Weekly Summary for 10/06/2019

Breakoutwatch Weekly Summary 10/05/19

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Weekly Commentary
Trend Indicators Turn Negative; Revised Industry Classification

Our trend indicators turned negative for the three major indexes on Monday. The indicator for the Dow Jones Indus trials recovered on Friday following a positive jobs report but the NASDAQ and S&P 500 remain negative. Last week I showed that the NASDAQ had completed a bearish Double Top pattern and the chart still shows that the bearish signal is still in effect.

Heavy selling for all major indexes on Tuesday and Wednesday followed the ISM manufacturing index falling to its lowest level since June 2009. Thursday started with a continuing decline leading to an oversold position but the NASDAQ found support at the 200 day moving average level and the index closed higher following short sale covering. Friday's gap up followed the positive employment report but volume levels were well below the 50 day average showing residual fear that a correction is looming.

Note that the best performing industries are Utilities indicating that there is a move towards defensive stock positions.

The negative trend for the week inevitably meant that there were very few breakouts.

New Features this Week

No new features this week, however I have reviewed the industry data I provide and found a number of anomalies. Among these were:
  •  Industries with no components were rated as best performing in industry rankings. Now only industries with at least 5 components are considered in the rankings.
  • Industry categories are refreshed from Yahoo Finance and I discovered that they had changed their industry classification scheme with the result that our classification was no longer being refreshed correctly. I am in the process of re-aligning the classification schemes and consequently the industry browser is temporarily unavailable.
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 09/30/19
List Breakouts Avg. Gain
CWH 3 0.9
SQZ 1 -0.09
Breakouts Detail for Week Beginning 09/30/19
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2019-10-04 FORM CWH n 19.74 20.34 93 20.34 3.04% 3.14%
2019-10-04 HUBG CWH y 47.40 47.52 83 47.52 0.25% 1.58%
2019-09-30 ZF SQZ y 11.14 47.52 86 11.13 -0.09% -0.09%
2019-09-30 NHS CWH y 12.13 0 80 12.06 -0.58% -0.58%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 04, 2019
Symbol BO
Company Industry RS
ALDR 18.95 4,300,284 Alder BioPharmaceuticals - Inc. Biotechnology 97 18.90
AKTS 8.77 670,330 Akoustis Technologies - Inc. Communication Equipment 92 7.95
CZR 12.03 16,776,519 Caesars Entertainment Corporation Resorts & Casinos 88 11.66
PLAB 11.45 690,910 Photronics - Inc. Semiconductor Equipment & Materials 87 10.85
PSDO 16.96 1,925,121 Presidio - Inc. Information Technology 87 16.79
CORT 15.03 1,117,971 Corcept Therapeutics Incorporated Biotechnology 86 14.19
VRRM 15.10 1,340,434 Verra Mobility Corporation - Class A Common Stock Security & Protection Services 85 13.97
WSC 16.89 722,250 WillScot Corporation Rental & Leasing Services 85 15.57
SONO 15.41 2,407,084 Sonos - Inc. Electronic Equipment 84 13.39
TTMI 12.63 1,614,963 TTM Technologies - Inc. Printed Circuit Boards 81 12.29
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 26573.7
-0.92% 13.92% Up
NASDAQ 7982.47
0.54% 20.3% Down
S&P 500 2952.01
-0.33% 17.76% 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 S&P 500
-1.28 %
S&P 500
2.05 %
NASDAQ Composite
20.3 %
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Electric Utilities
Diversified Utilities
Water Utilities
Insurance Brokers
Most Improved Industry (by change in technical rank2)
Medical Practitioners
Consumer Services
Personal Computers
Drug Delivery
Charts of each industry rank and performance over 12 months are available on the site


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