Breakoutwatch Weekly Summary 02/06/21

You are receiving this email because you are or were a BreakoutWatch.com subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.
Newsletter Archive: https://www.breakoutwatch.com/content/newsletters

Weekly Commentary
Breakouts gain 7.8% on Average; Stocks Likely to Breakout Tutorial

Traders bought last week's dip and the markets again set new highs. The NASDAQ closed higher in each session delivering a 6% gain for the week. It is clear now that the Biden Covid rescue and stimulus plan will be passed using 'reconciliation', which will ensure that the majority of the 1.9T package will pass and the bull market will continue, barring any external shocks. Fourth quarter earnings were strong, exceeding analysts estimates in aggregate by 15%, so with further stimulus, and vaccination allowing economic activity to improve, the markets are expecting earnings strength to continue.
NASDAQ Chart
Cup and Handle breakouts (10) averaged an 8.8% gain and Volatility Squeeze breakouts (58) did almost as well with an average 0f 7% gain. There were a surprising number of HTF breakouts (7) with a stellar 14% average gain. Readers of How to Make Money in Stocks will recall that this pattern is considered rare, but capable of giving strong gains.
Chart of the Week
The Trade Desk (TTD) is on our list of stocks most likely to breakout out on Monday. I like it because it has 9% to improve before hitting resistance at the left cup level, although I would prefer a longer, deeper handle and above average volume in Friday's trading. Read how I would play this, and other stocks on our "Likely to Close above BoP at Next Session" list below.
TTD Chart
New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.

How to Trade Stocks "Likely to Close above BoP at Next Session"

Here is the list for Friday 2/05 for trading on 2/07
Symbol Company Industry RS Rank Last Close BoP % off BoP
TTD The Trade Desk, Inc. Software - Application 88 855.06 875.00 97.72
SGC Superior Group of Companies, Inc. Apparel Manufacturing 83 25.75 26.48 97.24
CWH Camping World Holdings, Inc. Recreational Vehicles 90 39.72 40.65 97.71
MRNA Moderna, Inc. Biotechnology 97 176.24 185.98 94.76
*These stcocks were selected using our price breakout model. This model correctly selected CWH stocks that met or exceeded their breakout price with 80% probability over Jan. 2019 to Nov. 2020. This does not imply that on any one day, 80% or any of the stocks selected will meet or exceed their breakout price.

