Breakoutwatch Weekly Summary 05/30/20
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| Market Conditions Favor Cup and
Handle Pattern and Volatility Squeeze Breakouts The DJI outperformed this week with a gain of 3.7% while the NASDAQ was the laggard with a gain of 1.8%. The S&P 500 gained 3.0%. However, the DJI has yet to crest its 200 day moving average while the NASDAQ is well above that level and the S&P 500 did so on the Tuesday. Some uncertainty was generated on Friday when President Trump announced the elimination of special treatment for Hong Kong. However, he did not announce new tariffs or that the trade deal with China was in jeopardy. It is unlikely he will take actions that could threaten the economic recovery, or the rise in the markets which he sees as critical to his re-election prospects.  Cup and Handle Pattern breakouts
were in the majority this week with 10 breakouts delivering an
average 4% gain, while Volatility Squeeze breakouts were close
behind with 8 breakouts and an average 3% gain.
That cup and handle pattern stocks
would be in the majority is evident from the NASDAQ chart as we
see a succession of new pivot points since the March low
followed by a short pullback creating a handle pattern. At the
same time, each pullback provides a short reduction in
volatility setting up a volatility squeeze for some stocks. As
of Friday, there were 135 stocks in a cup and handle pattern,
and 49 in a volatility squeeze pattern. In some cases, this sets
up both patterns simultaneously (see below).
|
One example of a
stock that is simultaneously in a cup and handle pattern and a
volatility squeeze is The Kroger Company (KR). While I am not
promoting KR as an immediate buy, the constructive action in the
handle, combined with the squeeze and increasing momentum
suggest it is one to watch in the coming days. |
| No new features this week |
|
Our latest strategy
suggestions are here.
|
| List | Breakouts | Avg. Gain |
|---|---|---|
| CWH | 10 | 4.03 |
| SQZ | 8 | 3.05 |
| HTF | 0 | |
| HSB | 0 | |
| DB | 0 |
| Brkout Date | Symbol | Base | Squeeze | Brkout Price | Brkout Day Close | RS Rank* | Last Close | Current % off BOP | Gain at Intraday High |
|---|---|---|---|---|---|---|---|---|---|
| 2020-05-28 | SLP | CWH | n | 43.63 | 48.43 | 86 | 50.67 | 16.14% | 20.86% |
| 2020-05-29 | GRVY | CWH | n | 46.30 | 50.7 | 86 | 50.7 | 9.5% | 9.5% |
| 2020-05-26 | JOUT | SQZ | y | 71.98 | 76.06 | 82 | 77.61 | 7.82% | 11% |
| 2020-05-27 | TSCO | CWH | n | 113.89 | 119.76 | 85 | 122.02 | 7.14% | 7.58% |
| 2020-05-26 | BMRN | CWH | y | 100.75 | 103.74 | 86 | 106.55 | 5.76% | 8.69% |
| 2020-05-28 | ATXI | SQZ | y | 10.86 | 68.36 | 96 | 11.47 | 5.62% | 8.93% |
| 2020-05-29 | KEYS | SQZ | y | 103.65 | 108.13 | 83 | 108.13 | 4.32% | 4.82% |
| 2020-05-26 | TENB | CWH | n | 30.18 | 30.28 | 84 | 31.27 | 3.61% | 3.88% |
| 2020-05-29 | AKAM | SQZ | y | 102.92 | 105.8 | 87 | 105.8 | 2.8% | 3.25% |
| 2020-05-29 | LBRDK | SQZ | y | 133.05 | 136.62 | 86 | 136.62 | 2.68% | 3.3% |
| 2020-05-29 | SNAP | CWH | y | 18.46 | 18.94 | 91 | 18.94 | 2.6% | 2.98% |
| 2020-05-29 | VRSK | SQZ | y | 168.35 | 172.68 | 82 | 172.68 | 2.57% | 2.93% |
| 2020-05-28 | ECL | CWH | n | 208.08 | 211.41 | 80 | 212.58 | 2.16% | 4.24% |
| 2020-05-26 | OSPN | CWH | n | 19.95 | 20.11 | 88 | 20.32 | 1.85% | 4.76% |
| 2020-05-29 | CDZI | SQZ | y | 11.04 | 11.07 | 80 | 11.07 | 0.27% | 2.17% |
| 2020-05-26 | XPEL | CWH | n | 14.90 | 15.5 | 85 | 14.93 | 0.2% | 8.66% |
| 2020-05-26 | PRNB | SQZ | y | 65.01 | 68.36 | 95 | 63.89 | -1.72% | 14.8% |
| 2020-05-26 | VHC | CWH | n | 7.28 | 7.3 | 94 | 6.65 | -8.65% | 7.01% |
| *RS Rank on day before breakout. | |||||||||
| Symbol | BO Price |
BO Vol. |
Company | Industry | RS Rank |
Last Close |
|---|---|---|---|---|---|---|
| APTO | 9.00 | 1,315,326 | Aptose Biosciences - Inc. - Common Shares | Biotechnology | 98 | 7.38 |
| AUPH | 18.72 | 2,013,338 | Aurinia Pharmaceuticals Inc - Common Shares | Biotechnology | 97 | 15.87 |
| BLDP | 11.11 | 3,334,070 | Ballard Power Systems - Inc. - Common Shares | Specialty Industrial Machinery | 97 | 10.79 |
| OMI | 8.21 | 4,717,856 | Owens & Minor - Inc. Common Stock | Medical Distribution | 94 | 7.93 |
| EQX | 9.47 | 3,140,840 | Equinox Gold Corp. Common Shares | Gold | 91 | 9.22 |
| GCAP | 6.72 | 909,150 | GAIN Capital Holdings - Inc. Common Stock | Capital Markets | 91 | 6.28 |
| CORT | 16.72 | 1,517,229 | Corcept Therapeutics Incorporated - Common Stock | Biotechnology | 88 | 15.14 |
| FIT | 6.96 | 10,155,159 | Fitbit - Inc. Class A Common Stock | Scientific & Technical Instruments | 88 | 6.34 |
| RMBS | 16.08 | 1,325,475 | Rambus - Inc. - Common Stock | Semiconductors | 86 | 15.54 |
| TAK | 19.55 | 2,121,264 | Takeda Pharmaceutical Company Limited American Dep | Drug Manufacturers - Specialty & Generic | 80 | 19.50 |
| These stocks meet our suggested screening factors
for our Cup and Handle Chart Pattern watchlist. See Revised Rules for Trading Cup and Handle Breakouts |
||||||
| Index | Value | Change Week | Change YTD | Trend1 |
|---|---|---|---|---|
| Dow | 25383.1 |
3.75% | -11.06% | Up |
| NASDAQ | 9489.87 |
1.77% | 5.76% | Up |
| S&P 500 | 3044.31 |
3.01% | -5.77% | 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. |
||||
| 1 Week | 13 Weeks | 26 Weeks | Year-to-Date |
|---|---|---|---|
| Dow Jones |
NASDAQ Composite 10.77 |
NASDAQ Composite 9.51 |
NASDAQ Composite 5.76 |
| 1 Week | 3 Weeks | 13 Weeks | 26 Weeks |
|---|---|---|---|
| Grocery Stores |
Shell Companies |
| Infrastructure Operations 22 |
Recreational Vehicles 68 |
Uranium 119 |
Gold 192 |
| Charts of each industry rank and performance over 12 months are available on the site | |||
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