Breakoutwatch Weekly Summary 02/03/18
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| New Features this Week
| Top Cup and Handle Chart Pattern Stocks
| Best Performing Index
Best Performing Industry
Most Improved Industry
Profit Taking Inevitable After PE Ratio's Above Most Historic Highs
After posting a new high last Friday, the NASDAQ Composite dropped 3.5% this week, while the other two major indexes slid slightly more. Looking at the trend lines I've marked on the the chart, it is not hard to see why this week's decline was inevitable, at least at some point. Since the start of the year the index has moved up more sharply and daily volatility (the width of the upper and lower trend lines) decreased showing increasing confidence in the upward trend. But that couldn't continue as PE ratio's reached historic highs and some profit taking was inevitable.
While Friday's 666 point drop in the DJI may sound huge, in percentage terms, which is what really matters, the drop was only 2.5% and the NASDAQ's drop of 2% was even less. While we might see the fall continue into next week, particularly as another possible government shut-down looms, I expect the NASDAQ will find support near or above the 50 day average. The economic fundamentals are strong as a result of the massive 1.5T stimulus given to the economy, twice that of the Obama stimulus in 2008, and so corporate profits and dividends are almost certain to continue to move higher.
Our market trend signals for all three indexes continue to point higher.
Errors in the major indexes intraday charts which appear on the Alerts page have been corrected.
Our latest strategy suggestions are here.
|Brkout Date||Symbol||Base||Squeeze||BrkoutOut Price||Brkout Day Close||RS Rank*||Last Close||Current % off BOP||Gain at Intraday High|
|*RS Rank on day before breakout.|
|CYRX||9.26||150,836||CryoPort - Inc. - Common Stock||Packaging & Containers||97||8.56|
|ASMB||50.99||244,828||Assembly Biosciences - Inc. - Common Stock||Drug Manufacturers - Major||97||46.57|
|PNK||33.63||1,134,840||Pinnacle Entertainment - Inc. - Common Stock||Resorts & Casinos||95||33.38|
|BZUN||39.98||3,445,413||Baozun Inc. - American Depositary Shares||Catalog & Mail Order Houses||95||35.27|
|These stocks meet our suggested screening factors
for our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
|Index||Value||Change Week||Change YTD||Trend1|
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.
|1 Week||13 Weeks||26 Weeks||Year-to-Date|
|1 Week||3 Weeks||13 Weeks||26 Weeks|
|Auto Parts Wholesale
||Auto Parts Wholesale
||Auto Parts Wholesale
||Resorts & Casinos
|Long Distance Carriers
|Charts of each industry rank and performance over 12 months are available on the site|
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