Breakoutwatch Weekly Summary 10/03/20
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|Major Indexes Positive for the Week
and Breakouts Average 5% Gain
The major indexes all moved higher this week and our market trend signals may have turned positive were it not for Friday's declines following news that the President had tested positive for Covid19.
Briefing.com summarized the gains as follows:
"Prior to Friday, the market had already established the week's gains, largely on technically-oriented trading activity in oversold stocks. Early in the week, cyclical stocks benefited from M&A activity, better-than-expected economic data ..., analyst upgrades, and stimulus optimism. "
The number of breakouts this week surged to 28 with an average gain of 5%. Top performer of the week was Lithium Americas Corp. (LAC) which broke out from a High Tight Flag (HTF) formation to gain 31%. Most notable about this breakout, apart from the huge gain is that the handle fell 40% from its pivot before the breakout. Theoretically this shouldn't have appeared on or watchlist as our methodology sets a limit of 20% drop in the handle. There was a bug in the code which allowed it onto the watchlist. See New Features below for a further comment.
|Until Friday's all
round pull back, ADPT was climbing the right side of a short
handle and Thursday's volume was above average indicating
traders are viewing ADPT favorably. Of course, we don't know how
the market will continue to react to the current uncertainty,
but ADPT is one to watch.
|The breakout of LAC from a deep HTF
handle is the second situation like this that I have seen
lately, Zoom Communications (ZM) was another. Consequently I am
changing the methodology to allow an HTF handle to fall 50% and
still qualify for the watchlist. However, I have added a comment
on the chart for HTF patterns noting the droop % so subscribers
can determine for them selves what amount of decline in the
handle to accept.
Another problem with the HTF methodology was that it allowed takeover candidates to appear on the watchlist. To eliminate these I've implemented a minimum handle droop of 5%.
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.|
|BLNK||11.55||12,171,759||Blink Charging Co.||Specialty Retail||99||10.86|
|SURF||7.75||1,281,456||Surface Oncology - Inc.||Biotechnology||98||6.87|
|SOGO||8.90||4,852,476||Sogou Inc.||Internet Content & Information||96||8.89|
|BE||18.72||7,344,390||Bloom Energy Corporation Class A||Electrical Equipment & Parts||94||15.97|
|ALDX||7.79||1,080,870||Aldeyra Therapeutics - Inc.||Biotechnology||91||6.97|
|MOBL||7.06||3,074,076||MobileIron - Inc.||Software - Application||88||7.05|
|NG||12.10||3,054,144||Novagold Resources Inc.||Gold||83||11.10|
|ATEC||7.28||554,631||Alphatec Holdings - Inc.||Medical Devices||83||6.51|
|SCPL||16.98||1,276,809||SciPlay Corporation||Electronic Gaming & Multimedia||83||15.70|
|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|
|Charts of each industry rank and performance over 12 months are available on the site|
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