Breakoutwatch Weekly Summary 06/04/22

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Weekly Commentary
Pessimistic Recession Comments Undercut Positive Economy; Also see New Feature

Despite the economy adding a further 390K jobs in May, and most of the Fed's districts reporting modest growth, the major indexes fell on Friday, led by the NASDAQ with a 2.5% loss leaving the index down 1% for the week. The good news was tempered by recession warnings from J.P Morgan CEO Jamie Dymond, who sees an "economic hurricane" coming, and Elon Musk who has a "super bad feeling" about the economy.

The cup and handle pattern failed to produce significant breakouts this week leaving only the Volatility Squeeze pattern to produce just 2 breakouts gaining over 5%.
Chart of the Week
Alaska Airlines (ALK)

Alaska Airlines brokeout above its average trading range on Friday on twice its average daily volume after reporting that higher revenues were offsetting fuel increases.  "We continue to experience sustained strong demand for air travel throughout our network," the company said in a filing. Alaska continues "to expect to deliver double-digit pretax margin in the second quarter,"

ALK Chart

New Features this Week
Average True Range Breakouts added to Daily Alerts Page

The Average True Range watchlist shows stocks that have moved above their average true range and are therefore already a "breakout". If they continue to move higher at the next session they now appear on the daily alerts page.

Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 05/30/22
List Breakouts Avg. Gain
CWH 8 0.06
SQZ 55 1.24
Breakouts Gaining at Least 5% for Week Beginning 05/30/22
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2022-05-31 MXC SQZ y 19.27 19.76 98 20.91 8.51% 11.78%
2022-06-01 VRTV SQZ y 145.36 148.03 95 154.73 6.45% 9.67%
*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
CRC California Resources Corporation Oil & Gas E&P 91 45.65 45.88 99.5
WLL Whiting Petroleum Corporation Oil & Gas E&P 96 92.52 93.74 98.7
ESEA Euroseas Ltd. Marine Shipping 96 33.39 34.50 96.78
NBN Northeast Bank Banks - Regional 92 39.51 39.91 99
RNGR Ranger Energy Services, Inc. Oil & Gas Equipment & Services 92 10.75 10.98 97.91
NWPX Northwest Pipe Company Metal Fabrication 92 34.1 34.70 98.27
CNX CNX Resources Corporation Oil & Gas E&P 97 22.65 22.89 98.95
RNDB Randolph Bancorp, Inc. Banks - Regional 93 26.01 26.63 97.67
*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.

Symbol BO
Company Industry RS
OIS 8.44 1,104,001 Oil States International - Inc. Oil & Gas Equipment & Services 97 7.99
VIST 10.03 983,740 Vista Energy S.A.B. de C. Oil & Gas E&P 97 8.97
CTT 12.39 597,063 CatchMark Timber Trust - Inc. REIT - Specialty 96 11.62
DNOW 12.55 1,097,556 NOW Inc. Oil & Gas Equipment & Services 95 11.49
ARCO 8.11 1,465,707 Arcos Dorados Holdings Inc. Restaurants 94 7.71
WTTR 9.41 527,110 Select Energy Services - Inc. Oil & Gas Equipment & Services 94 8.71
GEL 12.69 582,634 Genesis Energy - L.P. Oil & Gas Midstream 92 12.41
NPTN 15.63 922,283 NeoPhotonics Corporation Semiconductors 92 15.49
RFP 15.56 986,557 Resolute Forest Products Inc. Paper & Paper Products 91 14.22
KT 15.25 1,381,972 KT Corporation Telecom Services 90 14.87
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 32899.7
-0.94% -9.46% Down
NASDAQ 12012.7
-0.98% -23.22% Down
S&P 500 4108.54
-1.2% -13.8% 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
Residential Construction
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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