Three New All-Time Highs to Keep an Eye On

The all-time high list is a raw data point, which could be enormously useful if you know how to read it properly.

The all-time high list is basically a short-cut into the minds of people, who can create and sustain trends. When the list is small and occupied by defensive names – utilities, healthcare, high-dividend payers – it is usually not the best time to be aggressive and expand your market exposure. When the list is rich, expanding into different high-growth industries like tech and retail, it is safer to take on more risk.

Not every all-time is a buy signal. There are three things to look for that will improve the odds of success:

- breaking out from a proper base (the definition of proper depends on your time frame of operation; usually, the longer, the better)

- immediate catalyst (usually earnings related)

- high volume on the day of the breakout (sign of institutional participation)

Today, 78 stocks gained at least 1% to close at all-time highs. Here are 3 names with relatively recent breakouts on a daily time frame:

 

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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