5 Fresh Stock Bases Mark Yegge Is Watching for Breakout Potential

Finding strong stocks is not simply about chasing whatever is moving higher today. Mark Yegge’s approach starts by screening for stocks showing strong relative strength, momentum, constructive chart patterns, and improving fundamentals—then narrowing that list to candidates worthy of deeper research.

In this review, Mark highlights five names that appeared on his Fresh Bases screen inside the Cash Flow Machine Trade Finder. The setups include double bottoms, cup-with-handle formations, fresh bases, long consolidations, and a coiled-spring pattern, with several stocks sitting close to their identified buy zones.

Key Takeaways

The Search for Potential “Super Stocks”

Mark’s Trade Finder is designed to sift and sort potential trading ideas using the criteria employed inside the Cash Flow Machine system. The objective is to find stocks with strong relative strength and momentum that may have characteristics associated with major long-term market winners.

One of the tools Mark uses is the proprietary Genius Strength Indicator. He describes it as being heavily influenced by relative strength and stock timing. The higher the reading, the stronger the stock is behaving compared with other names in the database.

But strength alone is not enough. Mark also studies recognizable chart patterns and company fundamentals before deciding whether a stock deserves a place on his research list.

1. Teradyne: A Fresh Double-Bottom Setup

The first stock on Mark’s Fresh Bases list is Teradyne. On the weekly chart, he identifies a double-bottom pattern developing inside what he considers a fresh, first-stage base.

In Mark’s framework, the previous undercut resets the base count, creating a new base structure. The important technical level is the pivot near the middle peak of the “W” pattern. During his review, the stock was trading around its identified buy zone and toward the upper portion of its expected range.

The stock also showed a 99 Genius Strength reading, which Mark interprets as extremely strong relative performance compared with the other stocks in his database.

Fundamentals Are Strengthening

Mark also likes what he sees fundamentally. He points to improving sales projections, sharply stronger earnings expectations, positive recent quarterly trends, and a return on equity of approximately 38%.

His conclusion is not that investors should automatically buy the stock, but that the combination of technical strength and improving fundamentals makes it worthy of additional research.

2. Datadog: A Cup With Handle Near the Pivot

Datadog is the second major setup Mark highlights. During the review, the stock was only slightly below its identified pivot and was still completing a cup-with-handle formation.

The cup represents the broader consolidation, while the handle is the shorter pullback where weaker holders can be shaken out before a potential breakout. Mark identifies the top of the handle as the important buy-point area.

Datadog’s fundamentals also attract his attention. He highlights consistent sales growth and steady earnings-per-share growth, including approximately 27% three-year compounded sales growth and 29% three-year compounded EPS growth.

Return on equity, however, was only around 5%. Mark says he generally prefers substantially higher levels, illustrating an important part of his process: a stock does not need every metric to be perfect, but he wants enough positive factors working together to improve the probabilities.

3. XMTR: A Fresh-Plus Base Approaching a Breakout

The third stock is XMTR. Mark describes the chart as a fresh-plus base, meaning it represents the second portion of a base-on-base structure.

The stock had formed a cup pattern and was trading very close to the top of that formation. Mark identifies that level as the key pivot area and notes that the stock was approaching the 0%–5% buy zone above the pivot.

XMTR showed a 98 Genius Strength reading, indicating strong stock-level performance. However, Mark also points out that the industry itself had a much weaker Genius Strength reading of 39.

That distinction matters because Mark believes a meaningful portion of a stock’s chart strength can come from the strength of its industry group. In other words, XMTR may be acting well individually even though its broader industry backdrop is not as strong.

4. KEYS: Breaking Out of a Long Consolidation

KEYS was already approximately 3.2% above its pivot when Mark reviewed it, placing it inside the buy-zone framework he uses.

The chart also showed a 96 Genius Strength reading and had moved above its expected range, signaling considerable momentum. On the weekly chart, Mark focuses on a long consolidation that had finally begun breaking higher.

He compares a lengthy consolidation to a compressed spring: the longer price remains contained, the more meaningful the eventual move can become if the breakout succeeds.

Mark would have preferred to see more volume accompanying the move, but he notes strong momentum and relative strength. Fundamentally, he also highlights improving sales, improving earnings, a return on equity near 20%, and strong recent quarterly performance.

Defining the Reward-to-Risk Framework

Mark’s system displays a target zone where investors often begin taking profits around a 20%–25% advance, while his personal trading plan uses a circuit-breaker level roughly 7% below the pivot.

His emphasis is on entering reasonably close to the pivot so the potential reward remains meaningfully larger than the planned downside.

5. SMCI: A Coiled Spring With Strong Growth Metrics

SMCI rounds out the list and was already familiar to Mark because it had continued appearing across several of his trade scanners.

During this review, the stock was approximately 3.1% above its pivot and still inside the identified buy zone. On the weekly chart, Mark notes that the stock had turned green several weeks earlier and then spent roughly three weeks trading in a relatively tight area.

He describes that behavior as a coiled spring. When a stock remains tightly contained and appears supported, Mark believes the compression can create energy for a stronger move if the stock eventually breaks higher.

SMCI also stood out fundamentally. Mark highlights very strong historical and projected sales growth, three-year compounded earnings-per-share growth of approximately 45%, and three-year compounded sales growth of approximately 76%.

He also notes that the company had experienced earnings and accounting-related issues, but says he believes those problems are behind it. That remains Mark’s interpretation rather than a guarantee.

The stock carried a 96 Genius Strength reading, while its broader group ranked highly in Mark’s system, giving him several reasons to keep the name on his radar.

Why Mark Pairs These Setups With Covered Calls

Mark’s process does not end with identifying stocks that may move higher. His Cash Flow Machine strategy also uses covered calls to create an income component while holding selected stocks.

His stated target is generally to seek roughly 1%–2% per week in covered-call income, depending on the available setup. The idea is that the option premium can provide income even during periods when the stock moves sideways or temporarily fails to advance.

As Mark explains it, selling a covered call means giving another investor the right to buy the shares at a predetermined price before a predetermined date. The seller receives premium in exchange for granting that right, allowing time decay to work in the position’s favor.

Mark still wants to own stocks that he believes have a favorable probability of moving higher. The covered call is not a substitute for selecting a strong underlying stock—it is an additional income component layered onto the position.

What Traders Should Watch

The Bottom Line

Mark’s five-stock watchlist illustrates how he combines several layers of analysis rather than relying on a single signal. He starts with fresh chart bases, studies the pivot and buy zone, measures relative strength and momentum, then checks sales, earnings, return on equity, and industry strength.

Teradyne, Datadog, XMTR, KEYS, and SMCI each offer different technical structures, but all appeared on Mark’s radar because they showed some combination of constructive chart action, improving fundamentals, or strong relative performance.

The larger lesson is to use these setups as research candidates rather than automatic trades. Mark’s objective is to identify stocks with favorable characteristics, define the technical levels that matter, manage risk around those levels, and potentially use covered calls to generate income while the trade develops.