Breakout Forecast Selections for Week 28:
Market conditions continue with medium volatility. The positive momentum gauge continues with another full week in yellow (medium) nearly unchanged up to 46 from a value of 44 at the end of the prior week. The all time low for the positive momentum selection gauge is 8 during week 14 and all time high is 120 during August 2017. Last published report: Week 26 Breakout Forecast
Total Return Chart: +75.68%
The Total Return Chart reflects total return of all stocks in the weekly portfolio. My momentum gauge is based on the count of the momentum stocks screened as either positive accelerating and negative accelerating stocks based on my research algorithm. The combination of the two different types of momentum categories screened by my algorithm may help validate the quality of the overall market momentum strength. The negative momentum gauge is unchanged from a value of 22 last week indicating low conditions of negative breakdowns.
Market fund flow update July 6 from ETF.com:
ETFs narrowly escaped having back-to-back weekly outflows for a second time this year. After recording a beefy outflow of $21.6 billion last week, U.S.-listed ETFs eked out a meager $670 million net inflow this week. That pushed year-to-date inflows up slightly to $121 million.
This week I have selected 8 breakout stocks from the following sectors: 1 basic materials, 1 industrial goods, 1 technology, 2 services, and 3 healthcare.
The two sample selections from the eight positive momentum stocks for this week include:
- QuinStreet (QNST) - Technology / Internet Software & Services
- The ExOne Company (XONE) - Industrial Goods / Diversified Machinery
These stocks are not necessarily recommended for long term buy/hold unless you are comfortable with very large price swings. As I continue to observe, strong momentum events usually last from one to three weeks and may encounter some substantial decline before returning again to positive gains.
These are the most volatile selections I offer from among all the different Value & Momentum portfolios. Proposed entry points for each of the selected stocks are as close to the highlighted prices in yellow on the charts at market open. All stocks are selected for high short-term breakout results over one to three weeks.
Breakout Stock Selections for Week 28
Note: all breakout stocks are selected based on my algorithm to increase the frequency of 10% gains within a short period of time. Price targets are estimated through an unrelated technical charting process for those who are looking for estimated exit points, however it is possible the momentum in these selections may move well beyond the initial target.
Pick #1: QuinStreet (QNST) - Technology / Internet Software & Services Price Target: 17.00
|Jun-29-18 11:08AM||The Zacks Industry Rank Highlights: GrubHub, MakeMyTrip and QuinStreet Zacks|
|Jun-28-18 11:54AM||Log Onto a Huge Internet Delivery Services Boom Zacks|
QuinStreet, Inc., an Internet performance marketing and media company, provides customer acquisition services for its clients in the United States and internationally. It offers online marketing services to its clients in the form of qualified leads, inquiries, clicks, calls, applications, customers, display advertisements, or impressions through its Websites or third-party publishers.
Pick #2: The ExOne Company (XONE) - Industrial Goods / Diversified Machinery
Price Target: 9.50
|Jun-28-18 02:44PM||3-D Printing Stocks Promised Much But Delivered Little InvestorPlace|
|Jun-25-18 02:20PM||At US$07.79, Is It Time To Buy The ExOne Company (NASDAQ:XONE)? Simply Wall St.|
The ExOne Company develops, manufactures, and markets three-dimensional (3D) printing machines, 3D printed and other products, materials, and services primarily in North America, Europe, and Asia. The company provides various machines that enable designers and engineers to design and produce industrial prototypes and production parts. Its machines include Exerial, S-Max/S-Max+, and S-Print, which are indirect printing machines; and M-Print, M-Flex, and Innovent that are direct printing machines.
2018 Chart: +34.49% YTD
Cumulative return with 1-Week holding period.
Breakout Forecast Performance Results
Total Breakout portfolio returns from 5 weeks ago are listed below to illustrate the rolling returns of prior top performers and total portfolio returns:
|Breakout Forecast||Portfolio gains past 5 weeks / Top 3 Performing Stocks|
|Week 23||+5.80% / (MEIP) +27.46% (GEMP) +18.62% (BVX) +19.38%|
|Week 22||-0.13% / (MNTX) +6.49% (VSTO) +9.22% (TXMD) +3.14%|
|Week 21||+2.89% / (GALT) +47.81% (VTL) +13.28% (RUBI) +14.68%|
|Week 20||+1.26% / (NVTA) +16.72% (ARTX) +10.95% (JT) +12.50%|
|Week 19||+23.00% /(MRNS) +50.20% (QTNT) +71.94% (GEOS) 29.07%|
*The most current weekly portfolio results (including all the value and forensic portfolios) are available to subscribers HERE.
A detailed holding period analysis for Q1 2018 sampled Breakout Stocks is available here for review: Value & Momentum Breakout Stock Returns For Q1 2018
Long Term Portfolio Returns
As a reminder of the other longer term portfolios being tracked and updated regularly, here are the returns through Week 27.
- The Premium Portfolio is an actively managed trading portfolio exclusively for members.
- The Original July Forensic portfolios both Negative and Positive are reaching their full one year returns the end of this month.
- The Russell 3000 anomaly portfolio is the new annual selection starting again this month in July, with last year's annual return at 39.92%.
Planned Portfolio Report Schedule*
The new Piotroski-Graham enhanced value portfolio has been released for July and can be found HERE as part of the alternating formation schedule with the Forensic portfolios as shown below. The annual Russell 3000 anomaly selections for 2018/19 have also just be released and can be found HERE.
Please click the "Follow" button at the top of the page to enjoy free updates on the progress of each of the different portfolios I offer that are outperforming the S&P 500 in each of their respective time periods.
To Subscribe to Value & Momentum Breakouts, click on the link HERE.
I think these breakout stocks will serve you well in Week 28 and beyond. I hope you all do well with these stocks and always diversify to minimize some of the market risks. All the very best, and have a great week of trading!
JD Henning, PhD, MBA, CFE, CAMS
Disclosure: I am/we are long AEZS, AKTS, CFRX, JT, KEM, LOPE, MU, NGVC, SENS, STAA, TXMD, UPL, LABU, UBIO..
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.