Breakoutwatch Weekly Summary 10/24/20

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Weekly Commentary
NASDAQ Continues in Cup and Handle Pattern

The NASDAQ Composite is moving sideways in a shallow handle. Maximum droop from pivot to handle low was 5% and for the week the index lost 1.1%. A late rally on Friday did give a hint that the index may have started to ascend the right side of the handle, but volume was well below average showing only weak support for the move.

Continued failure to reach agreement on a stimulus bill means that we are unlikely to see the economy get a boost before the election. So unless there is a sudden breakthrough, or some other exogenous surprise, the markets will have little reason to change from the sideways trend.
NASDAQ Chart
Breakouts were limited in number and performance but the average for CWH breakouts shown in the table below is considerably reduce by a major selloff by CYBE on Friday which lost 32%. If CYBE is excluded from the average, then CWH stocks gained 3.9%, on average.

There were 2 High Tight Flag breakouts. HTF breakouts are rare but we have seen an increasing number over the last weeks due to the V-shaped recovery in some stocks. Gamestop (GME) and The Container Store (TCS) are clearly the beneficiary of the Covid shelter at home phenomenon and increased online purchasing.
Chart of the Week
ChemoCentryx, Inc. [CCXI] is on our Cup and Handle watchlist and is showing excellent handle progression with two strong up days on above average volume since the handle low on Wednesday

CCXI 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 10/19/20
List Breakouts Avg. Gain
CWH 6 -2.32
SQZ 1 -1.58
HTF 2 1.29
HSB
0
DB
0
Breakouts Detail for Week Beginning 10/19/20
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2020-10-21 BCOV CWH n 12.33 12.46 85 13.9 12.73% 14.44%
2020-10-23 AIMC CWH n 42.71 44.82 88 44.82 4.94% 5.43%
2020-10-20 FIZZ CWH n 85.39 87.39 90 87.07 1.97% 9.39%
2020-10-22 GME HTF n 14.80 14.91 98 15 1.35% 7.23%
2020-10-20 TCS HTF n 9.72 10.05 97 9.84 1.23% 22.22%
2020-10-22 CNCE CWH n 11.84 12.08 81 11.91 0.59% 3.46%
2020-10-19 CREE CWH n 72.90 73.93 85 72.53 -0.51% 5.87%
2020-10-20 OBCI SQZ y 16.45 17.48 98 16.19 -1.58% 9.42%
2020-10-19 CYBE CWH n 39.54 40.32 91 26.25 -33.61% 2.81%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday October 23, 2020
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
KIRK 13.36 3,494,224 Kirkland's - Inc. Specialty Retail 99 11.80
PRTS 13.70 2,666,144 CarParts.com - Inc. Internet Retail 99 13.31
ISEE 6.61 1,389,472 IVERIC bio - Inc. Biotechnology 97 6.00
FUV 7.52 1,275,246 Arcimoto - Inc. Recreational Vehicles 96 6.21
ICLK 8.64 2,045,166 iClick Interactive Asia Group Limited Advertising Agencies 95 8.51
PSTI 11.60 516,622 Pluristem Therapeutics - Inc. Biotechnology 93 9.87
GPRE 17.38 672,456 Green Plains - Inc. Specialty Chemicals 93 16.16
ECOM 18.75 639,750 ChannelAdvisor Corporation Software - Application 92 18.08
BLDP 19.21 6,536,650 Ballard Power Systems - Inc. Specialty Industrial Machinery 91 16.00
IDT 11.86 547,362 IDT Corporation Class B Telecom Services 91 10.44
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 28335.6
 -0.95% -0.71% Up
NASDAQ 11548.3
 -1.06% 28.71% Up
S&P 500 3465.39
 -0.53% 7.26% 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
S&P 500 NASDAQ Composite
11.44		 NASDAQ Composite
33.75		 NASDAQ Composite
28.71
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Home Improvement Retail
 Silver
 Shell Companies
Most Improved Industry (by change in technical rank2)
Waste Management
24		 Auto Parts
37		 Restaurants
85		 Residential Construction
121
Charts of each industry rank and performance over 12 months are available on the site

 

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