Breakoutwatch Weekly Summary 10/01/16

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Contents
New Features this Week
Strategy Suggestions
Breakouts Summary
Breakouts Detail 		Top Cup and Handle Chart Pattern Stocks
Breakouts Index
Major Indexes Performance 		Best Performing Index
Best Performing Industry
Most Improved Industry

Weekly Commentary

Key Takeaways:
  • In a volatile trading week, the major indexes made modest gains.
  • Our trend indicators remain positive
  • The number of breakouts increased from 16 to 26
  • Interest rates likely to remain steady through to November, helping the upward trend to continue
  • Deutche Bank capital adequacy doubts (the cause of Thursday's decline) temporarily resolved
  • Friday's above average volume bodes well for Monday

NASDAQ Chart

New Features this Week

Kaufman's Adaptive Moving  Average (KAMA) added to Technical  Analysis Charts
tech Indicators
Kaufman's Adaptive Moving  Average (KAMA) takes into consideration not only the direction of the market, but also the market volatility. Compared to a simple moving average, KAMA generates fewer false signals. KAMA may be helpful in determining entry and exit points. I've added two versions of KAMA to the chart options:
  • KAMA(10,2,30) is a fast 2 day moving average, useful for determining entry and exit points
  • KAMA(10,5,30) is a slower moving average,  useful for determining market trend .
In our context I see its use being for only entering a breakout position if the trend is positive as determined by the slope of the slower KAMA and exiting  the position when the close is below the fast KAMA. This is illustrated  in  this chart for  Sky West (SKYW) that broke out in April:
SKYW
I'll have more to say about using KAMA as an exit timing tool next week.
Strategy Suggestions

  Our latest strategy suggestions are here and here.
Breakouts Summary by Watchlist for Week Beginning 09/26/16
List Breakouts Avg. Gain
CWH 15 1.97
SQZ 9 2.61
HTF
0
HSB 2 2.31
DB
0
Breakouts Detail for Week Beginning 09/26/16
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2016-09-28 WOR CWH n 44.39 47 92 48.03 8.2% 9.19%
2016-09-29 QCOM CWH n 64.00 67 81 68.5 7.03% 10%
2016-09-29 TWI SQZ y 9.47 10 96 10.12 6.86% 7.6%
2016-09-26 MB SQZ y 18.56 19 84 19.66 5.93% 9.81%
2016-09-29 LL CWH n 18.69 19 82 19.67 5.24% 7.49%
2016-09-30 FTAI SQZ y 11.91 13 80 12.51 5.04% 5.71%
2016-09-27 XONE SQZ y 14.54 15 97 15.22 4.68% 6.6%
2016-09-28 TK HSB n 7.37 8 7 7.71 4.61% 5.83%
2016-09-26 KNOP CWH n 19.99 20 86 20.89 4.5% 5.05%
2016-09-29 OAS CWH n 10.99 11 85 11.47 4.37% 4.37%
2016-09-27 EGRX CWH n 68.14 70 95 70 2.73% 4.74%
2016-09-28 APA CWH n 62.19 64 86 63.87 2.7% 6.13%
2016-09-30 IIVI CWH n 23.81 24 85 24.33 2.18% 2.73%
2016-09-28 PFG CWH y 50.61 51 82 51.51 1.78% 1.78%
2016-09-30 MMYT CWH n 23.26 24 92 23.6 1.46% 2.32%
2016-09-28 NAII CWH n 13.00 13 93 13.14 1.08% 4.77%
2016-09-30 CNCO SQZ y 8.92 9 85 9.01 1.01% 1.91%
2016-09-30 SLAB CWH n 58.21 59 84 58.8 1.01% 1.96%
2016-09-30 ARWR SQZ y 7.31 7 88 7.35 0.55% 5.61%
2016-09-30 NSTG CWH n 19.88 20 90 19.98 0.5% 2.01%
2016-09-28 BAK CWH n 15.31 16 93 15.38 0.46% 6.14%
2016-09-28 QUOT SQZ y 13.26 14 80 13.31 0.38% 3.32%
2016-09-28 MITK SQZ y 8.26 9 97 8.29 0.36% 6.17%
2016-09-30 VRTU HSB n 24.68 25 5 24.68 0% 1.22%
2016-09-28 DLNG SQZ y 15.68 16 86 15.48 -1.28% 3.32%
2016-09-28 GOGO CWH y 12.80 13 88 11.04 -13.75% 3.75%
*RS Rank on day before breakout.
12 Month Successful Breakout History
breaouts
Top Rated Cup and Handle Stocks as of Friday September 30, 2016
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
RIC 11.66 1,091,024 Richmont Mines - Inc. Gold 98 10.05
RGLD 86.93 995,535 Royal Gold - Inc. Gold 94 77.43
ARLP 22.32 463,038 Alliance Resource Partners - L.P. Industrial Metals & Minerals 94 22.22
AEM 57.35 2,735,432 Agnico Eagle Mines Limited Gold 94 54.16
ENBL 16.39 335,686 Enable Midstream Partners - LP Oil & Gas Pipelines 94 15.25
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 18308.2
 0.26% 5.07% Up
NASDAQ 5312
 0.12% 6.08% Up
S&P 500 2168.27
 0.17% 6.08% Up
1The Market Trend is derived from our proprietary market model. The market model is described on the sitehere.
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 NASDAQ Composite
9.24 %		 NASDAQ Composite
8.09 %		 S&P 500
6.08 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Manufactured Housing
 Manufactured Housing
 Silver
 Silver
Most Improved Industry (by change in technical rank2)
Small Tools & Accessories
54		 Basic Materials Wholesale
191		 Manufactured Housing
213		 Manufactured Housing
213
Charts of each industry rank and performance over 12 months are available on the site

 

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