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Breakouts for Jan 7th: If you are looking for a stock to do well after a cacophony of failure, then the first two picks are likely to provide the best opportunity for return. The first pick, ANF, is a highly rated Investor Business Daily stock. The stock broke resistance on results which showed a 10% jump in same store sales. Given the unhealthy state of the market, a retest of $47.35 is not out of the question providing opportunity for fills down to $48.45. The price target is adjusted from a point-n-figure projection of $86.00. Supporting the move in price was a buy signal in the MACD trigger line and a breakout in on-balance-volume. The second pick, BLK, is another fundamentally strong stock. The stock skipped past resistance on an improved earnings outlook, combining a price breakout with a "buy" signal on the MACD trigger line and an uptick in slow stochastics and on-balance-volume. As with the previous pick, the stock has no overhead resistance, so the price target is based on point-n-figure projections of $94.00. The third pick, GERN, first featured on Oct 26th, and at this point is a pure momentum play. GTC orders down to $8.51 should be good for fills and I would maintain a minimum stop at $8.19 - but this should be adjusted to your own risk tolerance. The stock did get a ruling in its favor with regard to a patent infringement, but the real move in the stock came on afternoon trading on the back of strength in the Stem research sector. The price target is based on a point-n-figure chart projection of $15.00.

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"IBD" refers to Investors Business Daily

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