Breakoutwatch Weekly Summary 09/19/20

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Weekly Commentary
Sector Rotation out of Large Cap Tech Creates Breakout Opportunities

The three major indexes continued their decline this week as investors continued to take profits from the large cap tech stocks and our market trend indicators continued to point downwards. The NASDAQ Composite and S&P 500 gave up 0.6% each and the DJI remained essentially flat with a loss of just 0.03%. The NASDAQ rallied earlier in the week but failed to sustain a rally above its 50 day moving average. In contrast to the large cap indexes, the Russel 2000 gained 2.5% reflecting the losing attraction of big cap tech stocks and signalling a rotation into small cap and cyclical investments.

NASDAQ Chart
The rotation provided an opportunity for an unusually large number of breakouts, despite the negative trend of our major trend indicators. Breakouts from a Volatility Squeeze pattern dominated the week with 15breakouts. The steep rise of the markets has created several High Tight Flag situations and we saw 6 HTF breakouts this week.
Chart of the Week
Speaking of High Tight Flag situations, ZOOM communications (ZM), a darling of tech stocks since the lock down,  is bucking the trend of rotation out of tech with a 7.5% gain on Friday on 2.5 times average volume. Zoom is building a nice shape in the handle since profit taking in early September and could be set to move higher still.
ZM 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 09/14/20
List Breakouts Avg. Gain
CWH 5 3.17
SQZ 15 3.43
HTF 6 3.39
HSB
0
DB
0
Breakouts Detail for Week Beginning 09/14/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-09-15 GSX SQZ y 91.13 101.12 98 106.52 16.89% 17.61%
2020-09-16 GME HTF n 8.45 8.68 88 9.47 12.07% 15.62%
2020-09-14 GRBK SQZ y 16.29 17.6 91 18.07 10.93% 15.35%
2020-09-18 BLNK SQZ y 7.62 8.39 98 8.39 10.1% 11.42%
2020-09-18 STOK CWH n 35.00 37.48 88 37.48 7.09% 8.14%
2020-09-15 DAVA CWH n 56.68 56.75 80 59.52 5.01% 5.17%
2020-09-16 DAVA SQZ y 56.76 57.18 81 59.52 4.86% 5.02%
2020-09-17 DAVA SQZ y 57.19 58.65 82 59.52 4.07% 4.23%
2020-09-17 MGNX CWH n 30.39 31.22 97 31.6 3.98% 5.33%
2020-09-16 BCYC SQZ y 19.04 20.71 90 19.76 3.78% 13.39%
2020-09-14 RUN HTF n 58.92 59.1 99 60.86 3.29% 8.49%
2020-09-14 VSLR HTF n 32.25 32.41 99 33.24 3.07% 8.71%
2020-09-17 PROF SQZ y 16.68 17.46 88 16.99 1.86% 4.68%
2020-09-18 TFFP HTF n 16.26 16.51 98 16.51 1.54% 1.54%
2020-09-18 MGNX SQZ y 31.23 31.6 98 31.6 1.18% 2.5%
2020-09-18 BSGM SQZ y 8.50 8.6 85 8.6 1.18% 5.88%
2020-09-18 FATE CWH n 38.89 39.25 90 39.25 0.93% 1.43%
2020-09-18 IRTC HTF n 232.58 233.33 97 233.33 0.32% 3.96%
2020-09-18 ADUS SQZ y 96.09 96.33 85 96.33 0.25% 1.38%
2020-09-18 EGO SQZ y 11.79 11.81 88 11.81 0.17% 3.48%
2020-09-14 AIMT HTF n 34.28 34.31 92 34.3 0.06% 0.58%
2020-09-18 MORF SQZ y 28.87 28.88 91 28.88 0.03% 2.32%
2020-09-15 SSRM SQZ y 22.10 22.29 87 22.08 -0.09% 5.29%
2020-09-14 FUL CWH y 50.16 50.36 80 49.58 -1.16% 3.67%
2020-09-14 AEM SQZ y 82.19 86.47 89 80.72 -1.79% 8.57%
2020-09-15 IRBT SQZ y 79.82 83.49 86 78.23 -1.99% 8.82%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday September 18, 2020
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
CLDX 13.43 948,033 Celldex Therapeutics - Inc. Biotechnology 98 12.94
SPAQ 18.24 14,527,203 Spartan Energy Acquisition Corp Class A Shell Companies 90 16.90
SILV 10.71 1,405,192 SilverCrest Metals Inc. Other Industrial Metals & Mining 90 10.16
ATRA 16.30 1,249,569 Atara Biotherapeutics - Inc. Biotechnology 86 15.87
SCPL 15.83 1,141,512 SciPlay Corporation Electronic Gaming & Multimedia 84 15.40
DAN 15.14 1,889,664 Dana Inco Auto Parts 81 13.16
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 27657.4
 -0.03% -3.09% Down
NASDAQ 10793.3
 -0.55% 20.29% Down
S&P 500 3319.47
 -0.64% 2.75% 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 NASDAQ Composite
8.52		 NASDAQ Composite
56.89		 NASDAQ Composite
20.29
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Silver
 Silver
 Shell Companies
Most Improved Industry (by change in technical rank2)
Coking Coal
55		 Beverages - Wineries & Distilleries
81		 Other Precious Metals & Mining
102		 Copper
137
Charts of each industry rank and performance over 12 months are available on the site

 

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