Breakout Trades

Here are some stocks that are making new highs. I have the symbols and the buy-limit prices. Initial stops should be 20-30% below your buy price and when the stock moves in your favor and starts making new highs move the stop to 5% below your buy price. Use these stocks as a starting point and you can always add additional filters to narrow the list down.

DCTH---2.75
EGO --- 9.75
UVE---4.75
HEAT----7.50-7.75
GFI---13.50-13.75
KOPN----3.50
CATT----8.25
MYRG---18.25
SA----24.50
ANV---6.75
PAS---25
ARQL---4.75-5

There were 47 stocks that showed up on my list and many of those were Gold stocks. Please note that majority of these stocks are small caps and when they move they move fast which is like a double edged sword.

Another way to play this is with options especially for stocks that have decent daily volume > 1M. You can buy options 6-9 months out with the strike price that is closer to the buy price.
For example, you can buy Jan-10 15 calls at 1.85, so your risk is $185 on 1 contract (100 shares) and if the stock closes above 16.85 by Jan 10 you'll make money. Let's say that the stocks moves up from here then the option will gain value too and you can sell the option later on for a profit. If by October-November the stock does not move up or declines from the current price, you can still sell your option for some loss. This is just a directional play and there is more to options than this. No matter what happens you want to sell the option by November.

Here is a very good blog if you'd like to learn more about options.

http://blog.mdwoptions.com/options_for_rookies/