June 28, 2020

Powerhouse.LussoNews.Com
Twitter: @ChartBreakouts

Quick Recap:
Due to the large number of new Traders and Investors subscribed to our letter I
wanted to catch everyone up, so we put around 30 stocks featured in this report with
Charts included.

We saw the original leaders (Healthcare, Tech) slow down the past few weeks
and during those few weeks we saw Laggards such as airlines make a move up, then
came straight back down. Bull Markets need to have “Market Rotation” and we saw the
rotation from the leaders to the laggards but it was very brief and buy demand dried up
fast around the overall market as the Laggards ran up too quickly.

The Computer-Software-Desktop industry was very strong as multiple names in

this industry were making new all time highs such as (ADBE, MSFT, CRNC).
Retail-Internet , Auto Manufacturers and Software Stocks remain the best performing
industries % wise year to date. Make sure to follow on twitter for occasional live updates
@ChartBreakouts

We hope everyone stays safe during the volatility in the markets and we hope everyone
and their families stay healthy during this Pandemic.
BJ
This stock is setting up a similar pattern that it broke out from 2 weeks ago
when it had its “Natural Reaction”.

BJ had a big earnings beat when it reported earnings around the end of
May. It also had a Record First Quarter Earnings.

Earnings Per Share was +165% increased compared to last years quarter.
Revenue was up 21% compared to last years quarter.
BMRN
This stock is breaking out of a base from 2016 as it has traded sideways for nearly 4
years. Check out “The Chartist Column”
https://lussosnews.com/2020/06/22/exclusive-biomarin-pharmaceutical-bmrn-is-gaining-
momentum/​ as BRMN was featured in this.

Their most recent earnings report , they BEAT Earnings estimates and Revenue
estimates.

Their Earnings Per Shares increased +343% compared to prior years quarter and had
record results of $502million.

This stock had a very nice move mid June and is now holding up VERY strong while the
market was selling. Not to mention the industry BMRN belongs to is very strong.
CHGG
Recently had a “Natural Reaction” after earnings. Natural reactions are used to shake
out weak hands and then make another move up which we saw it make new all time
highs. It sold off at the beginning of the week with the market but 62.5 area has held
twice now and Thursday it was able to rally off the lows to close near the HOD which is
bullish. Friday we saw a very small range day as well.
CRNC
Had in my opinion outstanding earnings and not to mention is in a very strong industry.

CRNC is in its “First Base” since this new bull market. We prefer to catch stocks coming
out of their 1st or 2nd base so we are watching CRNC and want to see what it does
above $45 area
DPZ
Fell below Channel Friday and looks ugly. Below shorter term moving averages and below 50
day moving average. Alot of red days in a row vs Green days. Potential distribution going on
here
DT
This stock has really good volume and signs of accumulation by big money in our opinion.
It has started its new trend and came out of its first short term base as it looks to make its next
move up. It sold off with the market a little but still above its breakout area. Sometimes stocks
come down and retest the breakout area and confirm it as new support so we are watching that
too.
ELMD
Very low float stock so size according as it can move up or down fast potentially. This stock is
trading very very tight and is in an ASCENDING TRIANGLE .

Earnings Per Shares +75% vs prior years quarter

Sales +18% vs prior years quarter
0 Debt
$9.9mil Cash
Institutional revenue increased 46% reported in recent earnings
ESTC
Trending up with the overall market, it recently had it’s first pullback (natural reaction)
and volume decreased from left to right during this reaction and expanded when it broke
out.Currently we are seeing very little range/volatility movement from this stock as the
market sold off it maintained trading sideways with a small range. Watching this stock
above $95.
FTNT
Flagging on the ​Weekly char​t as it is trading more “Tight” on the ​daily chart​ after
reporting earrings. Volume is not a clear read but I need to see volume expand
massively to around 3 million +shares in 1 day when it does breakout of this daily chart
descending triangle.

Earnings BEAT by 20%

Revenue BEAT $576 Mil vs estimated $557 Mil
Purchased around 10 mill shares of common stock in 1st quarter
Company expects increased in revenue and earnings next quarter
FVRR
1st base in a new trend. It is part of the Retail-Internet industry which is one of the TOP
industries.

