Breakoutwatch Weekly Summary 09/12/20

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Weekly Commentary
Market Signals Turn Down for the Three Major Indexes

Our market signals for the three major indexes all turned down on Friday. The NASDAQ closed below its 50 day moving average while the DJI and S&P 500 remain above that level, for now. This change in trends indicates that extra caution is necessary when opening long positions. The NASDAQ has slipped 10% since its September 2 high putting it in 'correction' territory. This may not be a bad thing, as the index was overextended, and a period of consolidation was overdue.

While a move down was anticipated, it may have been influenced by the Senate failing to pass its $300 billion coronavirus relief bill, which could have added some stimulus to the economy and the pause in the AstraZeneca (AZN) vaccine trial in the UK,

Chart of the Week
With the market trends turning negative, readers may be looking for opportunities to go short. Fastly inc. is on our Head and Shoulders Top (HST) short position list and fell 9% on Friday. Read why here. The stock is close to completing the HST pattern when it falls to $73.9 in which case the target price becomes $30. See our HST methodology.

FSLY 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 09/07/20
List Breakouts Avg. Gain
CWH 2 6.32
SQZ 7 4.01
HTF 2 3.09
Breakouts Detail for Week Beginning 09/07/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-09-08 WKHS CWH n 21.00 21.38 99 23.69 12.81% 16.62%
2020-09-08 SPAQ SQZ y 13.86 14.2 88 15.18 9.52% 16.67%
2020-09-09 MPX SQZ y 16.47 17.91 83 17.89 8.62% 13.24%
2020-09-08 NFE HTF y 29.38 31.89 95 31.75 8.07% 32.91%
2020-09-09 CRTX SQZ y 44.47 47.25 88 47.58 6.99% 10.95%
2020-09-11 SNAP SQZ y 23.32 24.19 90 24.19 3.73% 4.71%
2020-09-10 FRG SQZ y 25.64 26.13 87 25.87 0.9% 6.01%
2020-09-10 CRTX SQZ y 47.26 48.38 88 47.58 0.68% 4.4%
2020-09-09 LCA CWH n 17.77 18.12 94 17.74 -0.17% 8.5%
2020-09-10 OESX HTF n 7.09 7.34 95 6.955 -1.9% 7.05%
2020-09-10 BYND SQZ y 138.18 143.04 82 134.88 -2.39% 8.24%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday September 11, 2020
Symbol BO
Company Industry RS
SURF 7.44 1,245,098 Surface Oncology - Inc. Biotechnology 98 6.60
CBB 15.14 610,276 Cinci Telecom Services 89 15.07
EQT 17.97 6,290,283 EQT Corporation Oil & Gas E&P 85 14.03
TME 16.43 14,267,986 Tencent Music Entertainme Internet Content & Information 83 15.80
INSU 14.49 599,638 Insurance Acquisition Corp. Shell Companies 83 12.77
NWSA 15.46 2,683,056 News Corporation Broadcasting 82 15.06
NWS 15.55 572,638 News Corporation Broadcasting 81 15.05
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 27665.6
-1.66% -3.06% Down
NASDAQ 10853.5
-4.06% 20.96% Down
S&P 500 3340.97
-2.51% 3.41% Down
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
Dow Jones 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)
Farm Products
Other Precious Metals & Mining
Charts of each industry rank and performance over 12 months are available on the site


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