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August 13, 2025
The 52-Week High Trick Beating the Market?
Why breakouts after long pauses can still win—and how to find them
Yesterday's Profit Panel dug into a simple idea that many pros still use: new highs after a long pause. It sounds too simple. But the logic is solid.
A 52-week high means the stock is at its best price in a year.
A long pause (think months of sideways action) clears out weak holders.
When price finally pushes out of that box, it often runs up.
There's no “overhead supply” from trapped buyers. That's why new highs can keep going.
The team's scan was basic and repeatable. Open a 52-week-high list. Sort. Then check the chart and answer these questions:
| | • | | Did this name move sideways for a while before the breakout? | | | • | | Are earnings behind it? | | | • | | Is volume healthy? |
If yes, you have a candidate.
In yesterday's show, our pros used ANET as a live example.
Not to say “buy this now,” but to show how they look for the setup and where they might sell puts to get paid while they wait.
The point wasn't to predict. It was to give you a tool that works when the index is at or near highs and hot money is chasing shiny objects.
They also talked about context. NVDA earnings are coming soon, and semisconductors still drive the tape.
If the leader stays firm, breakouts tend to hold. But if it wobbles, expect a shake and retest.
Either way, the method doesn't change: look for names that paused, then pushed higher.
How to use this (simple plan):
| | • | | Start with a 52-week-high list. |
| | • | | Keep only charts that paused for months and then broke out. |
| | • | | For entries, consider small positions or income trades (like selling a far-below put) so time can work for you. |
| | • | | Have an exit: below the breakout box, you're done. |
Takeaway: New highs aren't hype when they follow a long, quiet build. They're often power. Use a simple screen, a clear chart, and small size. Let the market do the heavy lifting.
To your prosperity,
The ProsperityPub Team
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