Breakoutwatch Weekly Summary 10/29/16

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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
Dangers in Going Long Increase as Trends Continue Down and Election Uncertainty Mounts Our trend indicators continue to point down and our research shows that going long carries more risk when that occurs. Our Cup and Handle Pattern backtest tool confirms that this is the case (more below). Compounding the danger now is the latest uncertainty about the election outcome introduced by FBI Director Comey on Friday. The markets reacted negatively and we will likely see more volatility as more rumors and contradictory statements emerge in the coming days. Wikileaks may have more disclosures to come and I expect more evidence of Trump's misogyny will emerge..This October likely has more surprises in store!

New Features this Week
No new features this week.

Strategy Suggestions
Do Not Go Long When Trends Signals are Down The two charts below from our cup and handle backtest tool illustrate why you should not open new long positions when our trend indicators are down. The top chart shows simulated returns when not opening new positions when the NASDAQ indicator is down and the bottom when that rule is not in force. You can see that returns are dramatically different. The shaded green bands show the times when the NASDAQ trend was down.

Breakouts Summary by Watchlist for Week Beginning 10/24/16
List	Breakouts	Avg. Gain
CwH		0
SQZ	5	1.37
HTF		0
HSB		0
DB		0

Breakouts Detail for Week Beginning 10/24/16
Brkout Date	Symbol	Base	Squeeze	BrkoutOut Price	Brkout Day Close	RS Rank^*	Last Close	Current % off BOP	Gain at Intraday High
2016-10-27	PLNT	SQZ	y	20.33	21	83	21.16	4.08%	8.95%
2016-10-28	PFG	SQZ	y	53.57	55	86	55.27	3.17%	5.13%
2016-10-28	LMAT	SQZ	y	21.12	22	94	21.58	2.18%	2.18%
2016-10-28	JPEP	SQZ	y	8.14	8	88	8.2	0.74%	3.69%
2016-10-26	GRMN	SQZ	y	49.52	50	87	47.87	-3.33%	7.67%
^*RS Rank on day before breakout.

12 Month Successful Breakout History

Top Rated Cup and Handle Stocks as of Friday October 28, 2016
Symbol	BO Price	BO Vol.	Company	Industry	RS Rank	Last Close
ALRM	30.00	367,791	Alarm.com Holdings - Inc.	Application Software	95	29.28
PLOW	33.75	130,474	Douglas Dynamics - Inc.	Auto Parts	93	31.60
KEYW	11.30	312,003	The KEYW Holding Corporation	Application Software	93	10.46
EMKR	6.55	399,910	EMCORE Corporation	Semiconductor - Integrated Circuits	92	6.45
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	18161.2	0.09%	4.22%	Down
NASDAQ	5190.1	-1.28%	3.65%	Down
S&P 500	2126.41	-0.69%	4.03%	Down
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 0.54 %	NASDAQ Composite 8.68 %	Dow Jones 4.22 %

Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Computer Based Systems	Sporting Goods Stores	Silver	Silver

Most Improved Industry (by change in technical rank²)
Confectioners 74	Music & Video Stores 113	Basic Materials Wholesale 146	Nonmetallic Mineral Mining 196
Charts of each industry rank and performance over 12 months are available on the site

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