MDA Breakout Stocks Week 37 - September 2022: Short-Term Picks To Give You An Edge

Summary

  • Two new Breakout Stocks for Week 37 with better than 10% short-term upside potential and one Dow 30 pick. Average cumulative returns now up to +117.7% YTD.
  • This week two picks beat 10% gains in less than week with top gains in PRCT +25.7% and TUSK +10.5% with VZIO at +9.1% peak gains.
  • The streak of weekly picks gaining over 10% in less than a week of trading days increased to 223 out of 277 trading weeks (80.5%) not counting multiple gainers.
  • All the V&M Portfolios are beating the S&P 500 YTD. Plus, new July midyear picks are also higher Piotroski-Graham +11.2%, Neg Forensic +36.8%, YTD Bounce/Lag +51.3%.
  • The MDA breakout picks continue to beat the S&P 500 into 6 consecutive years delivering a CAGR of +31.8% and 718.1% compounding returns through 2022. In 2021 returns were +70.5%.
  • Looking for a portfolio of ideas like this one? Members of Value & Momentum Breakouts get exclusive access to our model portfolio. Learn More »

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Introduction

The Weekly Breakout Forecast continues my doctoral research analysis on MDA breakout selections over more than 7 years. This subset of the different portfolios I regularly analyze has now exceeded 260 weeks of public selections as part of this ongoing live forward-testing research. The frequency of 10%+ returns in a week is averaging over 4x the broad market averages in the past 5+ years.

In 2017, the sample size began with 12 stocks, then 8 stocks in 2018, and at members' request since 2020, I now generate only 4 selections each week. In addition 2 Dow 30 picks are provided, as well as a new active ETF portfolio that competes against a signal ETF model. Monthly Growth & Dividend MDA breakout stocks continue to beat the market each year as well. I offer 11 top models of short and long term value and momentum portfolios that have beaten the S&P 500 since my trading S&P 500 since my trading studies were made public.

Market Outlook

The Momentum Gauges®, economic events, and weekly market outlook are now separated into weekly articles here which also includes my new weekly Technical Market update videos. Currently we are in the biggest short squeeze in 5 months as institutions cover record hedge positions:

SPY long term chart

FinViz.com VMBreakouts.com

Momentum Gauges® Stoplight signals for Week 37 with gauges turning more positive and monthly gauges consecutively negative from November 2021. Short term conditions look increasingly positive.

Momentum Gauge stoplight

VMBreakouts.com

Current Returns

In a quick study of the MDA breakout selections YTD there are 93 picks in 36 weeks beating the S&P 500. 59 are picks beating the S&P 500 by over 10%+ in double digits. Leading MDA gainers include (CLFD) +65.5%, (VRDN) +76.0%, (TDW) +107.9, (COCO) +51.1%, (HOWL) +51.1%. Fully 110 weekly picks for 2022 are beating the Nasdaq YTD that is down -22.6%.

MDA breakout returns YTD

VMBreakouts.com

Additional background, measurements, and high frequency breakout records on the Weekly MDA Breakout model is here: Value And Momentum MDA Breakouts +70.5% In 52 Weeks: Final 2021 Year End Report Card

2022 First-half weekly return results

First half returns with all weekly returns on the V&M Dashboard

Weekly MDA breakout returns first half 2022

VMBreakouts.com

Red weekly color indicates negative Market Momentum Gauge signals. MDA breakout selections outperform when the market signal is positive and daily negative values are below 40 level.

Historical Performance Measurements

Historical MDA Breakout minimal buy/hold returns are at +70.5% YTD when trading only in the positive weeks consistent with the positive Momentum Gauges® signals. Remarkably, the frequency streak of 10% gainers within a 4- or 5-day trading week continues at highly statistically significant levels above 80% not counting frequent multiple 10%+ gainers in a single week.

