Breakoutwatch Weekly Summary 07/28/18

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
Technology Stocks Under Pressure; Rare DB and Volatility Squeeze Breakout

Despite setting a new high on Wednesday following the White House's announcement of a trade deal with the EU, the NASDAQ closed the week with a 1.1% loss. There were two distribution days (Tuesday and Thursday) and surprisingly heavy selling volume on Friday, which during the summer is usually the lowest volume day. Facebook and Twitter were the biggest contributors to the loss with losses of 19% and 20% respectively.

The best performer this week (UNP) came from an unusual combination of Double Bottom and Volatility squeeze. The double Bottom (DB) pattern is shown with the squeeze with accelerating momentum on the chart below. A Volatility Squeeze occurs when The Bollinger Band (a measure of volatility) falls within the Keltner Channel. We will only show a stock to be in a volatility squeeze if the squeeze is also accompanied by rising momentum as this may indicate an imminent breakout. Note also that the breakout was preceded by an accumulation day (higher close on increasing volume).

You can learn about our methodology for identifying Volatility Squeeze candidates here.

UNP Double Bottom Breakout

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 07/23/18
List Breakouts Avg. Gain
CWH 7 -0.96
SQZ 1 -2.08
DB 2 3.82
Breakouts Detail for Week Beginning 07/23/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-07-23 UNP DB y 143.01 144.85 75 148.56 3.88% 2.79%
2018-07-23 STI DB n 70.04 72.58 73 72.67 3.75% 3.38%
2018-07-23 TSS CWH n 90.02 91.3 80 93.15 3.48% 4.11%
2018-07-26 CTXS CWH n 109.62 113.01 82 112.05 2.22% 1.72%
2018-07-27 CMG CWH n 464.08 472.3 86 472.3 1.77% 0.32%
2018-07-25 RYI SQZ y 12.51 12.7 85 12.25 -2.08% -1.28%
2018-07-23 PYPL CWH n 87.68 89.24 81 85.46 -2.53% 3.8%
2018-07-26 NOW CWH n 190.50 192.32 89 183.95 -3.44% -4.72%
2018-07-24 EHTH CWH n 24.14 24.28 89 23.16 -4.06% -1.57%
2018-07-26 TSCO CWH n 79.57 80.36 86 76.25 -4.17% -0.99%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday July 27, 2018
Symbol BO
Company Industry RS
AMEH 27.20 128,436 Apollo Medical Holdings - Inc. - Common Stock Specialized Health Services 97 24.78
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 25451.1
1.57% 2.96% Up
NASDAQ 7737.42
-1.06% 12.08% Up
S&P 500 2818.82
0.61% 5.43% 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
8.67 %
NASDAQ Composite
3.09 %
NASDAQ Composite
12.08 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Auto Parts Stores
Home Health Care
Manufactured Housing
Home Health Care
Most Improved Industry (by change in technical rank2)
Industrial Equipment & Components
Long Distance Carriers
Manufactured Housing
Charts of each industry rank and performance over 12 months are available on the site


If you received this newsletter from a friend and you would like to receive it regularly please go to the site and you will then be able to register to receive the newsletter.

Copyright (c) 07/28/2018 NBIcharts, LLC dba All rights reserved.
" BreakoutWatch," the "eye" logo, and the slogan "tomorrow's breakouts today" are service marks of NBIcharts LLC. All other marks are the property of their respective owners, and are used for descriptive purposes only.

BreakoutWatch is not affiliated with Investor's Business Daily or with Mr. William O'Neil. Our site, research and analysis is supported entirely by subscription and is free from advertising.