"Break outs" are the life of a bull market indicating new buys that trigger renewed up trends. They also serve as a crystal ball into market conditions. Failed break outs are a symptom of corrections and one of the first and most reliable signals that a correction is underway.

The stock market is still offering new break outs. Most of them are holding up but some are wilting which is, at least, another indication of a market that has shifted from easy money to unreliable. It appears the market has become a traders market with shorter term cycles. That renders decision making for the average retail investor, and many fund managers, significantly more challenging.

Zebra Technologies (ZBRA) is an example of very powerful break out that gave investors just two sessions, including the day of the break out, to take a position. Following that the stock blasted higher again. That's what successful break out looks like. You can see how prior to the break out there was no reliable indication that the stock was on the verge of a meaningful up trend.

 Molycorp (MCP) has been one of the stronger stocks since the original break out in late March. Recently the stock traded flat near the high. That's bullish. Then it staged a secondary break out above the top of the flat range but reversed in the following session falling back into the range. That's a failed break out from a secondary buy point. When a hot stock fails in just the first renewal of a powerful up trend it suggests conditions are range bound at best.

Autozone (AZO) might come from what seems like an uninteresting business but the stock has been one of the market's leaders and a good indication of the investment stance of fund managers. It also reversed from a secondary buy point following an advance of under 8% from the original break out. Like MCP the advance is stalling early in the renewed up trend. We have been monitoring new break outs and their subsequent trading action to provide insight into how to trade.

Break outs are a critical component for timing the market. If you want to see more on how they work along with other precise market timing indicators try out a free subscription to www.investorbootcamponline.com. Enter the promo code may11in the Join Today page; follow the prompts (no credit card info. required). Be sure to engage the live chat to learn more about to use the extensive information. The Investor Tool Kit, under Boot Camp in the main menu of the member's area, describes bases and buy points in more detail. It's all based on decades of the behaviour of the market's hottest stocks.

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