Breakoutwatch Weekly Summary 12/14/19

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Weekly Commentary
New Record Highs. TGTX Double Breakout Tutorial.

For a summary of the major events driving this weeks market action see the Weekly Wrap.

The NASDAQ Composite set a new intraday high on Thursday on above average volume and finished the week 0.9% higher, outperforming the S&P 500 (0.7%) and the DJI (0.4%).
The number of breakouts remained steady at 13 with gains being a modest average 1% for cup and handle breakouts and a loss of 0.6% for Volatility Squeeze breakouts. Anyone who jumped on the squeeze breakout of TGTX on Tuesday was further rewarded on Friday with another breakout after the stock had formed a 2 day handle and qualified as a cup and handle pattern. See below for an analysis of the double breakout.
New Features this Week

The intraday charts accessed from the Alerts page now shows the intraday volume level needed for a confirmed breakout.
TGTX Intraday
Strategy Suggestions
Our latest strategy suggestions are here.

TGTX Double Breakout

TGTX entered a volatility squeeze on 11/27 when the Keltner Channel fell inside the Bollinger Channel. However, because we require positive and accelerating momentum before entering a stock onto our Volatility Squeeze watchlist, we did not put it onto the SQZ watchlist until 12/09 when volume spiked to 6 times the 50 day average and momentum became positive. The next day (12/10) the squeeze came off and  TGTX made a Volatility Squeeze breakout. (To understand how to read a chart for stocks in a volatility squeeze see here)

In making the breakout, the closing price set a pivot on a 6 month cup and handle pattern and appeared on the CWH watchlist on 12/12 having set a 2 day handle. Note that the volume on 12/12 was again higher than the 50 day average, indicating there were many interested buyers. The stock then broke out the next day, 12/13/19.

Note that in both cases the volume prior to breakout was indicative that a breakout could occur.

Breakouts Summary by Watchlist for Week Beginning 12/09/19
List Breakouts Avg. Gain
CWH 8 1.02
SQZ 5 -0.6
Breakouts Detail for Week Beginning 12/09/19
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2019-12-10 TGTX SQZ y 9.29 9.42 95 10.1 8.72% 16.09%
2019-12-13 QURE CWH n 70.00 73.97 95 73.97 5.67% 5.71%
2019-12-12 MU SQZ y 49.27 50.97 84 51.2 3.92% 6.19%
2019-12-13 TGTX CWH n 9.78 10.1 95 10.1 3.27% 10.28%
2019-12-13 YNDX CWH n 42.25 43.25 81 43.25 2.37% 2.37%
2019-12-12 ASYS CWH n 6.38 6.41 82 6.53 2.35% 3.37%
2019-12-13 NGM CWH n 18.49 18.67 81 18.67 0.97% 7.19%
2019-12-09 VCTR CWH n 20.95 21 94 20.7 -1.19% 5.97%
2019-12-11 ASPU CWH n 7.44 7.5 92 7.28 -2.15% 7.53%
2019-12-12 HAIN SQZ y 25.54 25.79 84 24.965 -2.25% 1.45%
2019-12-12 AVGO CWH y 325.67 327.8 80 315.42 -3.15% 1.38%
2019-12-09 VRA SQZ y 11.63 12.11 80 11.08 -4.73% 9.29%
2019-12-11 ARCT SQZ y 10.84 10.85 97 9.9 -8.67% 5.26%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday December 13, 2019
Symbol BO
Company Industry RS
GLDD 11.94 602,024 Great Lakes Dredge & Dock Corporation Engineering & Construction 91 11.63
WSC 18.30 728,740 WillScot Corporation Rental & Leasing Services 90 17.22
SSRM 17.25 1,363,928 SSR Mining Inc. Gold 88 16.84
NAVI 14.64 2,417,478 Navient Corporation Credit Services 85 14.13
RCM 13.01 1,672,278 R1 RCM Inc. Health Information Services 85 12.13
LOCO 16.65 629,967 El Pollo Loco Holdings - Inc. Restaurants 84 15.35
GPRE 15.63 868,785 Green Plains - Inc. Specialty Chemicals 82 15.17
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 28135.4
0.43% 20.61% Up
NASDAQ 8734.88
0.91% 31.64% Up
S&P 500 3168.8
0.73% 26.41% 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
NASDAQ Composite
0.91 %
NASDAQ Composite
6.83 %
NASDAQ Composite
12.03 %
NASDAQ Composite
31.64 %
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Electric Utilities
Electric Utilities
Water Utilities
Auto Dealerships
Most Improved Industry (by change in technical rank2)
Technical & System Software
Gas Utilities
Electronics Stores
Publishing - Books
Charts of each industry rank and performance over 12 months are available on the site


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