Breakoutwatch Weekly Summary 01/07/17

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New Features this Week
Strategy Suggestions
Breakouts Summary
Breakouts Detail
Top Cup and Handle Chart Pattern Stocks
Breakouts Index
Major Indexes Performance
Best Performing Index
Best Performing Industry
Most Improved Industry

Happy 2017
Weekly Commentary
The NASDAQ Composite broke out of its recent trading range on Friday to a new high and for the week significantly outperformed the other major indexes with a gain of 2.6%. Trading volume on each  day of the new year was above average but the number of breakouts was limited to just six. Each of these came from a squeeze situation resulting from the narrow trading range over the last two weeks. Three were from true Volatility Squeeze patterns and three from Cup and Handle patterns with a squeeze in the handle.

GIFI broke above its handle pivot on Thursday and continued to gain on Friday. Note that the gain was insufficient to relieve the squeeze position but because momentum trend turned down slightly, so GIGI did not qualify  for our Volatility Squeeze list.

GIGI squeeze
SHOP has been in three Volatility Squeeze situations in the last three months (indicated by the black dots on the center line in the lower chart) and finally broke out on massive volume on Thursday.
SHOP Volatility Squeeze

New Features this Week
No new features this week.
Strategy Suggestions
For more information on breakouts from a cup and handle squeeze, see our 04/11/15 Newsletter.

For insight into how we recognize squeeze situations for our Volatility Squeeze watchlist read this.
Breakouts Summary by Watchlist for Week Beginning 01/02/17
List Breakouts Avg. Gain
CWH 3 1.84
SQZ 3 5.92
Breakouts Detail for Week Beginning 01/02/17
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2017-01-05 SHOP SQZ y 44.15 48 81 46.9 6.23% 8.58%
2017-01-06 MIXT SQZ y 6.38 7 83 6.77 6.11% 7.99%
2017-01-05 CYBE SQZ y 27.46 30 98 28.95 5.43% 12.89%
2017-01-04 GIFI CWH y 12.85 13 92 13.25 3.11% 5.29%
2017-01-05 CACQ CWH y 13.53 14 95 13.8 2% 3.47%
2017-01-05 EGAS CWH y 12.65 13 96 12.7 0.4% 0.79%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday January 06, 2017
Symbol BO
Company Industry RS
RYI 16.85 425,613 Ryerson Holding Corporation Metal Fabrication 97 13.80
MSB 11.65 58,126 Mesabi Trust Diversified Investments 96 11.30
SPAR 9.80 194,816 Spartan Motors - Inc. Trucks & Other Vehicles 95 9.15
JOY 28.17 1,679,457 Joy Global Inc. Farm & Construction Machinery 94 28.09
EPE 7.49 3,919,422 EP Energy Corporation Independent Oil & Gas 94 6.77
RIG 16.66 22,337,256 Transocean Ltd. Oil & Gas Drilling & Exploration 93 15.77
MPG 23.15 701,150 Metaldyne Performance Group Inc. Auto Parts 92 22.60
TPC 29.70 1,118,151 Tutor Perini Corporation Heavy Construction 92 27.75
ISIL 22.38 2,111,592 Intersil Corporation Semiconductor - Broad Line 92 22.36
UVE 29.20 502,416 UNIVERSAL INSURANCE HOLDINGS INC Property & Casualty Insurance 92 27.75
These stocks meet our suggested screening factors for our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
Major Index Summary
Index Value Change Week Change YTD Trend1
Dow 19963.8
1.02% 1.02% Up
NASDAQ 5521.06
2.56% 2.56% Up
S&P 500 2276.98
1.7% 1.7% Up
1The Market Trend is derived from our proprietary market model. The market model is described on the sitehere.
2The site also shows industry rankings based on fundamentals, combined technical and fundamentals, and on price alone. The site also shows daily industry movements.
Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite Dow Jones
4.32 %
NASDAQ Composite
11.38 %
NASDAQ Composite
2.56 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Basic Materials Wholesale
Manufactured Housing
Manufactured Housing
Manufactured Housing
Most Improved Industry (by change in technical rank2)
Electronic Equipment
Tobacco Products - Other
Long Distance Carriers
Manufactured Housing
Charts of each industry rank and performance over 12 months are available on the site


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