As investors wait for this troubled market to find direction and hopefully recharge its uptrend, there are some stocks building new chart patterns or testing fresh buy zones. You'll find many stocks on the IBD Breakout Stocks Index doing just that, including Pinduoduo, Clean Harbors and Quanta Services.
Rebalanced each week, the Innovator IBD Breakout Opportunities ETF has struggled this year, along with many tech and growth stocks. But the 50-day moving average for the BOUT ETF has started to find a bottom and trend upward.
As the BOUT ETF tries to reestablish its footing, a wide range of stocks from different sectors are forming potential buy points.
Such names from the energy sector include ConocoPhillips, Murphy Oil, Hess, Devon Energy and MPLX.
Joining Clean Harbors from the Pollution Control industry group is waste management and renewable fuel leader Waste Connections. WCN stock was featured in the IBD Stock Analysis on Sept. 2. It it is now testing a 144.56 entry in a cup with handle, while CLH stock trades toward the top of its buy zone.
See All The Names On The IBD Breakout Stocks Index
More Stocks To Watch In Wait-And-See Market
Leading real estate investment trusts, or REITs, have also made a showing on the IBD Breakout Stocks Index. Extra Space Storage and Life Storage are both approaching possible breakouts.
On the tech front, Arista Networks continues to build a large double bottom — a common chart pattern in volatile markets. ON Semiconductor short-circuited after hitting a new high on Aug. 25 but is now trying to recharge a return to its 71.35 buy point.
Agricultural giant Archer Daniels Midland and shipping powerhouse United Parcel Service are both setting up potential new moves.
As this year has shown, no stocks are immune to volatility in the stock market indexes. But even in a weak market, continue to build and update your watchlist.
When a strong market uptrend returns, market leaders — particularly those setting up solid bases with rising relative strength lines — are best positioned to deliver the strongest gains.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to essentially invest in the entire index in addition to or rather than buying the individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
