Core Viewpoint - The article introduces a formula for identifying stocks that are breaking out from long-term lows, emphasizing the importance of this method during the transition from the first to the second phase of market cycles [1]. Group 1 - The formula is based on principles from "Laughing at Bulls and Bears" and focuses on stocks that show strong upward momentum after a prolonged period of low performance [1]. - The article highlights that certain stocks in the CXO sector have recently met the criteria set by the formula, indicating potential investment opportunities [1]. - It is noted that stocks that break out from a year-long bottom should be closely monitored, as the sequence of breakthroughs among leading stocks in an industry is crucial [1]. Group 2 - The article suggests maintaining a cumulative stock pool rather than clearing previous selections, as many stocks tend to adjust after breaking out from the bottom [1]. - For those using multiple stock screening tools, it is recommended to set up automatic stock selection to enhance efficiency and execution speed [1].