Breakoutwatch Weekly Summary 12/07/19

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Weekly Commentary
Good Week for Breakouts. Strategy Suggestions: Real Time Alerts Tutorial

The NASDAQ gave up just 0.1% this week after being saved by a stronger than expected jobs report on Friday. The week began badly when Trump suggested a trade deal with China could wait until after the 2020 election and the ISM Manufacturing index for November was weaker than expected. The decline was arrested on Wednesday when the good old chestnut of trade talks nearing a deal was trotted out and the indexes started to recover.

The recovery which began on Tuesday delivered 14 breakouts by Friday's close. The cup and handle pattern watchlist delivered 8breakouts averaging 4.7% and the Volatility Squeeze pattern delivered 6 breakouts averaging 4.2%.

Friday's action gave me an opportunity to demonstrate how our real time alerts page on the site can be used to time an entry into a position. See Strategy Suggestions below.


New Features this Week
Obtain a T/A Chart from an intraday chart

When clicking on a symbol in our Alerts Issued Today page an intraday chart is shown with price and volume data. There is now a button that will show a 3-month T/A chart which puts the intraday chart into perspective. I've produced a tutorial on how to benefit from this below.
Strategy Suggestions
Our latest strategy suggestions are here.

Tutorial: How to Use Intraday Chart to time an entry.

The images below show how to time your entry from watching the Alerts Issued Today page. (These images were captured after the close of business. In real time you would see the intraday chart as at the time you looked).

1. Cup and Handle Example

On the Alerts page, the smiley under the 'Current Status column indicates where the stock is situated following breakout. The first three smikeys shown below indicate ADUS is still above its breakout price. CRAI has fallen below its breakout price, and CMLS is both above its breakout price and above the breakout volume requirement. When you see that happy smiley face, its time to click on the symbol and an intraday chart will pop up. The actual time at which the happy smiley appears is shown by the vertical line I imposed on the chart.

We see that indeed the stock is above its breakout price and the 150% volume requirement is met. Now it's time to click on the T/A Daily chart button.

The daily chart shows that prior to today, the stock has been ascending the right side of the cup quite rapidly before profit taking set the pivot and the stock formed a handle. The rapid rise shows a lot of buyer interest - which could continue after the breakout, and the intraday chart shows the breakout could be a strong one. This could therefor be an excellenttime to make an entry.
CMLS Intraday and T/A
2. Volatility Squeeze Breakout

Let's look at an example of a Volatility Squeeze example. As above we open the intraday chart when we see the happy Smiley Face. In this case the volume requirement is only 100% of the 50 day average and the verticle line I superimposed shows the point at which the smiley turned happy. Looking at the T/A Chart shows that there was strong buyer interest in the days prior to breakout which may indicate that the breakout will continue.

BFE Breakout

These two example indicate how you can use the Alerts page, smiley indicators, intraday and T/A charts to assist your buying decision. There are no guarantees however that trades made following these suggestions will ultimately be profitable. To limit you risk after entering a trade I suggest you use our Trailing Stop Calculator to set a trailing stop.
Breakouts Summary by Watchlist for Week Beginning 12/02/19
List Breakouts Avg. Gain
CWH 8 4.69
SQZ 6 4.19
Breakouts Detail for Week Beginning 12/02/19
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2019-12-06 ZUMZ SQZ y 30.57 35.47 91 35.47 16.03% 16.72%
2019-12-05 POWL CWH n 42.88 45.43 85 49.04 14.37% 14.55%
2019-12-06 EPZM CWH n 17.00 18.22 94 18.22 7.18% 8.18%
2019-12-06 IMMU CWH n 19.52 20.59 94 20.59 5.48% 7.17%
2019-12-02 EVFM CWH n 6.55 6.86 92 6.88 5.04% 14.5%
2019-12-04 RUSHA CWH n 46.32 47.82 86 47.64 2.85% 4.53%
2019-12-02 ICAD SQZ y 7.52 7.7 95 7.71 2.53% 5.45%
2019-12-06 NFE SQZ y 16.24 16.62 80 16.62 2.34% 3.53%
2019-12-04 CATS SQZ y 17.02 17.29 91 17.36 2% 3.88%
2019-12-06 FTDR SQZ y 45.33 45.97 86 45.97 1.41% 2.01%
2019-12-03 IOVA CWH n 24.38 24.5 97 24.72 1.39% 2.54%
2019-12-06 PSMT SQZ y 74.07 74.7 88 74.7 0.85% 1.16%
2019-12-04 TTMI CWH n 13.71 13.72 88 13.8 0.66% 1.17%
2019-12-06 CMLS CWH n 17.68 17.77 85 17.77 0.51% 0.96%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday December 06, 2019
Symbol BO
Company Industry RS
AFIN 15.18 895,182 American Finance Trust - Inc. REIT - Diversified 90 14.42
ASUR 9.42 646,629 Asure Software Inc Software - Application 89 8.13
NUAN 18.19 3,917,754 Nuance Communications - Inc. Software - Application 85 17.89
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 28015.1
-0.13% 20.09% Up
NASDAQ 8656.53
-0.1% 30.46% Up
S&P 500 3145.91
0.16% 25.49% 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
S&P 500
0.16 %
NASDAQ Composite
6.83 %
NASDAQ Composite
11.81 %
NASDAQ Composite
30.46 %
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Electric Utilities
Electric Utilities
Water Utilities
Water Utilities
Most Improved Industry (by change in technical rank2)
Computer Peripherals
Textile Industrial
Drug Delivery
Drug Delivery
Charts of each industry rank and performance over 12 months are available on the site


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