#IBDpartner

As traders always looking for the next move we try to have access to as many tools as we can and today we’re going to share with you one of our favorite ways of using MarketSmith:

Launch MarketSmith 

Go to Stock Ideas on top and a box appears with Reports, Screens, Market Analysis.   Under Reports go to Near Pivot, hit View

Once you do that the bottom field populates with  stocks that are below breakout, listing the pattern and other pertinent information.

This is how we found PYPL, which now is under actual Breakout list.    We try to stay as close as possible to the base and like to have stocks on our watch-list before breakouts. Why?

1) by watching them for days before breakout you become familiar with their behavior.

2)  a lot of time the intraday pattern for entry is actually before the breakout (remember BABA) while at the breakout point you have shenanigans that often stop traders out.  We’d rather be in a few points under relaxing with a profit cushion and watch the fireworks at breakout points.    Caveat here — the anticipation trade works very well in strong bullish tapes like the one we are enjoying, not so much in neutral/range bound tapes.

See you on the streams. HCPG