Breakoutwatch Weekly Summary 02/03/18

You are receiving this email because you are or were a BreakoutWatch.com subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.

Contents
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

Profit Taking Inevitable After PE Ratio's Above Most Historic Highs


Historic PE Ratio's

NASDAQ Chart
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.



New Features this Week

Errors in the major indexes intraday charts which appear on the Alerts page have been  corrected.
 
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 01/29/18
List Breakouts Avg. Gain
CWH 14 1.99
SQZ 18 1.93
HTF
0
HSB
0
DB
0
Breakouts Detail for Week Beginning 01/29/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-01-29 QBAK SQZ y 8.80 9.21 91 10.99 24.89% 24.89%
2018-01-29 FOR SQZ y 21.96 22.15 88 25.6 16.58% 20.17%
2018-01-30 FOR SQZ y 22.16 22.35 89 25.6 15.52% 19.09%
2018-01-31 FOR SQZ y 22.36 24.4 90 25.6 14.49% 18.02%
2018-01-31 IMGN CWH n 8.67 9.18 96 9.76 12.57% 15.8%
2018-01-29 TWIN CWH n 28.69 31.34 87 31.03 8.16% 11.36%
2018-01-29 MOD CWH n 23.15 23.25 89 24.35 5.18% 7.56%
2018-01-30 QADA CWH n 42.65 42.7 82 44.65 4.69% 6.33%
2018-02-01 EZPW CWH n 12.50 13.5 82 13 4% 10%
2018-01-30 WIFI SQZ y 23.48 23.58 90 24.09 2.6% 3.75%
2018-02-02 LJPC CWH n 37.82 38.59 83 38.59 2.04% 7.85%
2018-02-01 OPY SQZ y 27.51 28.25 93 28.05 1.96% 3.6%
2018-02-01 CME CWH y 156.49 158.91 80 159.11 1.67% 4.16%
2018-01-29 FBR CWH n 17.15 17.43 90 17.43 1.63% 5.13%
2018-02-01 ERI SQZ y 34.56 34.65 95 35 1.27% 2.14%
2018-02-01 KAI SQZ y 100.26 102.35 82 100.9 0.64% 2.53%
2018-01-29 CVTI SQZ y 28.83 29.52 82 29.01 0.62% 4.86%
2018-02-02 RGC CWH n 23.09 23.1 82 23.1 0.04% 0.3%
2018-01-29 LBC SQZ y 12.93 12.98 99 12.79 -1.08% 1.62%
2018-01-29 RST SQZ y 12.67 12.83 80 12.53 -1.1% 2.45%
2018-02-01 CVTI SQZ y 29.34 30 84 29.01 -1.12% 3.03%
2018-02-01 AMN CWH n 54.25 54.8 87 53.55 -1.29% 2.58%
2018-02-01 MANT SQZ y 52.08 52.31 84 51.25 -1.59% 0.58%
2018-02-01 RST SQZ y 12.79 12.87 83 12.53 -2.03% 1.49%
2018-01-30 EXTR CWH n 14.60 15.08 94 14.3 -2.05% 6.51%
2018-02-01 IGT CWH n 29.51 29.64 85 28.84 -2.27% 1.29%
2018-02-01 VRTX CWH n 171.26 172.99 87 166.24 -2.93% 2.16%
2018-01-30 ENV CWH n 54.70 55.05 82 52.75 -3.56% 1.37%
2018-01-29 ALDX SQZ y 7.46 7.6 87 7.1 -4.83% 3.08%
2018-01-30 IBP SQZ y 73.51 73.9 86 66.8 -9.13% 3.05%
2018-01-29 INAP SQZ y 16.63 17.02 83 14.9 -10.4% 8.48%
2018-01-30 INAP SQZ y 17.03 17.11 87 14.9 -12.51% 2.47%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday February 02, 2018
Symbol BO
Price
BO
Vol.
Company Industry RS
Rank
Last
Close
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
Major Index Summary
Index Value Change Week Change YTD Trend1
Dow 25521
-4.12% 3.24% Up
NASDAQ 7240.95
-3.53% 4.89% Up
S&P 500 2762.13
-3.85% 3.31% 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
NASDAQ Composite Dow Jones
8.42 %
Dow Jones
15.52 %
NASDAQ Composite
4.89 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Auto Parts Wholesale
Auto Parts Wholesale
Auto Parts Wholesale
Resorts & Casinos
Most Improved Industry (by change in technical rank2)
Synthetics
99
Long Distance Carriers
108
Synthetics
168
Personal Computers
215
Charts of each industry rank and performance over 12 months are available on the site

 

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