Breakoutwatch Weekly Summary 08/05/17

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Contents
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

Weekly Commentary
Strong upward moves in Handle Portend Strong Breakout

I'm back from my European vacation and newsletters are resuming.

While the DJI registered its eighth straight consecutive new high on Friday the NASDAQ and S&P 500 are lagging with a loss of 0.4% for the NASDAQ and a gain of just 0.2% for the S&P. While our market trend signal for the NASDAQ continues to be positive, there have been some negative signs with four distribution days in the last seven sessions (see our latest equivaluechart). Most likely this is  nervousness on the part of investors following the high on July 26 causing consolidation and the upward trend should resume next week following Friday's strong economic report.

NASDAQ Chart
The short retreat from the July 26 high allowed several handles to form resulting in 16 breakouts from the cup and handle pattern this week with an average gain of 5%. The strongest breakout, ESIO, would have been difficult to ride as it gapped up by 16% over its breakout price which greatly exceeds our suggestion of not to buy above 5% from  the BoP. On the other hand the second most successful breakout, CSTM, gapped up by just 2% after rising 5% the day before on 6 times average daily volume. Moves like that before breakout are a strong signal that a strong breakout is likely. Here is the CSTM chart.

CSTM Breakout

New Features this Week

No new features this week
 
Strategy Suggestions

Our latest strategy suggestions are here.

Breakouts Summary by Watchlist for Week Beginning 07/31/17
List Breakouts Avg. Gain
CWH 16 5.06
SQZ 1 -3.51
HTF
0
HSB 1 2.6
DB
0
Breakouts Detail for Week Beginning 07/31/17
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2017-08-03 ESIO CWH n 8.96 10 92 10.43 16.41% 16.52%
2017-07-31 CSTM CWH n 8.75 9 88 9.95 13.71% 14.86%
2017-08-04 AJRD CWH n 23.95 27 86 27.225 13.67% 13.7%
2017-08-04 CSTM CWH n 8.80 10 94 9.95 13.07% 14.2%
2017-08-02 FMC CWH n 78.30 84 92 84.35 7.73% 8.63%
2017-08-04 IBP CWH n 55.10 59 90 58.7 6.53% 8.89%
2017-08-01 CGNX CWH n 95.46 105 96 100.34 5.11% 10.42%
2017-08-01 TREX CWH n 76.11 77 83 79.67 4.68% 7.79%
2017-07-31 PAH CWH n 13.88 14 85 14.45 4.11% 6.77%
2017-08-04 BLDR CWH n 16.06 17 83 16.695 3.95% 4.3%
2017-08-02 AGIO CWH n 59.39 62 85 61.52 3.59% 6.23%
2017-08-04 CRR HSB n 7.31 8 10 7.5 2.6% 2.74%
2017-08-02 AAPL CWH n 153.54 157 82 156.295 1.79% 2.52%
2017-08-03 COT CWH n 15.70 16 82 15.915 1.37% 1.85%
2017-08-04 SJW CWH n 55.60 56 80 55.67 0.13% 1.91%
2017-07-31 NPO CWH n 75.71 77 83 74.33 -1.82% 2.56%
2017-08-01 INGN SQZ y 94.39 96 95 91.08 -3.51% 4.17%
2017-08-01 AXTI CWH n 8.80 9 97 7.65 -13.07% 3.98%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday August 04, 2017
Symbol BO
Price
BO
Vol.
Company Industry RS
Rank
Last
Close
MOMO 46.33 10,214,216 Momo Inc. Internet Software & Services 98 44.05
NEFF 21.25 217,005 Neff Corporation Rental & Leasing Services 97 21.10
IRBT 109.78 1,661,244 iRobot Corporation Appliances 97 102.81
MOD 17.85 497,292 Modine Manufacturing Company Auto Parts 96 17.20
LITE 68.63 2,615,090 Lumentum Holdings Inc. Money Center Banks 96 58.85
RILY 20.35 187,689 B. Riley Financial Asset Management 95 18.45
CVGI 8.95 409,784 Commercial Vehicle Group Auto Parts Wholesale 95 8.85
BEAT 35.40 574,012 BioTelemetry Medical Laboratories & Research 95 33.90
GDOT 40.84 435,914 Green Dot Corporation Credit Services 95 39.67
EDU 82.89 1,808,859 New Oriental Education & Technology Group Education & Training Services 95 79.10
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 22092.8
1.2% 11.79% Up
NASDAQ 6351.56
-0.36% 17.99% Up
S&P 500 2476.83
0.19% 10.63% 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
Dow Jones Dow Jones
4.11 %
NASDAQ Composite
12.08 %
NASDAQ Composite
17.99 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Aluminum
Aluminum
Resorts & Casinos
Consumer Services
Most Improved Industry (by change in technical rank2)
Semiconductor - Memory Chips
164
Semiconductor - Memory Chips
155
Semiconductor - Memory Chips
174
Semiconductor - Memory Chips
181
Charts of each industry rank and performance over 12 months are available on the site

 

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