Breakoutwatch Weekly Summary 06/13/20

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Weekly Commentary
Number of Breakouts Falls as Markets Consolidate

The NASDAQ slipped 2.3% this week after reaching a new all time high on Wednesday. The new high was followed by a sharp sell-off on Thursday with the NASDAQ dropping 9%. Friday saw a modest recovery of just 1%. The reason for Thursday's rout was unclear with some analysts blaming the Fed for Wednesday's announcement that full employment wouldn't return until 2022, while others blamed the accelerating clovid-19 cases in several states. What could not be doubted is that the markets were over extended and it was time for a bout of consolidation.

Friday's modest recovery came on less than average volume and could perhaps be attributed to the current 'buy the dip' mentality. Realistically, a fall to the 9250 support level is possible.
There was only one breakout from a cup and handle pattern this week while 5 from a Volatility Squeeze pattern were all under water at Friday's close.
Chart of the Week
This week's chart is taken from Friday's Cup and Handle watchlist. It is GlobalScape Inc (GSB). This stock broke out of a Volatility Squeeze pattern on June 3 although volume didn't meet our 1.5 times ADV requirement to be recognized officially as a breakout. It then set a new pivot on Monday of this week and has since formed a classic handle with a strong move up on Friday on more than 2 times ADV. While not recommending GSB as a buy, I think it is worth monitoring on Monday.
GSB Chart

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 06/08/20
List Breakouts Avg. Gain
CWH 1 0.28
SQZ 5 -0.89
Breakouts Detail for Week Beginning 06/08/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-06-08 DL SQZ y 7.23 8.22 82 8.61 19.09% 19.92%
2020-06-08 SRPT CWH n 158.40 159.68 90 158.85 0.28% 2.55%
2020-06-08 SPRO SQZ y 12.45 13.32 86 11.95 -4.02% 9.8%
2020-06-08 MIRM SQZ y 18.51 18.96 94 17.65 -4.65% 4.32%
2020-06-09 NLTX SQZ y 13.70 14.95 99 12.8 -6.57% 12.04%
2020-06-08 PSN SQZ y 42.06 42.71 81 38.57 -8.3% 2.09%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday June 12, 2020
Symbol BO
Company Industry RS
BLDP 14.63 3,255,255 Ballard Power Systems - Inc. - Common Shares Specialty Industrial Machinery 97 13.39
BCLI 9.63 696,729 Brainstorm Cell Therapeutics Inc. - Common Stock Biotechnology 96 8.47
CBB 14.98 1,198,368 Cincinnati Bell Inc. Common Stock Telecom Services 95 14.75
OCUL 8.01 1,332,458 Ocular Therapeutix - Inc. - Common Stock Biotechnology 95 7.45
OMI 9.14 3,660,226 Owens & Minor - Inc. Common Stock Medical Distribution 94 7.29
AUPH 18.72 1,765,004 Aurinia Pharmaceuticals Inc - Common Shares Biotechnology 93 15.51
SYRS 10.76 525,398 Syros Pharmaceuticals - Inc. - common stock Biotechnology 93 8.85
VIPS 18.34 10,437,603 Vipshop Holdings Limited American Depositary Share Internet Retail 92 17.72
EQT 16.90 12,354,471 EQT Corporation Common Stock Oil & Gas E&P 92 14.81
DB 10.40 9,595,688 Deutsche Bank AG Common Stock Banks - Regional 89 9.39
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 25605.5
-5.55% -10.28% Up
NASDAQ 9588.81
-2.3% 6.87% Up
S&P 500 3041.31
-4.78% -5.86% 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
Shell Companies

Most Improved Industry (by change in technical rank2)
Education & Training Services
Charts of each industry rank and performance over 12 months are available on the site


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