Week 32 Breakout Forecast: Short-Term Picks To Give You An Edge

Aug. 05, 2018 3:49 AM ETHEAR, HIVE, INVE, NIHD, PTSI, RLJE, SOI, TNDM, UUUU6 Comments3 Likes

Summary

  • Publishing 2 of the 8 new Week 32 breakout stocks that are available only to subscribers with better than 10% short-term upside potential.
  • Performance Results for the 1-week YTD (+37.40%) and total returns (+78.59%) are significantly outperforming S&P 500.
  • The Momentum Gauges ended the week with signals at low levels of positive momentum (32) and increasing levels of negative momentum (42).
  • Two sampled stocks from last week SOI +16.33% and HBIO +3.64%.
  • Continuing from last year now makes it 58 out of 69 trading weeks (84.05%) with at least one stock move 10% or greater within a 4 or 5 day trading week. Currently 13 consecutive weeks with a 10%+ move.
  • This idea was first discussed with members of my private investing community, Value & Momentum Breakouts. To get an exclusive 'first look' at my best ideas, start your free trial today >>

Breakout Forecast Selections for Week 32:

Market conditions continue with low breakout momentum and worsening negative momentum. The positive momentum gauge has improved slightly above the red at 32 down from a value of 23 at the end of the prior week. These low momentum conditions signal a reduction in momentum selection reliability - be cautious.

The negative momentum gauge increased slightly from a value of 40 last week to a medium value of 42 for negative momentum. The all time low for the positive momentum selection gauge is 8 during week 14 of 2018 and all time high is 120 during August 2017. Last published report: Week 31 Breakout Forecast

My momentum gauges are 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.

Total Return Chart: +78.59%

The Total Return Chart reflects total return of all stocks in the weekly portfolio.

Market fund flow update August 3rd from ETF.com:

Investors added $3.7 billion to U.S.-listed ETFs during the week ending Thursday, Aug. 2, according to the latest data from FactSet. The haul brought year-to-date inflows up to $145.2 billion.

After several weeks of tossing money into the group, investors largely ignored U.S. equity ETFs this week. The group had net outflows of $143 million. SPY, the world's largest ETF topped the outflows list for Thursday, Aug. 2 with nearly $3 billion in redemptions.

On the other hand, U.S. fixed-income ETFs continued to steadily build assets thanks to inflows of $2 billion. International equity ETFs followed, with inflows of $1.3 billion. ~ ETF.com

This week I have selected 8 breakout stocks from the following sectors: 1 services, 1 basic materials, 1 industrial goods, and 4 technology.

The new selections of positive momentum stocks for this week include:

  1. Aerohive Networks (HIVE) - Technology / Communication Equipment
  2. Identive (INVE) - Technology / Computer Peripherals

Thumbnail images of the 2 sampled Breakout Forecast Portfolio Week 32

Caution: 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.

Note: 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 32

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 : Aerohive Networks (HIVE) - Technology / Communication Equipment Price Target: 6.00

Aug-03-18 11:35AM Blockchain Stocks: Tech Stock Report Monitoring 3 Tech Companies in August 2018 ACCESSWIRE
Aug-02-18 03:24PM Edited Transcript of HIVE earnings conference call or presentation 1-Aug-18 9:00pm GMT Thomson Reuters StreetEvents
Aug-01-18 09:00PM Aerohive Networks (HIVE) Q2 Earnings and Revenues Surpass EstimatesZacks

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific.

Pick #2: Identive (INVE) - Technology / Computer Peripherals Price Target: 7.50

Jul-31-18 09:00AM Identiv Sets Second Quarter 2018 Earnings Call for Thursday, August 9, 2018 at 5:00 PM ET GlobeNewswire
Jul-30-18 09:00AM Identiv Launches State-of-the-Art Tamper-Proof RFID Labels for Anti-Counterfeiting and Brand Protection GlobeNewswire

Identiv, Inc. operates as a security technology company that secures and manages access to physical places, things, and information primarily in the Americas, Europe, the Middle-East, and the Asia-Pacific.

2018 Chart: +37.40% YTD

Cumulative return with 1-Week holding period.

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 with portfolio spreadsheets listed in the Tools section, here are the returns through Week 31.

Sample of Winning Portfolio Stocks from Week 30 from across all the portfolios except the Premium Portfolio exclusive to members. Week 31 winning portfolio stocks will be released shortly and include Tandem Diabetes Care (TNDM), Energy Fuels (UUUU), RLJ Entertainment (RLJE), Turtle Beach Corporation (HEAR), NII Holdings (NIHD), P.A.M. Transportation Services (PTSI), and Solaris Oilfield Infrastructure (SOI) and others.

Click the "Follow" button at the top of the page to enjoy free updates and select real-time alerts if you want timely 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 32 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

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

This article was written by

JD Henning profile picture
16.99K Followers
Revealing the best financial models with consistent double digit success

Welcome! I am a Finance PhD, MBA, investment adviser, fraud examiner and certified anti-money laundering specialist with more than 30 years trading and investing stocks and other securities. I'm the founder of Value & Momentum Breakouts.

***

I'm JD Henning, the founder of Value & Momentum Breakouts. I've spent decades studying how to get better returns in the market. I've earned degrees researching markets, and even more importantly, I've spent the time myself as a trader and investor.  I am one of those unusual multi-millionaire, PhD's in finance, former Coast Guard officer with a bunch of certifications ranging from anti-money laundering specialist, investment adviser, to fraud examiner...  who genuinely enjoys helping others do well in the markets.  I'm bringing the fruits of my experience and research to this service.  I am highly accessible to members to answer questions and give guidance.  

***


It's been quite the start of the year for investors. My guess is, after a decade of good times in the market, you’re here looking for some guidance in how to navigate these volatile markets and the uncertainty of the coronavirus and inflationary conditions. You’re in the right place. For the past 5 years I’ve made my trading systems public and helped hundreds of my subscribers navigate and profit from every market downturn and breakout - including the coronavirus crash last year.



***

Value & Momentum Breakouts doesn't stop with the Momentum Gauges® and the Bull/Bear ETF strategy. The service is designed for investors who appreciate having easy access to quick picks from many top quantitative financial models across different types of investing strategies.  Portfolios and selections cover all types of investments:

***

Commodity and Volatility fund trading

Cryptocurrency chart analysis

Long term high-dividend growth stocks

Short term high-frequency breakout stocks

Forensic analysis value stocks

Value enhanced long term growth picks

ETF sector and bull/bear combination trades

Dow mega cap breakout picks

Sector and Index Momentum Gauges® for market timing

***

I share my expertise by generating frequent Value & Momentum Breakout stock portfolios from the different financial algorithms across peer-reviewed financial literature. The best selection of stocks from these algorithms are applied to the Premium Portfolio, beating the S&P 500 for the 3rd straight year in a row with average annual gains of 32.98% through 2020.

***

Try a 2-Week FREE trial and see all the value for yourself.



Follow

Disclosure: I am/we are long SOI. 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.

Recommended For You

Comments (6)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.