Breakoutwatch Weekly Summary 08/12/17

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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

Weekly Commentary
Our market trend indicators remain positive despite the three major indexes losing over 1% as traders took profits in response to heightened tension with North Korea. The NASDAQ Composite was the biggest loser as it gave up 1.5%. Friday brought some relief as threats and counter threats continued but volume was well below the 50 day average.

Inflation remains low which implies that investors need not fear a fed funds rate hike in the near future. "The fed funds futures market now points to the June FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 57.5%. Last week, the market expected the next rate hike to occur in December with an implied probability of 50.4%." (

The negative sentiment kept confirmed breakouts to just 10 with the cup and handle pattern again providing the bulk of  the successes with 8 breakouts and 2 from the Volatility squeeze pattern.


New Features this Week

No new features this week
Strategy Suggestions

Our latest strategy suggestions are here.

The breakout of GDOT (gain of 15% on breakout) is a further example of the tip I gave last week, which is that strong gains in the handle can portend strong breakouts. Also important, was that the RS Rank was 97, well above our strategy suggestion that the most important factor in strong breakouts is an RS Rank of 94 or above. If you apply our recommended filters for cup and handle stocks and examine the charts carefully you can easily spots potential breakouts such as these.

GDOT Breakout
Breakouts Summary by Watchlist for Week Beginning 08/07/17
List Breakouts Avg. Gain
CWH 8 2.83
SQZ 2 -1.62
Breakouts Detail for Week Beginning 08/07/17
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2017-08-08 ASYS CWH n 9.45 9 96 10.5 11.11% 11.11%
2017-08-09 ERI CWH n 21.05 22 90 23.325 10.81% 11.16%
2017-08-09 GDOT CWH y 40.84 46 95 44.88 9.89% 14.79%
2017-08-07 ETSY CWH n 15.27 15 89 16.21 6.16% 6.22%
2017-08-11 EPAY CWH n 29.00 30 80 29.98 3.38% 3.45%
2017-08-10 MITT SQZ y 19.35 19 81 19.34 -0.05% 1.09%
2017-08-07 BYD CWH n 26.24 27 87 26.18 -0.23% 1.75%
2017-08-08 KLXI SQZ y 52.18 53 89 50.52 -3.18% 4.25%
2017-08-07 ALDW CWH n 12.27 12 94 11.14 -9.21% 0.16%
2017-08-07 GAIA CWH n 12.45 13 90 11.3 -9.24% 8.43%
*RS Rank on day before breakout.
12 Month Successful Breakout History

Top Rated Cup and Handle Stocks as of Friday August 11, 2017
Symbol BO
Company Industry RS
IRBT 109.78 1,643,440 iRobot Corporation Appliances 97 102.23
BEAT 35.40 596,164 BioTelemetry Medical Laboratories & Research 96 34.53
LRCX 170.00 3,905,078 Lam Research Corporation Semiconductor Equipment & Materials 94 154.26
HOFT 44.40 114,032 Hooker Furniture Corporation Home Furnishings & Fixtures 93 42.35
AEL 28.07 661,869 American Equity Investment Life Holding Company Life Insurance 92 27.74
BLDR 16.75 997,624 Builders FirstSource General Building Materials 92 16.33
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 21858.3
-1.06% 10.6% Up
NASDAQ 6256.56
-1.5% 16.23% Up
S&P 500 2441.32
-1.43% 9.04% 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
2.21 %
NASDAQ Composite
9.11 %
NASDAQ Composite
16.23 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Consumer Services
Most Improved Industry (by change in technical rank2)
Processing Systems & Products
Computer Based Systems
Publishing - Books
Publishing - Books
Charts of each industry rank and performance over 12 months are available on the site


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