Breakoutwatch Weekly Summary 10/17/20

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Weekly Commentary
NASDAQ Forms Cup and Handle as Indexes Consolidate

The NASDAQ gapped up on Monday to set the high point for the week, but was in consolidation mode for the rest of the week as several disappointments weighed on the markets:
  •  The start of earnings season did not bring hoped for quantity of earnings surprises. Three of the big banks (JPMorgan Chase, Citigroup, and Goldman Sachs)issued warnings about the economy.
  • Two vaccine trials were put on hold
  • Stimulus talks continued to be stalled with little hope for a resolution before the election
  • Covid-19 cases spiked in the US and Europe
News on Friday that September retail sales rose unexpectedly lifted markets for most of the day but the NASDAQ still closed for a loss. The NASDAQ chart shows a cup and handle pattern has formed but the handle price and volume performance does not indicate a breakout is imminent.NASDAQ Chart
Declining volume failed to provide the momentum needed for successful breakouts this week with just one (GTLS)from a cup and handle pattern. Above average volume on Wednesday before Thursday's breakout was an indication that a strong breakout could be imminent.

GTLS Chart
Chart of the Week
With the NASDAQ showing a cup and handle pattern, it is perhaps logical to look at stocks in this pattern for potential future breakouts. Of those on Friday's list I've chosen BioNTech SE [BNTX] as having the best right cup performance and handle potential.

BNTX 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 10/12/20
List Breakouts Avg. Gain
CWH 1 10.22
SQZ 7 0.01
HTF
0
HSB
0
DB
0
Breakouts Detail for Week Beginning 10/12/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-10-14 GTLS CWH n 76.74 83.67 90 84.58 10.22% 11.72%
2020-10-12 EVRI SQZ y 8.55 9.38 87 9 5.26% 12.4%
2020-10-12 FUV SQZ y 6.38 6.9 95 6.63 3.92% 17.87%
2020-10-12 JD SQZ y 79.80 84.32 93 81.52 2.16% 7%
2020-10-12 BRP SQZ y 27.31 28.6 94 27.66 1.28% 10.18%
2020-10-12 ACMR SQZ y 75.46 77.79 97 75.6 0.19% 9.55%
2020-10-14 USAK SQZ y 10.80 10.95 90 10.44 -3.33% 5.37%
2020-10-15 FUV SQZ y 7.32 10.95 97 6.63 -9.43% 2.73%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 16, 2020
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
GRWG 19.34 10,316,637 GrowGeneration Corp. Home Improvement Retail 98 17.39
BLNK 11.55 9,531,459 Blink Charging Co. Specialty Retail 98 9.77
BCLI 17.95 633,723 Brainstorm Cell Therapeutics Inc. Biotechnology 96 13.86
SOGO 8.94 2,063,595 Sogou Inc. Internet Content & Information 94 8.88
BLDP 19.21 6,731,370 Ballard Power Systems - Inc. Specialty Industrial Machinery 92 17.89
IDT 11.86 540,046 IDT Corporation Class B Telecom Services 91 10.81
CBB 15.22 596,913 Cinci Telecom Services 89 15.13
MAG 18.99 866,979 MAG Silver Corporation Or Silver 88 17.65
TAST 7.57 620,648 Carrols Restaurant Group - Inc. Restaurants 86 6.69
PRVB 15.49 894,501 Provention Bio - Inc. Biotechnology 83 13.76
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 28606.3
 0.07% 0.24% Up
NASDAQ 11671.6
 0.79% 30.08% Up
S&P 500 3483.81
 0.19% 7.83% 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
11.12		 NASDAQ Composite
34.93		 NASDAQ Composite
30.08
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Solar
 Silver
 Shell Companies
Most Improved Industry (by change in technical rank2)
Electrical Equipment & Parts
31		 Electrical Equipment & Parts
37		 Coking Coal
90		 Residential Construction
117
Charts of each industry rank and performance over 12 months are available on the site

 

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