XLK · 30.5%XLF · 13.4%XLV · 11.2%XLY · 10.8%XLC · 9.1%XLI · 8.4%XLP · 6.0%XLE · 3.8%XLU · 2.6%XLRE · 2.2%XLB · 2.0% ETFSetups
The setups · 01

Stage 2 Breakout

Enter as a stock turns into its advancing stage.

The biggest, cleanest trends live in what Stan Weinstein called Stage 2, the advancing phase, after a stock has bottomed and the trend has turned. This setup enters as that turn confirms, in a leading sector, on a clean breakout from the base. It waits for the market to vote and never chases a one-day bounce.

How it works

Sector first, then the name.

It starts with the sector. Money has to be rotating into the group, a sector in or approaching its own entry zone rather than one bleeding lower. The strongest names in a leading sector are where the moves begin.

Then the stock itself: a real prior downtrend, a stretch of stabilization, and a confirmed bullish session that flips the daily regime. The entry bar has to open cleanly. If the move already ran away overnight, we pass and wait for the next one.

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A live Stage 2 Breakout signal with entry, stop, and target
The gauntlet

What has to be true before you see it.

Every candidate runs the same conviction screens. Most fail at least one and never reach you. The rejection is the product.

Sector leadership

The name lives in a sector that money is rotating into, not out of. The tide has to be coming in.

Long-term trend

The stock is in a genuine uptrend already. No bottom-fishing in names that are still falling.

Regime depth

The prior weakness was real, deep enough to count as a reversal rather than a shallow wobble.

Entry quality

The breakout bar opens cleanly. If price gapped away from the level, the edge is gone and we skip it.

Where it fits

One of two setups, on the same engine.

Both ETF Setups plays sit on the same daily-regime foundation and run through the same mechanical exit ladder: disaster stop, break-even, partial, runner. Only the entry differs. See the other one, or read how the whole system fits together.

See it fire on real money.

Every Stage 2 Breakout we've taken is in the public record, winners and losers.