These 5 Top Stocks Are Carving This ‘Super Growth’ Pattern As S&P 500 Consolidates

The S&P 500 index is essentially unchanged over the past four weeks, which is offering a chance for quality stocks to form new consolidations. Charles Schwab (SCHW), E-Trade Financial (ETFC), Phillips 66 (PSX), Vantiv (VNTV) and Ollie’s Bargain Outlet (OLLI) are all in flat bases.

XAutoplay: On | OffCharles Schwab, fellow online brokerage E-Trade Financial and refinery operator Phillips 66 are all members of the S&P 500 index. The S&P 500 index closed Friday at 2578.85, closing the fourth straight week of gains or losses of less than 0.3%.

Charles Schwab, E-Trade Financial and Ollie’s Bargain Outlet all have Composite Ratings above 95. Vantiv has a strong 91 while Phillips 66 is an OK 76. All-time winners often have Composite Ratings of at least 95 near the start of their big runs.

IBD’S TAKE: Flat bases require a minimum of five weeks and typically the stock’s decline is no more than 15% from the high to low of the consolidation. Learn more about this super growth stock pattern.

The flat base forms as a stock refuses to cede much ground during a consolidation. That suggests that the stock wants to move higher.

Charles Schwab

Charles Schwab has been consolidating since Oct. 6, with a potential buy point of 46.31. Shares close Friday at 44.68, just above their 50-day moving average. Schwab’s consolidation is forming next to a prior base.

E-Trade Financial

E-Trade’s consolidation also began on Oct. 6, with its entry point at 45.80. Shares finished last week at 44.17 after finding support recently at its 50-day line.

E-Trade’s consolidation is a base-on-base pattern, forming just above a prior flat base, which in turn set up just over another flat base.

In addition to Schwab and E-Trade, fellow brokerage TD Ameritrade (AMTD) also is acting well, currently in buy range.

Phillips 66

Phillips 66 has a short up-and-down flat base that goes back to Oct. 13 with a 95.10 potential entry. The refinery’s stock is at 92.65, finding support at their 50-day line.

Warren Buffett’s Berkshire Hathaway (BRKB) has a 15.9% stake in Phillips 66.


Vantiv’s consolidation, another flat base on top of a prior base, goes back to Sept. 16 with a buy point of 73.24. Shares finished the week at  69.99, but have been finding resistance at its 50-day line for the past of days.

Vantiv offers payment processing products for banks and merchants. Back in July Vantiv agreed to buy U.K.-based WorldPay for $ 10 billion.

Ollie’s Bargain Outlet

Ollie’s Bargain Outlet has a buy point of 47 in a consolidation going back to Oct. 5. The current consolidation is next to a prior flat base that did not take off. Shares of the close-out retailer rose 2.45% to 46 on Friday, retaking their 50-day average.


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