Breakoutwatch Weekly Summary 05/07/22

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Weekly Commentary
Recession Fears Dominate; Volatility Provides Breakout Opportunities from the Volatility Squeeze Pattern

This was a volatile week that saw the markets respond positively to the FOMC decision to raise the overnight funds rate by 0.5% when a 0.75% increase was feared. Reality set in on on Thursday,however, as the markets feared a repeat of the Volcker bitter medicine that was needed to squash inflation in the late 70's. In 1980 the overnight rate hit 20% and a recession followed. For the week, the NASDAQ lost 1.5% and is now 25% below its November high.
The volatility nevertheless provided opportunities for several strong breakouts, mostly from Volatility Squeeze pattern. Building products supplier Bluelinx Holdings Inc. (BXC) soared 37% higher.
Chart of the Week
Cross Timbers Royalty Trust (CRT)

CRT are an 'Express Trust' involved in Oil and Gas Exploration and production in Texas, Oklahoma, and New Mexico; CRT is the only cup with handle pattern selected by our model for CWH stocks to breakout at the next session
CRT 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 05/02/22
List Breakouts Avg. Gain
CWH 10 1.27
SQZ 41 1.47
HTF 2 -6.15
Breakouts Gaining at Least 5% for Week Beginning 05/02/22
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2022-05-03 BXC SQZ y 70.46 76.56 95 96.83 37.43% 41.92%
2022-05-02 INOD SQZ y 7.30 8.05 90 8.5 16.44% 23.29%
2022-05-02 WIRE SQZ y 112.82 117.4 92 128.61 14% 19.57%
2022-05-03 WIRE SQZ y 117.41 123.45 93 128.61 9.54% 14.9%
2022-05-03 AMAL SQZ y 18.45 18.95 90 19.87 7.7% 10.08%
2022-05-05 K SQZ y 67.86 70.23 87 72.73 7.18% 8.02%
2022-05-05 LPG CWH n 16.20 17.26 92 17.32 6.91% 8.58%
2022-05-03 PSX CWH n 90.64 90.79 89 96.36 6.31% 6.75%
2022-05-03 INOD SQZ y 8.06 8.68 93 8.5 5.46% 11.66%
*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
INSW International Seaways, Inc. Oil & Gas Midstream 96 22.77 22.98 99.09
RNDB Randolph Bancorp, Inc. Banks - Regional 90 26.38 26.63 99.06
CRT Cross Timbers Royalty Trust Oil & Gas E&P 94 15.85 16.16 98.08
*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 May 06, 2022
Symbol BO
Company Industry RS
BLU 9.09 1,013,430 BELLUS Health Inc. Biotechnology 98 7.72
TUFN 13.00 1,132,006 Tufin Software Technologi Software - Infrastructure 96 12.82
MRTN 18.92 674,197 Marten Transport - Ltd. Trucking 90 18.25
NRZ 11.75 8,188,715 New Residential Investment Corp. REIT - Mortgage 88 11.13
KT 15.30 1,293,322 KT Corporation Telecom Services 86 13.90
PSO 11.07 1,069,774 Pearson - Plc Publishing 84 9.53
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 32899.4
-0.24% -9.46% Down
NASDAQ 12144.7
-1.54% -22.37% Down
S&P 500 4123.34
-0.21% -13.49% 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
S&P 500 Dow Jones
Dow Jones
Dow Jones
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Thermal Coal
Thermal Coal
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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