Every day we use our price model to select stocks likely to close above their breakout price at the next session. See our 12/19/20 newsletter for a brief tutorial. I don't monitor the market in real time waiting for alerts, so here's how I play stocks on the list.
1. Go to the Daily Report on the website https://www.breakoutwatch.com/content/daily-reports
2. Click through the symbols to see the cup and handle pattern for each stock
3. Pick one or more stocks on the list to trade at the next session
4. Place a market stop order at the breakout price. If the price rises to the breakout price, the stock will be bought and if not you are not out of pocket.
5. If you bought the stock, but it closes below BoP, sell at the next open.
6. If the stock closes above BoP, set a trailing stop using the Trailing Stop Calculator and adjust it each day.
Breakouts Summary by Watchlist for Week Beginning 02/01/21
List Breakouts Avg. Gain
CWH 10 8.84
SQZ 58 7.03
HTF 7 13.78
HSB
0
DB 2 5.39
Breakouts Detail for Week Beginning 02/01/21
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2021-02-01 AVNW CWH n 39.50 41.97 93 54.75 38.61% 46.81%
2021-02-02 PERI SQZ y 15.08 15.23 93 20.43 35.48% 36.67%
2021-02-03 PERI SQZ y 15.24 15.55 93 20.43 34.06% 35.24%
2021-02-04 PERI SQZ y 15.56 16.74 92 20.43 31.3% 32.46%
2021-02-03 PLSE HTF n 35.99 36.62 95 44.15 22.67% 23.34%
2021-02-05 PERI SQZ y 16.75 20.43 93 20.43 21.97% 23.04%
2021-02-01 FVE SQZ y 7.24 7.73 84 8.66 19.61% 20.17%
2021-02-02 APHA HTF n 14.01 14.74 95 16.67 18.99% 24.88%
2021-02-04 VJET HTF n 18.90 19.3 93 22.43 18.68% 21.16%
2021-02-02 IDT CWH n 14.90 15.28 88 17.62 18.26% 21.99%
2021-02-03 REKR HTF n 13.70 14.77 95 16.04 17.08% 25.33%
2021-02-01 FPRX SQZ y 16.73 16.75 97 19.41 16.02% 16.86%
2021-02-02 FPRX SQZ y 16.76 17.77 97 19.41 15.81% 16.65%
2021-02-03 SSL CWH n 11.61 12.93 83 13.39 15.33% 15.76%
2021-02-04 DMTK HTF n 47.13 49.24 96 54.17 14.94% 18.25%
2021-02-04 PRTK SQZ y 6.96 7.57 81 7.86 12.93% 15.42%
2021-02-02 FREQ SQZ y 44.72 47.46 91 50.46 12.84% 13.8%
2021-02-04 FAT SQZ y 7.46 7.82 83 8.35 11.93% 15.73%
2021-02-02 FVE SQZ y 7.74 7.83 85 8.66 11.89% 12.4%
2021-02-02 RARE SQZ y 145.64 153.15 88 162.22 11.38% 12.01%
2021-02-02 BL SQZ y 133.73 138.79 83 148.51 11.05% 11.16%
2021-02-03 DLTH SQZ y 13.22 14.05 81 14.63 10.67% 12.44%
2021-02-02 RYAM SQZ y 7.44 7.98 95 8.2 10.22% 20.3%
2021-02-04 VERU SQZ y 9.90 14.28 96 10.895 10.05% 47.37%
2021-02-04 AEYE DB y 26.98 29.65 93 29.6 9.71% 13.23%
2021-02-02 ATLC SQZ y 27.29 28.5 92 29.88 9.49% 10.3%
2021-02-03 SOLO SQZ y 8.02 8.13 97 8.69 8.35% 21.45%
2021-02-01 QFIN CWH n 18.38 18.51 83 19.91 8.32% 10.99%
2021-02-04 BL SQZ y 137.26 142.89 83 148.51 8.2% 8.3%
2021-02-03 JOE SQZ y 49.51 50.32 91 53.41 7.88% 8.02%
2021-02-05 ARWR SQZ y 83.93 90.47 83 90.47 7.79% 9.25%
2021-02-04 SOLO SQZ y 8.14 9.48 97 8.69 6.76% 19.66%
2021-02-04 HZN SQZ y 9.34 9.57 93 9.96 6.64% 7.39%
2021-02-04 CLDX CWH n 22.43 23.09 98 23.8 6.11% 13.95%
2021-02-05 FVE CWH y 8.17 8.66 86 8.66 6% 6.49%
2021-02-02 ALTM SQZ y 51.67 51.74 97 54.76 5.98% 7.41%
2021-02-03 FTCH SQZ y 62.94 67 96 66.51 5.67% 10.35%
2021-02-04 EVRI SQZ y 14.42 14.83 87 15.21 5.48% 6.66%
2021-02-02 AZUL SQZ y 22.89 23.5 85 24.14 5.46% 6.86%
2021-02-04 MCRB SQZ y 25.76 26.34 97 27.04 4.97% 7.73%
2021-02-03 ATLC SQZ y 28.51 29.53 92 29.88 4.81% 5.58%
2021-02-05 AIRT SQZ y 22.61 23.61 84 23.61 4.42% 6.02%
