Market Breakout Watch: Top Stocks & Trade Setups for This Week

The stock market is right at the breakout level—the S&P 500 (SPY) and Nasdaq (QQQ) are testing key resistance zones. There could be a market breakout in the works here. 

This week will be critical:

• If we break through, and get a market breakout expect a strong move higher.
• If we stall, we may need a pullback before the next leg up.

Let’s break down the best stocks to trade this week.

• Breakout or Fakeout?

  • The S&P 500 ($SPY) and Nasdaq ($QQQ) are sitting at resistance.
  • The market has ignored bad news and continues to push higher.
  • Inside day expected? We could see a pause before the next move.

• China Stocks on Fire!

  • Spec money is flowing into China names—PDD, JD, IQ all showing strength.
  • Watching for follow-through in these hot names.

Momentum Breakout Plays

1. Affirm (AFRM)

   • Key Level: $80 breakout could trigger another leg up.
   • Strategy: Look for a weak open, then a red-to-green move.

2. Roku (ROKU)

   • Earnings breakout in play.
   • Setup: Entry on a breakout above $110 or a dip buy.

3. DraftKings (DKNG)

   • Fresh all-time highs—momentum is strong.
   • Watch: Could see continuation but may need a rest day.

4. Verve (VERV)

   • Low-float runner with a strong chart.
   • Setup: Breakout over $10 triggers upside momentum.

China Tech Stocks Heating Up

5. Pinduoduo (PDD)

   • China momentum leader—watch for a breakout over $123.
   • Key Level: If volume holds, we could see a strong move.

6. JD.com (JD)

   • Nice range breakout setting up.
   • Trade Plan: Look for an entry over resistance or a pullback buy.

7. (IQ)

   • Breaking out after long consolidation.
   • Setup: Watch for strong volume confirmation before entering.

Reversal & Pullback Setups

8. Lululemon (LULU)

   • Massive sell-off on Friday—could be a short on any gap-up.
   • Strategy: If it spikes early, look for a fade setup.

9. Super Micro (SMCI)

   • Big range break forming—breakout 
   • Watch: If it clears $53-54, this could squeeze higher.

10. Fannie Mae (FNMA)

• Breakout setup at $7.21.
• Strategy: Watch for volume confirmation before entering.

• Wait for confirmation before jumping into breakout trades.
• If the market break out, look for strong volume follow-through.
• China stocks are in play—keep a few on the radar.
• If the breakout fails, be ready to shift into defensive trading.

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