Breakoutwatch Weekly Summary 10/13/18

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
Hammer Doji Suggests Possible Reversal, be Patient Until at Least Monday's Close

The NASDAQ Composite fell 3.7% this week but appeared on Friday to find support at just below the 200 day average level although it closed barely under that level (7496.89 versus 7497.85). Friday's trading suggested a "Hammer Doji" candlestick pattern. "The Hammer candlestick formation is viewed as a bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends." - (OnLine Trading Concepts). The pattern is considered bullish as it implies sellers are exhausted and buyers (or short coverers) have entered the market. The reversal may be confirmed if Monday's trading continues the upward trend, so be patient until Monday's close. Our market trend signal has been negative all week and to be really conservative I suggest waiting until that signal reverses before re-entering the market.

Many explanations have been given for the downturn that accelerated on Wednesday but Barry Ritholz may have the likeliest answer here.


Needless to say, this was not a happy week for breakout stocks. Of the 4, only one, RDNT, remains barely positive.

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 10/08/18
List Breakouts Avg. Gain
CWH 3 0.5
SQZ 1 -4.96
Breakouts Detail for Week Beginning 10/08/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-10-12 RDNT CWH n 15.31 15.62 82 15.62 2.02% 0.26%
2018-10-12 XOXO CWH n 34.63 34.79 94 34.79 0.46% -0.46%
2018-10-12 EPM CWH n 11.16 11.05 92 11.05 -0.99% -2.42%
2018-10-12 EHTH SQZ y 29.45 27.99 94 27.99 -4.96% -7.64%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 12, 2018
Symbol BO
Company Industry RS
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 25340
-4.19% 2.51% Down
NASDAQ 7496.89
-3.74% 8.6% Down
S&P 500 2767.13
-4.1% 3.5% Down
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
-4.21 %
NASDAQ Composite
5.49 %
NASDAQ Composite
8.6 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Auto Parts Stores
Auto Parts Stores
Auto Parts Stores
Auto Parts Stores
Most Improved Industry (by change in technical rank2)
Foreign Utilities
Foreign Utilities
REIT - Healthcare Facilities
Charts of each industry rank and performance over 12 months are available on the site


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