In this bullish market with the recommended market exposure level at the highest-possible 80%-100% range, the IBD Breakout Stocks Index showcases names like Nvidia, Disney, Block, Axon Enterprise, ServiceNow and more. Including Nvidia stock and Disney, several are in or near a buy zone.
But one standout star on the index is Credo Technology. After posting blowout earnings and scoring a double upgrade from Bank of America, Credo stock soared nearly 48% Tuesday. After continuing its sharp ascent early Wednesday, the stock has come off its highs. The provider of high-speed connectivity solutions for the data infrastructure market has also secured a spot on the IPO Leaders list.
See Who Joins Nvidia, Disney And Credo On The IBD Breakout Stocks Index
BOUT ETF Rides Breakout Bounce
Updated weekly, the Innovator IBD Breakout Opportunities ETF tracks the companies on the IBD Breakout Stocks Index. Since pulling back to reset its base count in October of last year, the exchange traded fund has made a strong ascent.
Boosted by gains in stocks like Nvidia, Axon, ServiceNow and many others, the BOUT ETF broke out again in October. Coming from a first-stage base following another reset, the ETF continues to rise, with its relative strength line closing in on a 52-week high.
Up again Wednesday, the BOUT ETF notched another record highs before easing back.
Nvidia Stock Among Breakouts Near Buy Zone
Many names on the IBD Breakout Stocks Index are extended, including ServiceNow, Axon, Square parent Block and 2021 IPO Clearwater Analytics. But others remain in or near buy range.
After floating just below the 140.76 buy point it initially cleared in October, Nvidia spiked to retake it on Wednesday. Earlier, the IBD 50 and IBD Leaderboard member showed resilience by finding support at its 50-day moving average on Nov. 27. Nvidia stock also just climbed back above its 21-day line.
At Tuesday's close, Salesforce was in buy range, finding support at its 21-day exponential moving average. But after the company reported third-quarter earnings and topped sales estimates, Salesforce stock gapped up beyond buy range on Wednesday.
Featured in this column last week, Disney stock continues to work on an early-stage cup pattern. The buy point is 123.74.
Defense contractor Heico is trying to recapture the 269.38 entry it cleared earlier as it holds support at its 21-day line. MercadoLibre — the Amazon of Latin America — is trading below its 50-day line as it works on a second-stage consolidation. MELI stock is up nearly 3% Wednesday.
Meanwhile, after skyrocketing well out of buy range as its RS line takes flights, shares of Credo have pulled back. But the stock remains on pace for a 38% gain for the week.
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.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
