorable antitrust ruling. A federal judge ruled that Google can keep its Chrome browser. While the internet giant will be barred from exclusive search contracts and must share search index data with competitors, the judge didn't bar Google from making payments to third parties for default browser placement. However, new agreements will be limited to last no more than one year.
IBD Leaderboard name AppLovin cleared the 20%-25% profit goal from a 428.99 cup-base entry and is extended past an alternate handle buy point of 473.70. Finally, trading platform Robinhood hit a new high Wednesday, but reversed lower.
Both AppLovin and Robinhood soared this past week on news the companies will be added to the S&P 500 on Sept. 22.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on how to buy stocks, the Dow Jones Industrial Average and the stock market today.
