Breakoutwatch Weekly Summary 10/31/20

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Weekly Commentary
Grimm Prospects on Halloween

Despite the spin put on Thursday's economic numbers, which produced a one day rally, the majority of the news this week was grim and the markets sold off accordingly. The NASDAQ gave up 5.5% but actually fared better than the other two main indexes. Clearly a large stimulus is needed to help small business and the unemployed, but it is not going to happen in the near future. Covid-19 cases are rising and economies domestic and foreign are being negatively affected. There is also uncertainty about the outcome of Tuesday's election, and that uncertainty could continue for days or weeks if a clear winner does not emerge on Tuesday or very shortly after. Although in the medium term markets will recover from 1-2 months of uncertainty, the outlook for upside breakouts will be bleak.

The NASDAQ has fallen 9% from its October 12 high, almost in correction territory (-10%) but a fall to at least the next support level at -12% looks likely.
We already see the impact of the negative trend in the performance of upside breakouts this week. Of the eleven we counted, only 6 remained above their breakout price by Friday's close.
Chart of the Week
Martin Marietta Materials Inc (MLM)

Martin Marietta Materials (MLM) was appreciating on very strong volume, indicating considerable institutional interest, before setting a pivot on October 9. Subsequent price action in the handle was typical of the kind of profit taking expected, but in the last 2 days that strong institutional interest appears to have reappeared. The stock closed on Friday 4% below the pivot price.
MLM 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 10/26/20
List Breakouts Avg. Gain
CWH 9 -0.2
SQZ 2 4.95
Breakouts Detail for Week Beginning 10/26/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-10-28 CLGX CWH n 69.57 76.23 88 76.93 10.58% 12.76%
2020-10-30 GSHD CWH n 113.41 122.54 94 122.54 8.05% 9.52%
2020-10-26 YY SQZ y 85.14 89.08 81 91.38 7.33% 8.36%
2020-10-27 YY SQZ y 89.09 90 86 91.38 2.57% 3.56%
2020-10-28 CSV CWH n 25.22 25.5 81 25.81 2.34% 4%
2020-10-30 ALLK CWH n 94.38 95.13 81 95.13 0.79% 4.6%
2020-10-29 IQ CWH y 24.75 25.04 84 24.7 -0.2% 3.54%
2020-10-28 BG CWH n 57.87 58.06 80 56.73 -1.97% 4.54%
2020-10-27 VCRA CWH n 33.67 34.51 92 32.78 -2.64% 9.47%
2020-10-27 MKTX CWH n 572.45 573 84 538.85 -5.87% 0.52%
2020-10-28 CHWY CWH n 70.72 72.01 94 61.6 -12.9% 2.57%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 30, 2020
Symbol BO
Company Industry RS
PRTS 14.90 2,641,974 - Inc. Internet Retail 99 12.69
ICLK 8.64 1,914,668 iClick Interactive Asia Group Limited Advertising Agencies 95 7.97
IDT 11.86 556,166 IDT Corporation Class B Telecom Services 91 9.53
GPRE 17.38 618,392 Green Plains - Inc. Specialty Chemicals 91 15.10
EQT 16.87 6,812,012 EQT Corporation Oil & Gas E&P 90 15.14
MAG 18.99 810,514 MAG Silver Corporation Or Silver 89 16.94
RESI 13.69 1,456,972 Front Yard Residential Corporation REIT - Residential 87 13.39
OSUR 17.79 3,521,844 OraSure Technologies - Inc. Medical Instruments & Supplies 85 14.94
OLN 18.30 4,617,208 Olin Corporation Specialty Chemicals 83 16.55
MAT 14.82 6,319,504 Mattel - Inc. Leisure 83 13.77
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 26501.6
-6.47% -7.14% Down
NASDAQ 10911.6
-5.51% 21.61% Down
S&P 500 3269.96
-5.64% 1.21% 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
NASDAQ Composite NASDAQ Composite
NASDAQ Composite
NASDAQ Composite
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Utilities - Renewable
Shell Companies

Most Improved Industry (by change in technical rank2)
Apparel Manufacturing
Apparel Manufacturing
Residential Construction
Charts of each industry rank and performance over 12 months are available on the site


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