Breakoutwatch Weekly Summary 10/27/18

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
Stay on the Sidelines until Upward Trend Returns

This was a terrible week for stocks in general and breakouts in particular. The only breakout that we counted in the black (HQOL) was in fact a takeover candidate (see explanation below). While our market trend signals continue to point down, I suggest avoiding any attempt to buy into a potential breakout on our Long Position watchlists. Even trying to short stocks on our short position watchlist in this market is dangerous as a sudden reversal can trigger short covering leaving the unwary exposed to having to cover the short for a loss.

For a potential explanation (there's not just one) of why the markets have turned south, has some suggestions.

Our algorithm can unfortunately perceive takeover candidates as a cup and handle or high tight flag pattern.  Takeover candidates are rarely going to move significantly higher so they should be ignored in our watchlists. To identify them, look at the chart pattern. A takeover candidate will appear similarly to that of HQCL shown below. The handle will be flat as the price oscillates around the takeover price.

chart HQCL
Data Feed Gremlins

Our daily data feeds experienced some glitches towards the end of this week. I'm working to ensure that these don't recur this week.

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 10/22/18
List Breakouts Avg. Gain
CWH 4 -5.78
SQZ 1 -3.63
Breakouts Detail for Week Beginning 10/22/18
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2018-10-25 HQCL CWH n 8.55 9.66 86 9.66 12.98% 12.75%
2018-10-25 RDNT CWH n 15.31 15.11 82 15.11 -1.31% -2.81%
2018-10-25 EHTH SQZ y 29.45 28.38 94 28.38 -3.63% -7.64%
2018-10-25 EPM CWH n 11.16 10.18 92 10.18 -8.78% -11.74%
2018-10-25 NDLS CWH n 12.55 9.29 96 9.285 -26.02% -26.06%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Thursday October 25, 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 24688.3
-2.97% -0.13% Down
NASDAQ 7167.21
-3.78% 3.82% Down
S&P 500 2658.69
-3.94% -0.56% 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
Dow Jones Dow Jones
-3 %
Dow Jones
1.55 %
NASDAQ Composite
3.82 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Foreign Utilities
Foreign Utilities
Auto Parts Stores
Auto Parts Stores
Most Improved Industry (by change in technical rank2)
Music & Video Stores
Music & Video Stores
Music & Video Stores
Music & Video Stores
Charts of each industry rank and performance over 12 months are available on the site


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