The major indexes continue their efforts to establish a market bottom and spark of a new uptrend. In the meantime, market leaders Vertex Pharmaceuticals, ELF Beauty, BJ's Wholesale Club, Cadence Design Systems, Enphase Energy and ON Semiconductor are among 25 stocks to watch from a wide range of sectors that have earned a spot on the IBD Breakout Stocks Index.
Joining VRTX stock from the broad medical sector, Biogen, Shockwave Medical, Sarepta Therapeutics, Privia Health, Cross Country Health and HealthEquity also make this proprietary stock screen.
Pumping up interest from the energy sector, solar energy leader Enphase Energy earns a spot as well, alongside Comstock Resources and Flex LNG. A cloud blocked the sun for Enphase Wednesday as it and solar stocks in general took a hit, sending ENPH below its 50-day moving average.
In addition to tech stocks ON Semiconductor and IBD Long-Term Leader Cadence, cloud, 5G and artificial intelligence solutions provider Super Micro Computer also appears on the screen.
Among retailers, Murphy USA joins BJ's Wholesale Club, while cosmetics and personal-care products maker ELF Beauty earns its day in the spotlight.
See Who Joins Vertex, Enphase On The IBD Breakout Stocks Index
Prepare Now To Make Money When Market Rebounds
It's no surprise that volatility rules the day, given inflation and recession fears, geopolitical turmoil and a midterm election. But history has a way of proving that strong uptrends begin when news and when investor sentiment is at its worst.
To be honest, even the most knowledgeable experts just don't known when the tide will finally turn.
In the meantime, investors need to stay engaged, laying the groundwork to make money once a market bottom gets established and the indexes flash a sustainable follow-through day.
Tuesday's big gap-up is a welcome sign. But today's action emphasized that it takes more than a few up days for a real trend change to kick into gear.
In addition to tracking The Big Picture and Market Pulse, investors should also watch the behavior of leading stocks. Look for issues that are setting up interesting chart patterns and potential buy points.
And always keep an eye on the price and volume action around key moving averages.
Vertex Among Market Leaders Eyeing Buy Points
Within this tough backdrop, market leaders VRTX, MUSA, Stride, International Money Express, HealthEquity and other components on the IBD Breakout Stocks Index are setting up potential buy points.
Vertex is testing a 306.05 entry in an early-stage flat base while K-12 online curriculum provider Stride approaches a 45.03 buy point in a cup pattern. LRN stock jumped over 6% Tuesday, but volume was light. It closed slightly higher Wednesday.
Shockwave, ON Semiconductor, IMXI and others provide good examples of stocks finding support at their 50-day moving averages as they try to climb higher. Earlier this week, ON was featured as the IBD Stock Of The Day.
Meanwhile, Enphase, BJ's and others reveal how that benchmark line remains a testing ground.
CDNS and PRVA stocks highlight how the 50-day line can also mark resistance that tests new advances.
While reviewing IBD Breakout components, look for price action around key moving averages and stocks forming chart patterns. Along with price and volume behavior, you've uncovered the best way to find profitable positions in a new uptrend.
Build your watchlist and streamline your research by tracking IBD stock lists. You'll find several names on the IBD Breakout Stocks Index that are also components of the IBD 50, IBD Sector Leaders, and other proprietary stock lists.
Currently, ENPH and CCRN are both on IBD Sector Leaders, while VRTX, ENPH and CDNS are all on the IBD Big Cap 20.
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 funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
