As Costco and Wingstop cater the food and Airbnb and Booking get the rooms, tech stocks like Taiwan Semiconductor, ASML, Adobe, STMicroelectronics, Dynatrace, On Semiconductor and Digi International line up for the market's breakout buffet.
All have found a seat at the table on the IBD Breakout Stocks Index. Investors can get a slice of these and other stocks by owning shares of the Innovator IBD Breakout Opportunities ETF. Rebalanced weekly, the BOUT ETF tracks companies on the IBD Breakout Stocks Index.
Among others captured with this ETF, TSM, COST, ASLM, STM, BKNG, DGII and ABNB stock are all in or near a buy zone. Meanwhile, ADBE, DT and more have now broken out and climbed out of range.
Last week, the broad strength in the indexes led to IBD raising the recommended level of market exposure to 80%-100%.
See All Stocks On The IBD Breakout Stocks Index
How To Buy Stocks And When To Sell
With the market currently serving up a veritable smorgasbord of breakouts, investors face a slew of questions.
Should you buy a stock that has already cleared its buy point or buy zone? What about promising stocks that are still forming chart patterns while their peers have already set sail? When is a good time to add shares in positions that are working? What warnings signal it's time to sell stocks or at least pare your holdings? What are the key indicators to gauge strength and weakness — in the indexes and individual stocks?
You can address all those questions with targeted coverage of market timing, how to buy stocks, when to sell stocks and how to read stock charts.
Tech Stocks And Tracking Industry Trends
Underlying industry trends are, of course, a key factor. For example, resurgent strength in the travel industry has boosted companies like Airbnb, Booking, Expedia and cruise line operator Royal Caribbean. Airline stocks have also come into focus. United Airlines, Copa and Alaska Air have all landed on the IBD Breakout Stocks Index.
Tracking the rankings of IBD's 197 industry groups in Stock Checkup is a simple way to spot changing trends.
The airline group is No. 12 among the 197 groups IBD categorizes. ABNB, BKNG and EXPE hail from the travel booking group, which ranks No. 52.
How about the various groups within the semiconductor sector? The Elec-Semiconductor-Fabless group, where Rambus resides, ranks a stellar No. 3.
The semiconductor equipment group ranks a solid No. 21. Including ASML, Aehr Test Systems, KLA and Lam Research, this group is home to several names on the IBD Breakout Stocks Index.
STM, ON and TSM come from the semiconductor manufacturing group, ranked No. 50.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
