These Five Top Stocks Are Carving This 'Super Growth' Pattern As S&P 500 Consolidates

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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 .

[ibd-display-video id=2839602 width=50 float=left autostart=true]Charles Schwab, fellow online broker age 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%. The S&P 500 rose modestly Monday afternoon.

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 rose 1% to 45.12 on the stock market today after closing 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 rose 0.6% to 44.45 Monday.

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 fell 4 cents to 92.61, just above 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 advanced 1.2% to 70.80, clearing their 50-day line after finding resistance there in recent 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 closeout retailer shook off morning losses to rise 1.4% to 46.65. Ollie's jumped 2.45% to retake its 50-day line on Friday.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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