Breakoutwatch Weekly Summary 05/23/20

You are receiving this email because you are or were a subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.
Newsletter Archive:

Weekly Commentary
New Feature: Alert Only if Breakout Volume Reached

The NASDAQ gained 3.4% this week, mostly on Monday when the the markets surged in response to a report that Moderna (MRNA) reported a Phase 1 study for its COVID-19 vaccine candidate yielded positive interim clinical results. There was also support from the Fed on Wednesday as Chairman Powell said the Fed had plenty of ammunition in reserve. Thursday brought a downturn as a further 2.4 million jobless claims were reported and Friday saw profit taking ahead of the 3 day weekend.

The NASDAQ Chart shows the index has set up its fourth cup and handle pattern since the recovery, each followed by a breakout to the upside. The outcome of this one may depend on how successful the reopening is seen in contrast to the expected resurgence of the virus outbreak, particularly in southern states. If cases and deaths mount the markets may take a more cautious view.
Successful breakouts fell to 15 this week with cup and handle pattern breakouts dominating. Average gains to Friday's close were constrained by the pullback on Thursday and Friday.
Chart of the Week
Real Page Inc. (RP) shows a strong V shaped recovery and is now in a 'high handle' formation. The handle action looks very promising with 3 days of above average volume since the handle low. While we do not recommend RP as a buy, it is certainly a stock to watch.
RP Chart
New Features this Week
Beta Test: Alert Only if Breakout Volume Reached:

Many subscribers complain that they receive too many emails. While the number can be constrained by limiting alerts to those only matching filter settings, there can still be a high volume of alerts. I am now introducing a new constraint, which is only to receive alerts when the daily volume has reached the breakout volume level.

To implement this feature, 2 changes have been introduced:

1. New Option on Alert Preferences page: specify that you want to receive alerts only if the breakout volume has been reached.

New Alert Preferences
2. You no longer set that alerts are to be limited to filter settings on the filter selection box. This is controlled by the Alert Preferences as shown above.

Filter Settings
This has required some complicated coding changes so I ask your indulgence if this does not work as expected, as testing of this feature can only be done in real time. Please let me know through the Support Forum if it does not work for you as expected.
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 05/18/20
List Breakouts Avg. Gain
CWH 10 3.4
SQZ 5 4.6
Breakouts Detail for Week Beginning 05/18/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-05-19 SPOT CWH n 163.94 175.03 87 190.17 16% 20.01%
2020-05-22 BHVN SQZ y 52.22 58.38 85 58.38 11.8% 14%
2020-05-21 KMDA CWH n 7.70 8.34 91 8.58 11.43% 26.62%
2020-05-20 KEYS SQZ y 96.01 102.92 81 102.06 6.3% 8.11%
2020-05-18 NBIX CWH n 117.60 124.41 90 124.8 6.12% 8.23%
2020-05-18 CAMT CWH n 12.25 12.57 89 12.9 5.31% 7.67%
2020-05-18 RARE SQZ y 71.30 72.59 93 73.81 3.52% 6.59%
2020-05-19 AXNX SQZ y 38.27 39.82 90 38.84 1.49% 5.57%
2020-05-21 POOL CWH y 234.76 238.35 85 238.18 1.46% 1.84%
2020-05-22 A CWH n 84.39 84.98 82 84.98 0.7% 3.89%
2020-05-22 OCUL CWH n 7.20 7.22 96 7.22 0.28% 5.28%
2020-05-18 BLK SQZ y 513.74 516.43 85 513.3 -0.09% 2.93%
2020-05-21 FG CWH y 10.64 10.65 85 10.57 -0.66% 0.28%
2020-05-19 DAO CWH n 25.20 26.37 92 24.48 -2.86% 15.36%
2020-05-19 SIMO CWH y 47.35 49.49 86 45.56 -3.78% 10.79%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday May 22, 2020
Symbol BO
Company Industry RS
APT 17.00 6,305,710 Alpha Pro Tech - Ltd. Common Stock Building Products & Equipment 99 13.22
APTO 9.00 1,393,854 Aptose Biosciences - Inc. - Common Shares Biotechnology 98 7.62
AUPH 18.72 2,135,661 Aurinia Pharmaceuticals Inc - Common Shares Biotechnology 97 16.24
GCAP 6.72 913,302 GAIN Capital Holdings - Inc. Common Stock Capital Markets 96 6.34
ARDX 8.17 1,158,700 Ardelyx - Inc. - Common Stock Biotechnology 96 7.86
VHC 7.28 1,047,350 VirnetX Holding Corp Common Stock Software - Infrastructure 94 7.19
IOTS 12.22 931,384 Adesto Technologies Corporation - Common Stock Semiconductors 91 11.99
FIT 6.96 10,655,826 Fitbit - Inc. Class A Common Stock Scientific & Technical Instruments 90 6.43
SNAP 18.46 49,118,724 Snap Inc. Class A Common Stock Internet Content & Information 88 17.67
FOLD 12.98 5,098,719 Amicus Therapeutics - Inc. - Common Stock Biotechnology 88 12.68
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 24465.2
3.29% -14.27% Up
NASDAQ 9324.59
3.44% 3.92% Up
S&P 500 2955.45
3.2% -8.52% 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
NASDAQ Composite
NASDAQ Composite
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Grocery Stores
Shell Companies

Most Improved Industry (by change in technical rank2)
REIT - Healthcare Facilities
Recreational Vehicles
Grocery Stores
Charts of each industry rank and performance over 12 months are available on the site


If you received this newsletter from a friend and you would like to receive it regularly please go to the site and you will then be able to register to receive the newsletter.

Copyright (c) 05/23/2020 NBIcharts, LLC dba All rights reserved.
" BreakoutWatch," the "eye" logo, and the slogan "tomorrow's breakouts today" are service marks of NBIcharts LLC. All other marks are the property of their respective owners, and are used for descriptive purposes only.

BreakoutWatch is not affiliated with Investor's Business Daily or with Mr. William O'Neil. Our site, research and analysis is supported entirely by subscription and is free from advertising.