Breakoutwatch Weekly Summary 12/22/18

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Weekly Commentary
Despite the market gloom, I wish all my subscribers and readers a joyous Noel and very best wishes for a healthy, happy and profitable New Year.
Our Breakdown Alerts Averaged 10% Gain as NASDAQ Drops 8.2% The NASDAQ dropped 8.2% and is now in what is considered to be a bear market having dropped 22.2% since the October 1 high. The chart below shows accelerating volume since the Fed announced a further Fed Funds rate increase of 0.25% on Wednesday. The Fed decision added to ongoing concerns over trade, the world economy, particularly China, the Government shutdown and a White House in apparent disarray. With only 2 long positions making modest gains this week, it is now appropriate to focus more on potential profits from our short sale alerts. We follow two patterns that can generate short sale returns: Head and Shoulders Top (HS) and the 50 Day Breakdown (SS). This week, these two patterns generated an average return of 9.7%. Details are presented in two tables below. The head and shoulders top pattern is recognized as one of the most reliable bearish trend reversal patterns. Our methodology for selecting stocks in this pattern is shown here. The SS list is compiled by selecting stocks that meet a specific set of criteria. These criteria are based on the guidelines offered in How to Make Money Selling Stocks Short by William O'Neil with Gil Morales, with additional requirements and constraints of our own. The methodology is detailed here.

New Features this Week
No new features this week

Strategy Suggestions
Our latest strategy suggestions are here.

Breakouts Summary by Watchlist for Week Beginning 12/17/18
List	Breakouts	Avg. Gain
CwH		0
SQZ	2	1.24
HTF		0
HSB		0
DB		0

Breakouts Detail for Week Beginning 12/17/18
Brkout Date	Symbol	Base	Squeeze	Brkout Price	Brkout Day Close	RS Rank^*	Last Close	Current % off BOP	Gain at Intraday High
2018-12-20	WMK	SQZ	y	46.33	47.17	88	47.33	2.16%	6.37%
2018-12-21	WMK	SQZ	y	47.18	47.33	91	47.33	0.32%	4.45%
^*RS Rank on day before breakout.

Breakdowns Summary by Watchlist for Week Beginning 12/17/18
List	Breakdowns	Avg. Gain
SS	9	11.9
HST	4	10.7

**BreakoutWatch Sustained Breakdowns as of 12/21/18**
B'down Date	Symbol	Base	B'down Price	B'down Day Close	B'Down Day % Gain¹	Last Close	Gain % at Last Close²	Gain % at Intraday Low³
12/21/18	ENPH	SS	5.00	4.74	5.5 %	4.74	5.5 %	10.4 %
12/21/18	BGNE	SS	128.04	124.50	2.8 %	124.5	2.8 %	5.8 %
12/21/18	CSOD	SS	50.16	46.75	7.3 %	46.75	7.3 %	8 %
12/20/18	BGNE	SS	129.82	128.04	1.4 %	124.5	4.3 %	7.2 %
12/19/18	XLNX	HS	88.12	85.22	3.4 %	81.51	8.1 %	8.6 %
12/19/18	VCEL	HS	16.95	15.97	6.1 %	14.34	18.2 %	18.3 %
12/18/18	ENBL	SS	14.67	14.19	3.4 %	13.28	10.5 %	11.4 %
12/17/18	SHOP	SS	140.17	129.66	8.1 %	122.41	14.5 %	15.4 %
12/17/18	XLNX	HS	87.63	87.18	0.5 %	81.51	7.5 %	8 %
12/17/18	TDS	HS	34.00	33.20	2.4 %	31.64	7.5 %	8.2 %
12/17/18	FRO	SS	6.70	6.10	9.8 %	5.55	20.7 %	22 %
12/17/18	GDOT	SS	79.42	78.06	1.7 %	70.69	12.3 %	12.9 %
12/17/18	ENBL	SS	14.87	14.67	1.4 %	13.28	12 %	12.9 %
12/14/18	TGNA	HS	12.69	12.47	1.8 %	10.75	18 %	19.1 %
Average gain until last close							9.7%
1 The % gain from the breakdown price to the breakout day close assuming a short at the breakdown price and a cover at the closing price 2 The % gain from the breakdown price to the latest close assuming a short at the breakdown price and a cover at the latest closing price. Stocks within 5% of the breakdown price are shown in green. 3 The % gain from the breakdown price to the lowest intraday price since breakout assuming a short at the breakdown price and a cover at the lowest intraday price (very best case scenario)..

Top Rated Cup and Handle Stocks as of Friday December 21, 2018
Symbol	BO Price	BO Vol.	Company	Industry	RS Rank	Last Close
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	22445.4	-6.87%	-9.2%	Down
NASDAQ	6333	-8.36%	-8.26%	Down
S&P 500	2416.58	-7.05%	-9.61%	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 -16.07 %	Dow Jones -8.69 %	NASDAQ Composite -8.26 %

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)
Management Services 52	Gold 113	Synthetics 205	Synthetics 211
Charts of each industry rank and performance over 12 months are available on the site

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