Some notes from prior earnings report:

Active users increased 17%
Spend per buyer increased 18%
Revised annual guidance upward.
LGIH & MTH ​ ( Charts on page below )

Both names are in the same industry and have similar charts. MTH the chart on the
bottom has less resistance than LGIH. Both stocks ran up very fast with the overall
market and are now consolidating but we are watching for a breakout of this
consolidation for a next leg up.

LGIH Earnings notes

● LGIH 21 mil float
● Earnings Per Share saw a +129% Increase vs prior years quarter
● Sales saw a 58% increase vs prior years quarter
● They saw a STRONG demand supported by a attractive interest rate
environment
● Record breaking closing in January and February
● Record breaking home closing in first quarter

MTH Earnings notes

● 182% increase in Earnings vs prior years quarter
● 27% sales increase vs prior years quarter
LVGO
Very STRONG stock. Had set a strong base starting in 2019 that it broke out of then
traded sideways for the month of May and recently broke out for a next leg up. It did
have a very STRONG day Friday as the market was weak. Volume was very strong
coming out of its second base with multiple green days in a row showing signs of
accumulation and big money buying.

Be advised Facebook (FB) is in the same industry and has been weak as of late.
MTCH
Breaking out to new high as it trades in an ascending channel. On watch for a potential
momentum breakout of this channel as it is now over $100. This stock was strong
Friday despite a weak market.

Earnings notes:
Increase in subscriber base 15%
Tinder Average subscription increased 28%
Direct revenue increase 31%
NBIX
NBIX is in the ​medical-biomed/biotech​ industry which I feel is a very strong industry.

This stock is breaking out as you can see in the WEEKLY chart below. As it pivots it
looks to trade along the line of least resistance which is Jesse Livermores go-to trade.

This company has been growing at a very nice rate as it had Triple Digit % Quarter
Earnings increase since June 2018 and the sales have been for the most part over
+50% increased each quarter since June 2018. 2019 it had an annual Earnings per
share breakout jump from 0.74 in 2018 to 2.96 in 2019.
NOW
Friday it closed near the highs and Thursday it closed at the highs, both bullish signs as
it bounced off the lower end of this Channel. If market conditions present a healthy
environment NOW will be something to watch.
PFSI
Really nice volume going into mid June then volume began to rise a little too high for my
liking for consideration which potentially could be some distribution going on. I want to
see volume shrink to show weak hands are out , then for it to make its move.

The last 3 earnings reported have all had triple digit % increase Earnings per share with
the most recent reported earnings show an increase of 543% vs last prior years quarter.

Sales have shown a nice increase as well with the last 3 quarters reported all over 70%
increase with the latest reported earnings showing a 191% increase in sales vs prior
years quarter

Earnings notes:
● Recording breaking in alot of categories
● Repurchased $4.3 million of common stock in march
RNG
This has been trading sideways for some time now and attempted to breakout on Friday
but failed and came back down near resistance. If market conditions are healthy this
weak RNG is something to watch as it is making new all time highs
SPLK
Gapped up on earnings and has been consolidating but as of recent gapped above the
range it was trading in and it has held prior resistance as support with Friday closing
near the highs

● In their recent earnings report they stated their Cloud Services revenue
increased 80%
● Stated they added new enterprise customers in 1st quarter
● Zoom (ZM) opted for splunks enterprise security services
● Shopify expanded its splunks offerings by purchasing the newly launched
singlaFx microservices APM platform
● TTWO expanded use of splunks cloud to increase visibility into security of its
gaming environment
TTWO
In the monthly chart below you can see 2 things:
1) It is nearing breaking out of around a 2 year sideways trading range
2) When the XBOX 1 and PS4 released back in 2013 the stock was breaking out, in
the coming months the NEW PS5 and XBOX will be released so there could be a
potential buy demand

Earnings notes:
● Earnings per Share increased 114% vs prior years quarter
● Sales increased 41% vs prior years quarter
● EPS and Sales beat Zacks estimates
● Digital revenue(88% of revenue)increased by 53%
● Recurrent revenue increased 40%
SQ
Weekly Chart breaking out to new all time highs. Strong industry as Paypal has been
strong as well

VRTX
Cup and handle forming.
Earnings per share recent quarter reported was +125% increased vs prior years quarter
Sales increased +76% vs prior years quarter | Expects 67% increase on annual EPS
WDAY

VVNT
RH

Books we recommend reading:

● Think and Trade Like a Champion - Mark Minervini
● How To Make Money In Stocks- William J O’neil
● How To Trade In Stocks- Jesse Livermore

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