Breakoutwatch Weekly Summary 09/19/20
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|Sector Rotation out of Large Cap
Tech Creates Breakout Opportunities
The three major indexes continued their decline this week as investors continued to take profits from the large cap tech stocks and our market trend indicators continued to point downwards. The NASDAQ Composite and S&P 500 gave up 0.6% each and the DJI remained essentially flat with a loss of just 0.03%. The NASDAQ rallied earlier in the week but failed to sustain a rally above its 50 day moving average. In contrast to the large cap indexes, the Russel 2000 gained 2.5% reflecting the losing attraction of big cap tech stocks and signalling a rotation into small cap and cyclical investments.
The rotation provided an opportunity for an unusually large number of breakouts, despite the negative trend of our major trend indicators. Breakouts from a Volatility Squeeze pattern dominated the week with 15breakouts. The steep rise of the markets has created several High Tight Flag situations and we saw 6 HTF breakouts this week.
|Speaking of High
Tight Flag situations, ZOOM communications (ZM), a darling of
tech stocks since the lock down, is bucking the trend of
rotation out of tech with a 7.5% gain on Friday on 2.5 times
average volume. Zoom is building a nice shape in the handle
since profit taking in early September and could be set to move
No new features this week
Our latest strategy suggestions are here.
|Brkout Date||Symbol||Base||Squeeze||Brkout Price||Brkout Day Close||RS Rank*||Last Close||Current % off BOP||Gain at Intraday High|
|*RS Rank on day before breakout.|
|CLDX||13.43||948,033||Celldex Therapeutics - Inc.||Biotechnology||98||12.94|
|SPAQ||18.24||14,527,203||Spartan Energy Acquisition Corp Class A||Shell Companies||90||16.90|
|SILV||10.71||1,405,192||SilverCrest Metals Inc.||Other Industrial Metals & Mining||90||10.16|
|ATRA||16.30||1,249,569||Atara Biotherapeutics - Inc.||Biotechnology||86||15.87|
|SCPL||15.83||1,141,512||SciPlay Corporation||Electronic Gaming & Multimedia||84||15.40|
|DAN||15.14||1,889,664||Dana Inco||Auto Parts||81||13.16|
|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|
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|
|1 Week||3 Weeks||13 Weeks||26 Weeks|
|Beverages - Wineries & Distilleries
|Other Precious Metals & Mining
|Charts of each industry rank and performance over 12 months are available on the site|
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