With the fourth quarter approaching let’s take a look back at some of the best Stage 2 breakouts of 2019 so far. Note this is certainly not an exhaustive list but a good sample of the major trends so far in 2019.
IEF – Bonds actually broke out in late 2018 but have been in a persistent Stage 2 uptrend ever since that breakout with hardly a consolidation. Many are now focused on whether the U.S. will eventually get negative interest rates. Instead of worrying about that I’d rather watch this chart and know that whenever this tops out in Stage 3 and starts to rollover is when we should expect interest rates to start rising again. Until then they will keep falling as long as bonds remain in Stage 2.
ROKU – One of the biggest winning tech stocks this year so far is ROKU. Note the volume on the Stage 2 breakout, over 100 million shares traded at over $70 which is more than $7 billion dollars of stock changing hands that week. That big institutional buying propelled ROKU to gain more than 100% after the Stage 2 breakout.
LSCC – Semiconductor stocks have been mixed this year but the big winner in this sector has been LSCC. Again note the massive volume on the breakout, about 4x average volume traded that week as it erupted from a Stage 1 base.
SE – Software has been a big winning theme during 2019 and SE is just one of many software stocks that have gained in 2019. SE had over a year long IPO base before it broke out for two consecutive weeks on huge volume early this year into a Stage 2 uptrend.
ENPH – Besides precious metals, solar stocks have been one of the new Stage 2 breakouts of 2019. Besides the recent pullback ENPH has seen relentless accumulation since its Stage 2 breakout earlier this year.
GLD – Gold, silver, and mining stocks have all enjoyed a massive Stage 2 breakout this year on big volume. What was appealing about this breakout is how long gold has been basing. From Stage Analysis we know that big Stage 1 bases can produce some of the best Stage 2 uptrends and gold has been basing for multiple years before this breakout.
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