Breakoutwatch Weekly Summary 04/18/20

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Weekly Commentary
Trend Signals are Positive for Major Indexes Our NASDAQ Comp., DJI and S&P 500 trend signals turned positive this week. The NASDAQ is in the strongest position with the index being above both its 200 day and 50 day moving averages, but neither the DJI or S&P are in such a strong position. The strength of the rally is really quite surprising considering the state of the economy, and may represent an overly optimistic view that earnings will soon return to pre-covid levels. Consider this summary from briefing.com of the economic news this week: The nation's largest banks, including JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC), recorded huge increases in their provisions for credit losses as they readied themselves for a possible wave of charge-offs. The May contract for WTI crude futures plummeted 21.8% to $18.14/bbl. Retail sales declined 8.7% m/m in March, which is the largest drop on record. Industrial production declined 5.4% m/m in March, which was the worst downturn since 1946. The Empire State Manufacturing Survey plummeted to -78.2, which is its lowest level on record. The Philadelphia Fed Index dropped to -56.6, which was its lowest reading since July 1980. The NAHB Housing Market Index, which is a gauge of homebuilder sentiment, plunged to 30.0 for April (a record low) from 72.0 in March. Housing starts declined 22.3% m/m in March to a seasonally adjusted annual rate of 1.216 million units, marking the biggest drop since March 1984. The Leading Economic Index for March declined 6.7% m/m, which was the worst decline in the 60-year history of the index. The Paycheck Protection Program reached its $350 billion limit, leaving millions of small business owners in need of support. Initial claims for the week ending April 11 totaled 5.245 million, bringing the four-week total for initial claims to 22.034 million. Continuing claims for the week ending April 4 hit a record 11.976 million. As earnings season proceeds, it is likely that forward guidance will temper some of the market's optimism, so I am personally rather cautious and expect a correction before too long.

Chart of the Week
I applied my preferred filter (above average volume and under accumulation) to our cup and handle watchlist and found 4 stocks that met the criteria. I then used the Chart Browser to examine the charts of each and found the chart for NIC to be the most interesting. NIC provides digital services to Federal, State and local governments and was recently highlighted by IBD as a coronavirus stock to watch.

New Features this Week
No new features this week

Strategy Suggestions
Our latest strategy suggestions are here.

Breakouts Summary by Watchlist for Week Beginning 04/13/20
List	Breakouts	Avg. Gain
CWH	4	2.35
SQZ	4	-0.97
HTF		0
HSB		0
DB		0

Breakouts Detail for Week Beginning 04/13/20
Brkout Date	Symbol	Base	Squeeze	Brkout Price	Brkout Day Close	RS Rank^*	Last Close	Current % off BOP	Gain at Intraday High
2020-04-13	FENC	SQZ	y	6.47	7.23	95	6.99	8.04%	23.49%
2020-04-14	QTS	CWH	n	61.33	63.51	94	64.13	4.57%	6.24%
2020-04-16	WERN	CWH	n	39.23	39.35	91	40.11	2.24%	3.21%
2020-04-13	CTSO	CWH	n	7.73	8	96	7.84	1.42%	21.6%
2020-04-16	SLGN	CWH	n	32.66	33.4	89	33.04	1.16%	3.97%
2020-04-15	ARCE	SQZ	y	46.12	47.39	88	45.89	-0.5%	5.51%
2020-04-15	LAKE	SQZ	y	16.51	17.2	96	16.12	-2.36%	9.02%
2020-04-14	STSA	SQZ	y	19.29	20.04	96	17.54	-9.07%	8.86%
^*RS Rank on day before breakout.

Top Rated Cup and Handle Stocks as of Friday April 17, 2020
Symbol	BO Price	BO Vol.	Company	Industry	RS Rank	Last Close
FIT	6.80	12,154,641	Fitbit - Inc. Class A Common Stock	Scientific & Technical Instruments	95	6.67
EGO	9.51	7,119,194	Eldorado Gold Corporation Ordinary Shares	Gold	94	8.31
GFI	7.43	15,220,576	Gold Fields Limited American Depositary Shares	Gold	93	6.35
AGI	7.60	6,075,838	Alamos Gold Inc. Class A Common Shares	Gold	92	6.38
AQN	14.53	1,704,741	Algonquin Power & Utilities Corp. Common Shares	Utilities - Renewable	89	14.10
TEVA	10.66	35,243,912	Teva Pharmaceutical Industries Limited American De	Drug Manufacturers - Specialty & Generic	89	10.27
AKTS	8.11	994,653	Akoustis Technologies - Inc. - Common Stock	Communication Equipment	86	7.56
EQX	8.05	1,906,204	Equinox Gold Corp. Common Shares	Gold	85	7.41
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	24242.5	2.21%	-15.05%	Up
NASDAQ	8650.14	6.09%	-3.59%	Up
S&P 500	2874.56	3.04%	-11.03%	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	NASDAQ Composite -7.87	NASDAQ Composite 6.93	NASDAQ Composite -3.59

Best Performing Industry
1 Week	3 Weeks	13 Weeks	26 Weeks
Shell Companies	Shell Companies

Most Improved Industry (by change in technical rank²)
Other Precious Metals & Mining 82	Gold 110	Grocery Stores 198	Gold 187
Charts of each industry rank and performance over 12 months are available on the site

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