Breakoutwatch Weekly Summary 12/09/17

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

Weekly Commentary
High Tight Flag Watchlist Available Again

I'm pleased to report that data errors that were corrupting this watchlist have been corrected and the watchlist is available again.

The three major indexes all slipped slightly compared to the previous Friday's close as investors approached the markets with caution ahead of the tax reform reconciliation between the different versions from the House and Senate. Critical to these negotiations this week will be the outcome of Tuesday's election in Alabama. Should the Democratic candidate win, then pressure to complete negotiations before the end of the year will intensify and nervousness among investors that this will not be achieved will likely increase. Hence the outcome of the election could have a major impact on next Wednesday's trading.

The NASDAQ started the week with a retreat on above average volume and continued with positive gains but on below average volume. The effect was to limit the number of confirmed breakouts to just 6. The strongest by far was RVNC which broke out from a cup and handle pattern on Tuesday. However, the stock gapped up at the open by more than 18% above the breakout price putting it out of our 5% range limit. The strength of this breakout is surprising considering the day before the stock lost 7% the day before.

On the other hand, ETSY, which broke out from a Volatility Squeeze pattern on Monday conformed more to our strongly suggested criteria of looking for stocks with upward momentum (meaning positive price and volume moves) in the handle or squeeze. Note the price gains on above average volume on the two days before breakout. When perusing our CWH or SQZ watchlist and charts , look for these features.

SQZ breakout for ETSY

New Features this Week

No new features this week.
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 12/04/17
List Breakouts Avg. Gain
CWH 2 15.48
SQZ 3 7.14
HTF 1 4.41
Breakouts Detail for Week Beginning 12/04/17
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2017-12-05 RVNC CWH n 28.35 35 80 34.65 22.22% 31.22%
2017-12-04 ETSY SQZ y 16.84 18 83 19.32 14.73% 15.91%
2017-12-07 GGAL CWH n 59.76 62 95 64.98 8.73% 9.55%
2017-12-05 ETSY SQZ y 17.92 18 91 19.32 7.81% 8.93%
2017-12-06 LOV HTF n 11.12 11 99 11.61 4.41% 11.51%
2017-12-07 STRL SQZ y 17.87 18 96 17.67 -1.12% 5.76%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday December 08, 2017
Symbol BO
Company Industry RS
SORL 8.45 1,024,094 SORL Auto Parts - Inc. - Common Stock Auto Manufacturers - Major 95 6.97
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 24211
-0.09% 22.51% Up
-0.51% 26.56% Up
S&P 500 2637
-0.2% 17.78% Up
1The Market Trend is derived from our proprietary market model. The market model is described on the site here.
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
11.07 %
Dow Jones
13.82 %
NASDAQ Composite
26.56 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Auto Parts Wholesale
Auto Parts Wholesale
Recreational Vehicles
Most Improved Industry (by change in technical rank2)
Home Improvement Stores
Drug Related Products
Wholesale - Other
Wholesale - Other
Charts of each industry rank and performance over 12 months are available on the site


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