Breakoutwatch Weekly Summary 01/15/22
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| Cup and Handle Stocks Perform Well
Despite Market Conditions Although the week started well, Wednesday's news that inflation was at an annual rate of 7% curtailed the rally. This followed Chairman Powell's comments at his Tuesday confirmation hearing that asset purchases will end in March and that rates will rise thereafter. Conventional wisdom is that growth stocks suffer in times of inflation and value stocks benefit. This may explain why the NASDAQ, which is dominated by growth stocks is 8% below its Nov. 22 high and is struggling to hold support at the 200 day level. It may also explain why the NASDAQ has the worst performance of the three major indexes, year to date. The prospects of all three indexes, however do not look promising as our tend indicators are negative for all three.  The best performing breakout this
week was iRythm Technologies (IRTC) with a 21% gain.
While it scores well on our technical scale, its fundamental
score of only 4 out of 11 implies it may not go higher in the
short term. Perhaps of more interest is the second place winner
Teck Resources Ltd. (TECK) with strong earnings over the last 12
months and a fundamental score of 7.5 out of 11.
|
Our top pick as the
stock most likely to breakout at the next session is oil and gas
producer PrimeEnergy Resources Corporation (PNRG). Energy
was one of only 2 sectors (the other being Communication
Services) to close higher this week. |
| No new features this week |
|
Our latest strategy
suggestions are here.
|
| List | Breakouts | Avg. Gain |
|---|---|---|
| CWH | 14 | 3.51 |
| SQZ | 16 | 1.55 |
| HTF | 0 | |
| HSB | 0 | |
| DB | 0 |
| Brkout Date | Symbol | Base | Squeeze | Brkout Price | Brkout Day Close | RS Rank* | Last Close | Current % off BOP | Gain at Intraday High |
|---|---|---|---|---|---|---|---|---|---|
| 2022-01-10 | IRTC | CWH | n | 122.20 | 130.04 | 90 | 141.1 | 15.47% | 20.99% |
| 2022-01-10 | TECK | CWH | n | 30.44 | 31.2 | 93 | 33.98 | 11.63% | 14.24% |
| 2022-01-12 | MIST | CWH | n | 7.69 | 7.7 | 92 | 8.24 | 7.15% | 7.15% |
| 2022-01-12 | SCX | SQZ | y | 9.90 | 10.12 | 94 | 10.44 | 5.45% | 7.98% |
| 2022-01-11 | DAC | SQZ | y | 70.41 | 73.63 | 95 | 74.05 | 5.17% | 6.28% |
| *RS Rank on day before breakout. | |||||||||
| Symbol | Company | Industry | RS Rank | Last Close | BoP | % off BoP |
|---|---|---|---|---|---|---|
| PNRG | PrimeEnergy Resources Corporation | Oil & Gas E&P | 97 | 73.98 | 75.04 | 98.59 |
| RES | RPC, Inc. | Oil & Gas Equipment & Services | 91 | 6 | 6.03 | 99.5 |
| UCTT | Ultra Clean Holdings, Inc. | Semiconductor Equipment & Materials | 91 | 60.34 | 60.49 | 99.75 |
| FAT | FAT Brands Inc. | Restaurants | 93 | 11.24 | 11.86 | 94.77 |
| CVBF | CVB Financial Corporation | Banks - Regional | 82 | 23.37 | 23.50 | 99.45 |
| MIDD | The Middleby Corporation | Specialty Industrial Machinery | 87 | 197.27 | 200.85 | 98.22 |
| PARR | Par Pacific Holdings, Inc. | Oil & Gas Refining & Marketing | 85 | 17.6 | 17.96 | 98 |
| KRP | Kimbell Royalty Partners | Oil & Gas E&P | 94 | 15.73 | 16.10 | 97.7 |
| *These stocks were selected using our CWH price breakout model. This model selects stocks likely to close above the breakout price at the next session. When backtested over the three years beginning January 2019 until October 28, 2021, 80% of the stocks selected closed above their breakout price. This does not mean that on any day, 80% of the stocks selected will breakout, but it is the expectation over an extended period of time. | ||||||
| Symbol | BO Price |
BO Vol. |
Company | Industry | RS Rank |
Last Close |
|---|---|---|---|---|---|---|
| TSRI | 14.47 | 1,287,155 | TSR - Inc. | Software - Application | 96 | 11.80 |
| KRP | 16.10 | 546,544 | Kimbell Royalty Partners | Oil & Gas E&P | 94 | 15.73 |
| RES | 6.03 | 1,231,152 | RPC - Inc. | Oil & Gas Equipment & Services | 91 | 6.00 |
| SACH | 6.55 | 500,579 | Sachem Capital Corp. | REIT - Mortgage | 90 | 6.05 |
| WTTR | 7.00 | 595,407 | Select Energy Services - Inc. | Oil & Gas Equipment & Services | 88 | 6.80 |
| CNR | 19.08 | 876,652 | Cornerstone Building Brands - Inc. | Building Products & Equipment | 85 | 16.34 |
| PARR | 17.96 | 555,568 | Par Pacific Holdings - Inc. | Oil & Gas Refining & Marketing | 85 | 17.60 |
| SFL | 8.71 | 1,466,769 | SFL Corporation Ltd | Marine Shipping | 85 | 8.55 |
| WSR | 10.50 | 605,296 | Whitestone REIT | REIT - Retail | 85 | 10.18 |
| LPL | 10.78 | 878,301 | LG Display Co - Ltd AMERIC | Consumer Electronics | 82 | 10.23 |
| These stocks meet our suggested screening factors
for our Cup and Handle Chart Pattern watchlist. See Revised Rules for Trading Cup and Handle Breakouts |
||||||
| Index | Value | Change Week | Change YTD | Trend1 |
|---|---|---|---|---|
| Dow | 35911.8 |
-0.88% | -1.17% | Down |
| NASDAQ | 14893.8 |
-0.28% | -4.8% | Down |
| S&P 500 | 4662.85 |
-0.3% | -2.17% | 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. |
||||
| 1 Week | 13 Weeks | 26 Weeks | Year-to-Date |
|---|---|---|---|
| NASDAQ Composite |
S&P 500 4.28 |
S&P 500 7.76 |
Dow Jones -1.17 |
| 1 Week | 3 Weeks | 13 Weeks | 26 Weeks |
|---|---|---|---|
| REIT - Residential |
Residential Construction |
Industrial Distribution |
Silver |
| Aerospace & Defense 0 |
Aerospace & Defense 0 |
Aerospace & Defense 0 |
Aerospace & Defense 0 |
| Charts of each industry rank and performance over 12 months are available on the site | |||
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