Breakoutwatch Weekly Summary 01/29/22

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Weekly Commentary
Dead Cat Bounce; Follow Through Day for AAPL

The week opened with a strong 6% intraday reversal for the NASDAQ on 1.5% times average volume. The selloff resumed on Tuesday though, confirming that Monday's action was just a dead cat bounce. Volatility continued through the week but closed with another rally for the NASDAQ, closing 3.1% higher, leaving the index essentially flat for the week. Friday's rally followed a strong earnings report from Apple (AAPL) which gained 7%. However, it was clear that investors preferred blue chips when faced with market volatility and the DJI gained 1.3%.

Friday's surge by AAPL could be considered a 'Follow Through Day' although the term is normally applied to major indexes and can indicate a market bottom. In this case, it is possibly indicating the rout of AAPL is over. Other big cap tech stocks followed Apple's lead and the Vanguard Mega Cap index rose 3.8%, also indicating a possible FTD.

Chart of the Week
H&R Block

Instead of looking for promising cup and handle pattern stocks, I'm starting to focus on stocks that may have bottomed and are starting to rise. H&R Block fell 17.3% from it's high and after gaining 3.1 % just crossed the upper bound of its average true range band. Note that pattern follows that of an FTD as discussed above. With tax season upon us HRB is competing aggressively against Intuit after announcing a mobile banking app, SPRUCE.
HRB 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 01/24/22
List Breakouts Avg. Gain
CWH 10 -2.67
SQZ 13 1.07
Breakouts Gaining at Least 5% for Week Beginning 01/24/22
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2022-01-27 DAC CWH n 84.04 85.89 98 91.46 8.83% 8.98%
*RS Rank on day before breakout.
CwH Stocks Likely to Close above BoP at Next Session*
Symbol Company Industry RS Rank Last Close BoP % off BoP
HWBK Hawthorn Bancshares, Inc. Banks - Regional 92 25.85 26.12 98.97
PEBO Peoples Bancorp Inc. Banks - Regional 81 32.99 34.63 95.26
AXP American Express Company Credit Services 90 177.06 179.23 98.79
GCBC Greene County Bancorp, Inc. Banks - Regional 96 37.5 37.81 99.18
NXGN NextGen Healthcare, Inc. Health Information Services 90 19.3 20.26 95.26
*These stocks were selected using our CWH price breakout model. This model selects stocks likely to close above the breakout price at the next session. When backtested over the three years beginning January 2019 until October 28, 2021, 80% of the stocks selected closed above their breakout price. This does not mean that on any day, 80% of the stocks selected will breakout, but it is the expectation over an extended period of time.

Top Rated Cup and Handle Stocks as of Friday January 28, 2022
Symbol BO
Company Industry RS
WTTR 7.45 581,961 Select Energy Services - Inc. Oil & Gas Equipment & Services 89 6.45
PUMP 11.40 1,250,160 ProPetro Holding Corp. Oil & Gas Equipment & Services 88 10.39
OII 14.41 1,091,540 Oceaneering International - Inc. Oil & Gas Equipment & Services 86 13.24
SXC 7.64 1,016,865 SunCoke Energy - Inc. Coking Coal 83 6.88
UE 19.96 1,032,984 Urban Edge Properties REIT - Diversified 83 18.39
BSM 12.02 553,936 Black Stone Minerals - L.P. Oil & Gas E&P 81 11.19
DNOW 9.83 1,487,680 NOW Inc. Oil & Gas Equipment & Services 81 8.72
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 34725.5
1.34% -4.44% Down
NASDAQ 13770.6
0.01% -11.98% Down
S&P 500 4431.85
0.77% -7.01% 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 Dow Jones
S&P 500
Dow Jones
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Oil & Gas Integrated
REIT - Residential
Most Improved Industry (by change in technical rank2)
Aerospace & Defense
Aerospace & Defense
Aerospace & Defense
Aerospace & Defense
Charts of each industry rank and performance over 12 months are available on the site


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