Last month, the Wall Street Journal gave a history of the ups and downs on the New York Stock Exchange. Now, as the artificial intelligence boom has the tech-heavy Nasdaq near all-time highs, the Investor's Business Daily Breakout Stocks Index showcases a horde of stocks to watch. But in this frothy market, investors should heed rules for both how to buy stocks and when to sell.
Updated weekly, the Breakout Stocks screen provides a good opportunity to analyze stocks like Charles Schwab, Hims & Hers Health and CrowdStrike, which are either setting up or trying to hold on. Highfliers like Alphabet, AppLovin, GE Aerospace and IPO Leader Life360 also bring risk management and guidelines for when to lock in profits into focus.
See All Names On The IBD Breakout Stocks Index
Stocks To Watch As New Bases Form
In addition to Charles Schwab, CrowdStrike and Hims & Hers Health, a host of other names continue to form new chart patterns.
Veeva Systems, Zscaler, Quanta Services and Emcor also fit that bill. Featured in IBD Stock Analysis on Sept. 26, AI infrastructure play Emcor continues to work on a second-stage flat base with a 667.64 buy point. On Thursday, the stock rose for a fifth straight session to close just 1% shy of that entry.
From both the buy and sell side, investors should monitor action around key moving averages when analyzing stocks to watch. Emcor, for example, trades above both its 21-day exponential moving average and 50-day line.
CrowdStrike stock also trades above both benchmarks as it takes aim at a 507.20 buy point in a cup with handle. In a sign of rising technical strength, the 21-day line has climbed back above the longer-term 50-day moving average.
Meanwhile, Schwab stock just lost support at its 50-day line as it forms a flat base with a 99.59 entry. Its 21-day exponential moving average recently retreated below it 50-day line, a sign of short-term technical weakness. Schwab fell below that benchmark as well on Wednesday in heavy volume and closed below it on Thursday.
How Invested In The Stock Market Should You Be Right Now?
AppLovin, Alphabet Extended As 4 Stocks Remain In Buy Range
Fresh off joining Robinhood Markets and Emcor on the S&P 500 last month, AppLovin stock notched a record high on Monday and remains extended beyond buy range.
Google parent Alphabet is also extended and held support at its 21-day exponential moving average on Tuesday and rebounded above it on Wednesday after dropping earlier in the session.
IBD Breakout Stocks Index members still in buy range include Interactive Brokers — Tuesday's IBD Stock Of The Day, Howmet Aerospace, Royal Gold and TE Connectivity.
Playing a key role in AI infrastructure through its supplier connections with the likes of Amazon.com, Meta Platforrms and Alphabet, TE Connectivity landed on the latest list of new buys the best mutual funds. Featured in the IBD Stock Analysis on Sept. 19, the stock trades within buy range after clearing a 212.76 buy point in an early-stage flat base.
As investors track these and other stocks to watch, they should be mindful of guidelines for how to invest. That applies whether things get spooky this October or the market indexes keep hitting new highs.
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 invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
