Breakoutwatch Weekly Summary 05/21/22

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Weekly Commentary
Breakout Opportunities Persist Despite Rally not confirmed by Follow Through Day

We counted 61 breakouts this week, with 7 gaining at least 5%. The Volatility Squeeze pattern continued to deliver the best performers although one cup and handle breakout, AZPN, delivered a 14% gain.

I considered that last Friday was technically the first day of a possible rally and that we should wait for a follow through day in the next 4 - 7 days. provided the day one close was not undercut. Tuesday, day 3, looked promising with a strong move higher, but day one's close was undercut on Wednesday. Investors were shaken by disappointing results from Target, among others, as profits were undermined by higher supply and labor costs. Fears of a looming recession were also heightened by a warning from Fed Chairman Powell, that interest rates would continue to rise until inflation came down.
Chart of the Week
American Tower Corporation (AMT)

 American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multi-tenant communications real estate with a portfolio of approximately 219,000 communications sites. It is a personal holding of mine. AMT broke out of its Average Trading Range (ATR) on Friday after announcing  a 2.1% dividend increase payable July 8 to shareholders of record on June 17.

AMT 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 05/16/22
List Breakouts Avg. Gain
CWH 5 3.09
SQZ 56 1.25
Breakouts Gaining at Least 5% for Week Beginning 05/16/22
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2022-05-17 PBT SQZ y 13.53 13.98 98 16.4 21.21% 21.95%
2022-05-19 PBT SQZ y 13.89 14 98 16.4 18.07% 18.79%
2022-05-20 PBT SQZ y 14.01 16.4 98 16.4 17.06% 17.77%
2022-05-17 AZPN CWH n 170.16 184 94 194.01 14.02% 14.51%
2022-05-17 CRT SQZ y 16.66 16.79 94 18.31 9.9% 12.85%
2022-05-18 CRT SQZ y 16.80 17.1 94 18.31 8.99% 11.9%
2022-05-19 JKS SQZ y 53.86 56.45 93 57.16 6.13% 7.33%
*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
XENT Intersect ENT, Inc. Medical Devices 93 28.24 28.25 99.96
IIN IntriCon Corporation Medical Instruments & Supplies 96 24.23 24.31 99.67
PLAN Anaplan, Inc. Software - Infrastructure 96 65.01 65.86 98.71
PHI PLDT Inc. Telecom Services 95 38.53 39.00 98.79
LHCG LHC Group Medical Care Facilities 92 166.34 169.84 97.94
*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 20, 2022
Symbol BO
Company Industry RS
BLU 9.09 1,094,402 BELLUS Health Inc. Biotechnology 98 8.25
TUFN 13.00 1,197,701 Tufin Software Technologi Software - Infrastructure 96 12.55
ARCO 8.11 1,433,320 Arcos Dorados Holdings Inc. Restaurants 95 7.55
DNOW 12.55 1,163,132 NOW Inc. Oil & Gas Equipment & Services 93 10.38
MERC 17.17 504,825 Mercer International Inc. Paper & Paper Products 93 14.24
ICPT 20.00 1,499,292 Intercept Pharmaceuticals - Inc. Biotechnology 92 17.46
RFP 15.23 948,186 Resolute Forest Products Inc. Paper & Paper Products 92 13.19
KT 15.30 1,365,601 KT Corporation Telecom Services 88 14.07
OEC 19.00 756,043 Orion Engineered Carbons S.A Specialty Chemicals 87 18.33
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 31261.9
-2.9% -13.97% Down
NASDAQ 11354.6
-3.82% -27.42% Down
S&P 500 3901.36
-3.05% -18.14% 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
Dow Jones
Dow Jones
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Thermal Coal
Thermal Coal
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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