Breakoutwatch Weekly Summary 07/14/18

You are receiving this email because you are or were a 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.

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
NASDAQ Consolidation Likely

I'm back from my European trip and would like to welcome new subscribers that joined while I was away. For their benefit, I note that we focus on the NASDAQ exchange in our newsletter, as that is where most breakouts from our patterns occur.

The NASDAQ set another new high on Friday at 7843 but as the inset on the chart below shows the index pulled back into a doji candlestick. A doji shows balance between buyers and sellers. It implies indecision and that a change in trend may be near. The 6-month chart shows that Friday's high touched the longer term trend line of new highs. Note that these new highs have been followed by pull-backs, so I would not be surprised to see a consolidation in the near future.  For the year, the NASDAQ has gained over 13% leaving the S&P 500 (4.8%) and the DJI (1.2%) well behind.


Volumes were typically below the 50 day average limiting the number of cup and handle breakouts. The top performer, MYGN gapped up from low in the handle but could have been bought at just above the pivot price. An indication that a breakout was possible was the sudden increase in volume the day before breakout.

MYGN Chart

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.

How to Search our Database

A feature of our site that is often overlooked is the 'Database Search' option on the Mine for Candidates menu. Although this feature dates back to the early days of the site, it remains a powerful method of searching for potential future breakouts.

To summarize, the database search allows you to select stocks by several criteria:
  • Top 100 stock by technical, fundamental or combined technical and fundamental criteria
  • By specific technical and fundamental ratings (CE Cell and Zone)
  • By specific technical criteria
  • By specific fundamental criteria matching the 11 CAN SLIM fundamental requirements
  • These selection criteria can be applied to all stocks, to our watchlists or to stocks still building their bases (Basewatch).
Here is an example of searching Basewatch for stocks with the best combined technical and fundamental criteria:

  1. Choose Stock Group Basewatch
  2. Click Clear Search Criteria
  3. Choose CE cell 4-4 (highest
  4. Choose a sort order (RS Rank)
  5. Click Search Database

Basewatch search

This yields the following results. The Tabs can be clicked to show Core, Technical,Industry or Fundamental Indicators.

Search Results
Breakouts Summary by Watchlist for Week Beginning 07/09/18
List Breakouts Avg. Gain
CWH 3 5.09
SQZ 6 2.07
Breakouts Detail for Week Beginning 07/09/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-07-11 MYGN CWH n 39.35 43.04 85 42.69 8.49% 8.31%
2018-07-09 GLOB CWH n 56.22 56.76 83 58.95 4.86% 2.54%
2018-07-09 EPAM SQZ y 128.27 130.48 86 133.56 4.12% 3.32%
2018-07-12 ATVI SQZ y 78.62 81.37 84 81.5 3.66% 1.65%
2018-07-12 TSS SQZ y 88.20 91.18 80 90.28 2.36% 2.06%
2018-07-09 PNK SQZ y 34.36 34.39 86 35.04 1.98% 1.66%
2018-07-12 EGHT CWH n 20.75 21.65 88 21.15 1.93% 0.72%
2018-07-12 NXST SQZ y 81.01 84 84 82.5 1.84% 1.28%
2018-07-12 SRNE SQZ y 7.21 7.5 97 7.1 -1.53% -1.53%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday July 13, 2018
Symbol BO
Company Industry RS
WTI 8.10 6,365,532 W&T Offshore - Inc. Common Stock Oil & Gas Drilling & Exploration 98 8.08
AMEH 27.20 113,594 Apollo Medical Holdings - Inc. - Common Stock Specialized Health Services 97 23.30
MIXT 18.78 208,444 MiX Telematics Limited American Depositary Shares, Technical & System Software 95 18.53
ANF 27.27 4,138,924 Abercrombie & Fitch Company Common Stock Apparel Stores 95 25.16
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 25019.4
2.3% 1.21% Up
NASDAQ 7825.98
1.79% 13.36% Up
S&P 500 2801.31
1.5% 4.78% 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 NASDAQ Composite
10.12 %
NASDAQ Composite
7.78 %
NASDAQ Composite
13.36 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Manufactured Housing
Manufactured Housing
Manufactured Housing
Home Health Care
Most Improved Industry (by change in technical rank2)
General Contractors
REIT - Healthcare Facilities
Long Distance Carriers
Manufactured Housing
Charts of each industry rank and performance over 12 months are available on the site


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