Breakoutwatch Weekly Summary 08/01/20

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Weekly Commentary
Breakouts Average 5% Gain as NASDAQ Advances 3.7%. Cup and Handle Pattern Breakouts Dominate

The NASDAQ shrugged off last week's ominous looking decline to gain 3.7% bolstered by better than expected Q2 results from Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and Facebook (FB). Because the NASDAQ Composite is a market capitalization-weighted index, these stocks have a heavy influence on the daily movement of the index. Should they fall out of favor, then the index will move south. At the moment, there seems little fear of that happening,unless serious anti-trust action is threatened.
NASDAQ Chart
The dominant breakouts this week came from the cup and handle pattern with an average gain of 5%. Ultra Clean Holdings (UCTT) delivered the biggest gain (21.5%) but it was difficult to jump on as it gapped up 10.5% above BoP at the open.
Chart of the Week
Applied Materials (AMAT) meets our Buy on Alert criteria. AMAT is listed on the NASDAQ in the Semiconductor Equipment & Materials industry group. Since the market bottom it has shown a steady march higher with successive handle formations and subsequent breakouts. The current right side handle shows a classic successful breakout formation since profit taking immediately after the pivot was set. AMAT closed on Friday just 1.5% below the breakout price of $65.33.

AMAT 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 07/27/20
List Breakouts Avg. Gain
CWH 10 4.95
SQZ 8 3.83
HTF 1 13.97
HSB
0
DB
0
Breakouts Detail for Week Beginning 07/27/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-07-29 UCTT CWH n 24.77 24.82 85 30.09 21.48% 25.56%
2020-07-29 BXC HTF n 12.03 12.56 67 13.71 13.97% 18.87%
2020-07-29 GRWG SQZ y 7.53 8.52 92 8.44 12.08% 19.39%
2020-07-30 MRAM SQZ y 7.50 8.26 94 8.39 11.87% 14.4%
2020-07-29 INSG SQZ y 12.32 13.72 90 13.48 9.42% 12.82%
2020-07-28 DLHC CWH n 9.30 10.29 93 10.16 9.25% 23.55%
2020-07-30 QRVO CWH y 121.54 128.67 83 128.15 5.44% 7.67%
2020-07-29 IIPR SQZ y 99.02 104.07 80 104.23 5.26% 8.06%
2020-07-28 MEDP CWH n 114.11 122.16 87 119.35 4.59% 26.55%
2020-07-30 SWKS CWH y 139.88 142.19 86 145.58 4.07% 4.25%
2020-07-30 INOV CWH n 22.75 24.2 85 23.53 3.43% 13.01%
2020-07-29 APAM CWH n 35.06 35.48 81 36.23 3.34% 5.02%
2020-07-28 DOOO SQZ y 44.17 45.6 84 44.78 1.38% 6.34%
2020-07-28 AXNX CWH n 41.85 42.13 85 42.36 1.22% 5.73%
2020-07-31 CODX CWH n 23.79 24 99 24 0.88% 4.58%
2020-07-28 AMKR SQZ y 13.65 14.33 86 13.595 -0.4% 15.75%
2020-07-30 CROX SQZ y 37.38 37.54 84 35.94 -3.85% 6.18%
2020-07-27 ARCB CWH n 31.73 32.44 83 30.39 -4.22% 5.67%
2020-07-27 SPTN SQZ y 22.16 23.28 91 21.025 -5.12% 8.03%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday July 31, 2020
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
FSK 16.08 2,593,868 FS KKR Capital Corp. Asset Management 98 15.90
INSG 13.90 5,937,700 Inseego Corp. Communication Equipment 94 13.48
SGRY 16.69 898,226 Surgery Partners - Inc. Medical Care Facilities 90 15.27
CTSO 11.74 879,476 Cytosorbents Corporation Medical Devices 89 9.58
RAD 18.64 5,827,026 Rite Aid Corporation Pharmaceutical Retailers 88 15.16
INFN 8.14 4,297,182 Infinera Corporation Communication Equipment 88 7.89
UNIT 10.31 2,524,300 Uniti Group Inc. REIT - Industrial 88 9.90
GLUU 10.84 6,636,812 Glu Mobile Inc. Electronic Gaming & Multimedia 85 9.44
ADTN 12.89 510,818 ADTRAN - Inc. Communication Equipment 82 12.42
MEET 6.30 1,689,824 The Meet Group - Inc. Internet Content & Information 82 6.23
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 26428.3
 -0.16% -7.39% Up
NASDAQ 10745.3
 3.69% 19.76% Up
S&P 500 3271.12
 1.73% 1.25% Up
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
NASDAQ Composite NASDAQ Composite
24.87		 NASDAQ Composite
17.42		 NASDAQ Composite
19.76
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Silver
 Silver
 Financial Data & Stock Exchanges
Most Improved Industry (by change in technical rank2)
Beverages - Wineries & Distilleries
61		 Beverages - Wineries & Distilleries
50		 Residential Construction
98		 Copper
136
Charts of each industry rank and performance over 12 months are available on the site

 

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