Annual returns of the MDA breakouts

VMBreakouts.com

Longer term many of these selections join the V&M Multibagger list now at 113 weekly picks with over 100%+ gains, 54 picks over 200%+, 18 picks over 500%+ and 11 picks with over 1000%+ gains since January 2019 such as:

  • Celsius Holdings (CELH) +2153.8
  • Enphase Energy (ENPH) +2,110.4%
  • Intrepid Potash (IPI) +1,275.9%
  • Northern Oil & Gas (NOG) +1076.4%
  • Trillium Therapeutics (TRIL) +1008.7%

More than 200 stocks have gained over 10% in a 5-day trading week since this MDA testing began in 2017. A frequency comparison chart is at the end of this article. Readers are cautioned that these are highly volatile stocks that may not be appropriate for achieving your long term investment goals: How to Achieve Optimal Asset Allocation

The Week 37 - 2022 Breakout Stocks for next week are:

The picks for next week consist of 1 Energy and 3 Technology sector stocks. These stocks are released to members in advance every Friday morning near the open for the best gains. Prior selections may be doing well, but for research purposes I deliberately do not duplicate selections from the prior week. These selections are based on MDA characteristics from my research, including strong money flows, positive sentiment, and strong fundamentals - but readers are cautioned to follow the Momentum Gauges® for the best results. These picks are up over +3.2% for member from release Friday.

  1. Riot Blockchain (RIOT) - Technology / Software - Application
  2. Cactus (WHD) - Energy / Oil & Gas Equipment & Services

Riot Blockchain - Technology / Software - Application

RIOT chart

FinViz.com

Price Target: $14.00/share (See my FAQ #20 on price targets)

Sep-09-22 04:20PM Why Crypto Miners Hut 8, Riot Blockchain, and Bitfarms Are Surging Today Motley Fool
Sep-08-22 02:20PM Why Shares of Riot Blockchain Are Rising Today Motley Fool
Sep-06-22 04:30PM Riot Announces August 2022 Production and Operations Updates GlobeNewswire
Sep-06-22 06:00AM INSIGHT-Low-carbon bitcoin? Crypto miners' green power talk angers Texas locals Reuters
Sep-01-22 12:02PM Marathon Digital Holdings Stock Struggles As Bitcoin Tumbles; Is MARA Stock A Buy Now? Investor's Business Daily
Sep-01-22 08:42AM Implied Volatility Surging for Riot Blockchain Stock Options Zacks

(Source: Company Resources)

Riot Blockchain, Inc., together with its subsidiaries, focuses on bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments. As of December 31, 2021, it operated approximately 30,907 miners.

RIOT Data Report

StockRover.com

Cactus - Energy / Oil & Gas Equipment & Services

WHD Chart

FinViz.com

Price Target: $55.00/share (See my FAQ #20 on price targets)

Aug-07-22 08:28AM Cactus' Dividend Will Be $0.11 Simply Wall St.
Aug-04-22 06:45AM Cactus Announces Second Quarter 2022 Results Business Wire
Jul-19-22 04:30PM Cactus Announces Timing of Second Quarter 2022 Earnings Release and Conference Call Business Wire
Jun-27-22 07:16AM Cactus' investors will be pleased with their 22% return over the last three years Simply Wall St.
Jun-21-22 02:43AM Wasatch Global: Cactus was One of Our Top Contributors for the Quarter Insider Monkey

(Source: Company Resources)

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States, Australia, China, and the Kingdom of Saudi Arabia. The company's principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks, zipper manifolds, and production trees. It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, repair, and safe handling of the wellhead and pressure control equipment; and repair and refurbishment services.

Rover data report on WHD

StockRover.com

Top Dow 30 Stocks to Watch for Week 37

First, be sure to follow the Momentum Gauges® when applying the same MDA breakout model parameters to only 30 stocks on the Dow Index. Conditions have delivered the worst first half to the stock market since 1970. Second, these selections are made without regard to market cap or the below-average volatility typical of mega-cap stocks that may produce good results relative to other Dow 30 stocks.