2021-02-02 VLRS SQZ y 12.07 12.18 83 12.6 4.39% 5.97%
2021-02-05 LPI HTF n 28.66 29.9 88 29.9 4.33% 5.37%
2021-02-04 ALLK SQZ y 138.29 141.6 83 144.14 4.23% 4.23%
2021-02-04 DLTH SQZ y 14.06 14.1 84 14.63 4.05% 5.73%
2021-02-05 HZN SQZ y 9.58 9.96 94 9.96 3.97% 4.7%
2021-02-03 MN SQZ y 6.29 6.45 88 6.51 3.5% 5.72%
2021-02-02 SAIL SQZ y 57.21 58.99 88 59.13 3.36% 6.61%
2021-02-04 MESA SQZ y 6.93 7.21 83 7.13 2.89% 6.2%
2021-02-05 MCRB SQZ y 26.35 27.04 97 27.04 2.62% 5.31%
2021-02-04 VLRS SQZ y 12.28 12.5 83 12.6 2.61% 4.15%
2021-02-01 WORK SQZ y 42.18 42.51 83 43.24 2.51% 2.73%
2021-02-05 NSYS SQZ y 8.09 8.27 85 8.27 2.22% 3.08%
2021-02-05 RHP SQZ y 69.01 70.38 80 70.38 1.99% 2.95%
2021-02-05 ALLK SQZ y 141.61 144.14 83 144.14 1.79% 1.79%
2021-02-02 WORK SQZ y 42.52 42.73 82 43.24 1.69% 1.9%
2021-02-03 MGNX SQZ y 22.51 23.13 84 22.86 1.55% 6.18%
2021-02-05 NBR CWH n 77.21 78.12 93 78.12 1.18% 2.32%
2021-02-03 WORK SQZ y 42.74 43.04 82 43.24 1.17% 1.38%
2021-02-02 HCAP SQZ y 7.83 7.91 88 7.92 1.15% 2.17%
2021-02-05 XOMA SQZ y 43.34 43.83 85 43.83 1.13% 1.45%
2021-02-04 VER DB y 36.89 37.16 98 37.28 1.06% 1.57%
2021-02-04 MN SQZ y 6.46 6.48 90 6.51 0.77% 2.94%
2021-02-05 VLRS SQZ y 12.51 12.6 83 12.6 0.72% 1.28%
2021-02-04 PK SQZ y 18.08 18.11 82 18.15 0.39% 3.54%
2021-02-05 VER SQZ y 37.17 37.28 98 37.28 0.3% 0.81%
2021-02-05 PK SQZ y 18.12 18.15 81 18.15 0.17% 2.98%
2021-02-04 HCAP CWH n 7.92 7.93 89 7.92 0% 1.01%
2021-02-03 AI SQZ y 146.89 147.05 99 146.6 -0.2% 7.75%
2021-02-03 HEXO HTF n 7.82 7.93 94 7.8 -0.26% 4.48%
2021-02-04 AI SQZ y 147.06 154.37 99 146.6 -0.31% 7.62%
2021-02-04 FTCH SQZ y 67.01 67.13 96 66.51 -0.75% 3.64%
2021-02-01 NLS CWH n 25.18 26.58 96 24.79 -1.55% 9.41%
2021-02-04 CPA SQZ y 81.94 82.93 80 79.7 -2.73% 4.47%
2021-02-03 ACB CWH n 13.32 13.75 83 12.8 -3.9% 6.23%
2021-02-01 AHCO SQZ y 38.28 40.15 90 35.74 -6.64% 8.62%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday February 05, 2021
Symbol BO
Price		 BO
Vol.		 Company Industry RS
Rank		 Last
Close
WYY 14.99 778,110 WidePoint Corporation Information Technology Services 99 13.10
CYH 11.45 3,093,798 Community Health Systems - Inc. Medical Care Facilities 83 9.22
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 31148.2
 3.89% 1.77% Up
NASDAQ 13856.3
 6.01% 7.51% Up
S&P 500 3886.83
 4.65% 3.48% 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
16.49		 NASDAQ Composite
25.84		 NASDAQ Composite
7.51
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Luxury Goods
 Uranium
 Silver
Most Improved Industry (by change in technical rank2)
Silver
50		 Internet Retail
46		 Department Stores
130		 Department Stores
136
Charts of each industry rank and performance over 12 months are available on the site

 

If you received this newsletter from a friend and you would like to receive it regularly please go to the BreakoutWatch.com site and you will then be able to register to receive the newsletter.

Copyright (c) 02/06/2021 NBIcharts, LLC dba BreakoutWatch.com. All rights reserved.
" BreakoutWatch," the BreakoutWatch.com "eye" logo, and the slogan "tomorrow's breakouts today" are service marks of NBIcharts LLC. All other marks are the property of their respective owners, and are used for descriptive purposes only.

BreakoutWatch is not affiliated with Investor's Business Daily or with Mr. William O'Neil. Our site, research and analysis is supported entirely by subscription and is free from advertising.