BreakoutWatch.com Weekly Review for 04/03/2016

Breakoutwatch Weekly Newsletter 04/02/16

You are receiving this email because you are or were a BreakoutWatch.com subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.

Weekly Commentary
New Feature this week: Top 10 cup and handle stocks to watch next week. See below. The NASDAQ Composite outperformed the two other major indexes with a gain of 3% for the week and recorded three accumulation days compared to only two for the DJI and S&P 500. Unlike the other indexes, however, the index still lags for the year and remains in negative territory. I expect this to change shortly as the index broke through the psychological resistance level of its 50 day moving average on Friday, after two earlier attempts in the week.

Weekly Commentary

New Feature this week: Top 10 cup and handle stocks to watch next week. See below.

The NASDAQ Composite outperformed the two other major indexes with a gain of 3% for the week and recorded three accumulation days compared to only two for the DJI and S&P 500. Unlike the other indexes, however, the index still lags for the year and remains in negative territory. I expect this to change shortly as the index broke through the psychological resistance level of its 50 day moving average on Friday, after two earlier attempts in the week.

Weekly Breakout Report

Consistent with the usual pattern, Cup and handle stocks delivered the most breakouts and the largest gains, with the exception of a single Head and Shoulders Bottom breakout, DLNG.

Breakouts Summary by Watchlist for Week Beginning 03/28/16
List	Breakouts	Avg. Gain
CwH	13	2.84
SQZ	10	1.57
HTF	3	2.16
HSB	1	17.46

Breakouts Detail for Week Beginning 03/28/16
Brkout Date	Symbol	Base	Squeeze	BrkoutOut Price	Brkout Day Close	RS Rank^*	Last Close	Current % off BOP	Gain at Intraday High
03/31/16	DLNG	HSB	N	9.68	11.39	25	11.37	17.46	18.23
03/31/16	PRMW	CwH	Y	9.93	10.08	97	10.78	8.56	8.66
03/30/16	TROX	HTF	N	6.34	6.64	66	6.84	7.89	8.04
03/30/16	SONC	CwH	N	32.94	34.46	85	35.37	7.38	7.44
03/31/16	BETR	CwH	N	13.92	14.29	95	14.81	6.39	6.39
03/30/16	KELYA	SQZ	Y	18.17	18.61	89	19.2	5.67	5.78
03/30/16	LULU	CwH	N	64.99	67.94	80	68.67	5.66	5.75
04/01/16	TBPH	SQZ	Y	18.87	19.74	96	19.74	4.61	4.61
03/30/16	CYNO	SQZ	Y	43.67	43.775	92	44.99	3.02	3.05
03/28/16	LAYN	SQZ	Y	7.00	7.025	96	7.04	0.57	3
03/29/16	CVCO	CwH	N	91.16	92.40	92	93.25	2.29	2.54
03/29/16	SSNI	CwH	N	14.49	14.61	85	14.73	1.66	1.86
03/30/16	X	HTF	N	16.26	16.48	97	16.46	1.23	1.78
03/28/16	PFO	CwH	N	11.80	11.92	87	11.79	-0.08	1.61
03/29/16	LBRDK	CwH	N	57.61	58.21	83	58.45	1.46	1.54
03/29/16	KANG	CwH	N	21.70	21.70	92	22.01	1.43	1.47
03/30/16	CBNJ	SQZ	Y	13.35	13.5	94	13.49	1.05	1.2
03/29/16	NAD	SQZ	Y	14.75	14.75	81	14.89	0.95	0.95
04/01/16	ORI	CwH	Y	18.31	18.47	86	18.47	0.87	0.93
03/30/16	OIA	SQZ	Y	7.65	7.68	86	7.71	0.78	0.78
04/01/16	LKQ	SQZ	Y	31.93	32.115	83	32.115	0.58	0.75
03/29/16	DCT	CwH	N	39.77	40.02	88	39.92	0.38	0.65
03/31/16	SPB	CwH	N	108.90	109.31	82	109.51	0.56	0.61
03/30/16	OLED	CwH	Y	54.68	54.73	88	54.88	0.37	0.51
03/29/16	FR	SQZ	Y	22.89	22.955	83	22.61	-1.22	0.48
03/31/16	DDD	HTF	N	15.45	15.49	94	15.04	-2.65	0.32
03/31/16	PZE	SQZ	Y	6.55	6.55	82	6.53	-0.31	0.31
Weekly Average (27 breakouts)								2.84	3.31
^*RS Rank on day before breakout.

New Features This Week
I have dropped two components of the newsletter this week to make way for a new feature which lists the 10 top rated stocks as measured by our best performing criteria set out in our Revised Rules for Trading Cup and Handle Breakouts. You'll find this list as the last entry in the newsletter. The two components I dropped were the top rated stocks and best second chances based on my expected gain model. I dropped them because after evaluating the expected gain model for 2015 to date, I concluded that the model had no value.