The most recent picks of weekly Dow selections in pairs for the last 5 weeks:

Symbol Company Current % return from selection Week
(AAPL) Apple, Inc. -1.16%
(CVX) Chevron Corp. +1.87%
(JPM) JPMorgan Chase & Co. +3.92%
(DOW) Dow Inc. -7.25%
MRK Merck & Co. -2.53%
(AMGN) Amgen, Inc. -1.12%
(MCD) McDonald's Corporation -0.44%
(MRK) Merck & Co. -2.53%
(CRM) Salesforce -14.50%
(MSFT) Microsoft Corporation -6.52%

If you are looking for a much broader selection of large cap breakout stocks beyond the weekly stocks, I recommend these long term portfolios. The new mid-year selections were released to members to start July:

Piotroski-Graham enhanced value -

  • July up +11.15%
  • January portfolio beating S&P 500 by +26.67% YTD.

Positive Forensic -

  • July down -4.65%
  • January Positive Forensic beating S&P 500 by +2.50% YTD.

Negative Forensic -

  • July up +36.80%
  • January Negative Forensic beating S&P 500 by +14.62% YTD

Growth & Dividend Mega cap breakouts -

  • August up +6.10%
  • January portfolio beating S&P 500 by +10.92% YTD

These long term selections are significantly outperforming many major Hedge Funds and all the hedge fund averages since inception. Consider the actively managed ARK Innovation fund down -52.9% YTD, Tiger Global Management -52% YTD, RTW Investment Group -34% YTD.

The Dow pick for next week is:

Microsoft

Microsoft has made a breakout of the negative channel from August and although all the proxy sentiment and money flow indicators are still negative they are improving sharply toward early breakout. Institutions are slight net buyers in the current quarter again and the short float remain very low 0.5%.

Finviz Chart MSFT

FinViz.com VMBreakouts.com

Background on Momentum Breakout Stocks

As I have documented before from my research over the years, these MDA breakout picks were designed as high frequency gainers.

These documented high frequency gains in less than a week continue into 2020 at rates more than four times higher than the average stock market returns against comparable stocks with a minimum $2/share and $100 million market cap. The enhanced gains from further MDA research in 2020 are both larger and more frequent than in previous years in every category. ~ The 2020 MDA Breakout Report Card

The frequency percentages remain very similar to returns documented here on Seeking Alpha since 2017 and at rates that greatly exceed the gains of market returns by 2x and as much as 5x in the case of 5% gains.

MDA frequency breakout charts

VMBreakouts.com

The 2021 and 2020 breakout percentages with 4 stocks selected each week.

MDA frequency breakout charts 2020 and 2021

VMBreakouts.com

MDA selections are restricted to stocks above $2/share, $100M market cap, and greater than 100k avg daily volume. Penny stocks well below these minimum levels have been shown to benefit greatly from the model but introduce much more risk and may be distorted by inflows from readers selecting the same micro-cap stocks.

Conclusion

These stocks continue the live forward-testing of the breakout selection algorithms from my doctoral research with continuous enhancements over prior years. These Weekly Breakout picks consist of the shortest duration picks of seven quantitative models I publish from top financial research that also include one-year buy/hold value stocks. Remember to follow the Momentum Gauges® in your investing decisions for the best results.

All the V&M portfolio models are beating the market indices through the worst 6 month start since 1970. New mid-year value portfolios are up sharply to start the next long term buy/hold period.

Portfolio Returns YTD

VMBreakouts.com

The final 2021 returns for the different portfolio models from January of last year are shown below.

2021 VM Breakout portfolio returns

VMBreakouts.com

All the very best to you, stay safe and healthy and have a great week of trading!

JD Henning, PhD, MBA, CFE, CAMS



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This article was written by

JD Henning profile picture
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Revealing the best financial models targeting 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.  

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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.



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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:

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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.

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Disclosure: I/we have a beneficial long position in the shares of BOIL either through stock ownership, options, or other derivatives. 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.

Additional disclosure: I continue to follow the Market Momentum Gauge® and Sector Momentum Gauge® signals. I adjust my exposure ahead of weekends and holidays to minimize the risk from these high volatility 3x funds that may not be appropriate investments for your portfolio. Readers are highly encouraged to consider your own optimal asset allocation strategies to diversify risks and enhance returns. I have been mostly in cash this year with many weeks of negative Momentum Gauge signals.

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