Breakoutwatch Weekly Summary 10/06/18

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 Loses 3.2% Week-on-Week

The NASDAQ (and S&P 500 ) crashed through the 50 day support level on Thursday and continued to fall on Friday as 'The 10-year Treasury note yield hit its highest since 2011, while the 30-year bond yield trades at its highest since 2014' - Marketwatch. Higher Yields altered the risk trade-off between stocks and bonds resulting in a movement out of stocks (which are at an historically abnormal high Shiller PE ratio of 32.71). The NASDAQ closed at 7788 on Friday and is 4.2% below it's recent high so well short of an official correction (10%) and our market trend indicators remain positive. The next support level is at 7604 (-6.5%) and then the 200 dma at 7483 (-8%);

Consequently, this was a disappointing week for breakouts with only 2 of 8 finishing with a positive gain.

On a brighter note, I've added two new filters to our watchlists this week. See new features below.


New Features this Week
Two New Watchlist Filters

New FiltersI have often remarked that the potential for a breakout can be foreseen by a rise in price and volume on the day before breakout. Technically, this is called 'accumulation' and I've added a filter allowing the selection of stocks that were under accumulation on the day the watchlist was published.

I also had a request from a subscriber to allow a filter on Market Cap. The filter will select watchlist stocks that are either above (or below) a specified total valuation on the day the watchlist is published. The value should be entered in 000's. So a market cap of 1 billion would be specified as 1000000.
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 10/01/18
List Breakouts Avg. Gain
CWH 3 -0.13
SQZ 4 -1.41
DB 1 -0.8
Breakouts Detail for Week Beginning 10/01/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-10-05 EHTH SQZ y 29.45 30.31 94 30.31 2.92% -1.77%
2018-10-05 RDNT CWH n 15.31 15.47 82 15.47 1.05% -5.29%
2018-10-03 XOXO CWH n 34.63 34.68 94 34.51 -0.35% -0.58%
2018-10-04 DE DB n 157.66 158.31 74 156.4 -0.8% -1.25%
2018-10-01 EPM CWH n 11.12 11.24 91 11 -1.08% 0.36%
2018-10-03 CCOI SQZ y 55.77 56.03 80 55.03 -1.33% -0.47%
2018-10-04 MSG SQZ y 308.76 309.47 86 300.62 -2.64% -2.97%
2018-10-02 GLMD SQZ y 13.73 14.47 95 13.1 -4.59% 3.06%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 05, 2018
Symbol BO
Company Industry RS
ABMD 442.94 848,600 ABIOMED - Inc. - Common Stock Medical Appliances & Equipment 96 415.71
GPRK 20.45 370,029 Geopark Ltd Common Shares Oil & Gas Drilling & Exploration 96 19.59
WLL 53.13 3,573,580 Whiting Petroleum Corporation Common Stock Oil & Gas Drilling & Exploration 94 48.26
ADUS 71.45 237,018 Addus HomeCare Corporation - Common Stock Home Health Care 94 65.05
XOXO 34.63 468,950 XO Group - Inc. Common Stock Specialty Retail - Other 94 34.51
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 26447.1
-0.04% 6.99% Up
NASDAQ 7788.45
-3.21% 12.82% Up
S&P 500 2885.57
-0.97% 7.93% 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
1.3 %
NASDAQ Composite
12.63 %
NASDAQ Composite
12.82 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Manufactured Housing
Auto Parts Stores
Auto Parts Stores
Manufactured Housing
Most Improved Industry (by change in technical rank2)
Foreign Utilities
Auto Parts Wholesale
Cleaning Products
Basic Materials Wholesale
Charts of each industry rank and performance over 12 months are available on the site


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