New Features This Week

I have dropped two components of the newsletter this week to make way for a new feature which lists the 10 top rated stocks as measured by our best performing criteria set out in our Revised Rules for Trading Cup and Handle Breakouts.
You'll find this list as the last entry in the newsletter.

The two components I dropped were the top rated stocks and best second chances based on my expected gain model. I dropped them because after evaluating the expected gain model for 2015 to date, I concluded that the model had no value.

Top Tip of the Week
Rare but Beautiful The best performing cup and handle stock for the week was PRMW which had a well shaped handle and was coincidentally in a squeeze. The combination of a handle squeeze and cup and handle pattern can produce some of the most rewarding short term breakouts as I showed in Breakouts from a Cup and Handle Pattern with Volatility Squeeze Provide Best Breakout Day Pop. The handle squeeze is a comparatively rare situation, but is usually rewarding.

Top Tip of the Week

Rare but Beautiful

The best performing cup and handle stock for the week was PRMW which had a well shaped handle and was coincidentally in a squeeze. The combination of a handle squeeze and cup and handle pattern can produce some of the most rewarding short term breakouts as I showed in Breakouts from a Cup and Handle Pattern with Volatility Squeeze Provide Best Breakout Day Pop.

The handle squeeze is a comparatively rare situation, but is usually rewarding.

PRM handle squeeze

Major Index Summary
Index	Value	Change Week	Change YTD	Trend¹
Dow	17792.8	2.11%	2.11%	Up
NASDAQ	4914.54	2.95%	-1.85%	Up
S&P 500	2072.78	1.41%	1.41%	Up
¹The Market Trend is derived from our proprietary market model. The market model is described on the site. ²The site also shows industry rankings based on fundamentals, combined technical and fundamentals, and on price alone. The site also shows daily industry movements.

Major Index Summary

Index

Value

Change Week

Change YTD

Trend¹

Dow

17792.8

2.11%

NASDAQ

4914.54

2.95%

-1.85%

S&P 500

2072.78

1.41%

¹The Market Trend is derived from our proprietary market model. The market model is described on the site.
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 3.1 %	Dow Jones 3.75 %	Dow Jones 8.02 %	Dow Jones 2.11 %

Best Performing Index

1 Week

13 Weeks

26 Weeks

Year-to-Date

NASDAQ Composite
3.1 %

Dow Jones
3.75 %

Dow Jones
8.02 %

Dow Jones
2.11 %

Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Silver	Silver	Water Utilities	Auto Parts Stores

Best Performing Industry (by average technical score over each period)

1 Week

3 Weeks

13 Weeks

26 Weeks

Silver

Water Utilities

Auto Parts Stores

Most Improved Industry (by change in technical rank²)
1 Week	3 Weeks	13 Weeks	26 Weeks
Electronics Wholesale + 54	Copper + 136	Silver + 186	Silver + 200
Charts of each industry rank and performance over 12 months are available on the site

Most Improved Industry (by change in technical rank²)

1 Week

3 Weeks

13 Weeks

26 Weeks

Electronics Wholesale + 54

Copper + 136

Silver + 186

Silver + 200

Charts of each industry rank and performance over 12 months are available on the site

Top 10 Cup and Handle Stocks as of Friday April 1
Symbol	BO Price	BO Vol.	Company	Industry	RS Rank	Last Close
USCR	63.07	475,956	U S Concrete - Inc.	General Building Materials	97	61.82
FIZZ	43.80	168,670	National Beverage Corp.	Beverages - Soft Drinks	97	43.67
LITE	27.25	1,005,718	Lumentum Holdings Inc.	Money Center Banks	96	26.59
SNC	13.20	209,745	State National Companies - Inc.	Property & Casualty Insurance	96	12.71
MGPI	26.43	140,422	MGP Ingredients - Inc.	Processed & Packaged Goods	96	24.39
PSAU	18.52	56,148	PowerShares Global Gold & Precious Metals	Closed-End Fund - Equity	96	17.39
TX	18.76	538,275	Ternium S.A.	Steel & Iron	95	18.23

Top 10 Cup and Handle Stocks as of Friday April 1

Symbol

BO
Price

BO
Vol.

Company

Industry

RS
Rank

Last
Close

USCR

63.07

475,956

U S Concrete - Inc.

General Building Materials

61.82

FIZZ

43.80

168,670

National Beverage Corp.

Beverages - Soft Drinks

43.67

LITE

27.25

1,005,718

Lumentum Holdings Inc.

Money Center Banks

26.59

SNC

13.20

209,745

State National Companies - Inc.

Property & Casualty Insurance

12.71

MGPI

26.43

140,422

MGP Ingredients - Inc.

Processed & Packaged Goods

24.39

PSAU

18.52

56,148

PowerShares Global Gold & Precious Metals

Closed-End Fund - Equity

17.39

18.76

538,275

Ternium S.A.

Steel & Iron

18.23

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