Breakoutwatch Weekly Summary 02/20/21

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Weekly Commentary
Number of Breakouts Falls as Consolidation Continues

The NASDAQ slipped 1.6% this week as Treasury yields rose. The large cap tech stocks have been supported by cheap money and the prospect of rising interest rates caused some selling. The technology sector dropped 1.9%. The index did pick up slightly on Friday after Treasury Secretary Yellen reaffirmed that a big stimulus was needed, and vaccination supplies were expected to double soon.

The stimulus, expected to be about 1.5 Trillion, combined with lowering Covid  rates, will lead to higher employment and a significantly stronger economy. This will lead to some rotation out of the high priced tech stocks into Financial assets and more value oriented stocks.                              

There were just two cup and handle pattern breakouts this week but they did deliver a satisfying 9.4% average gain. The Volatility Squeeze watchlist was the only other pattern to deliver breakouts with a total of eight averaging 3%.
Chart of the Week
Ultragenyx Pharmaceutical Inc. (RARE)

Ultragenix appears to have begun building the right of a handle after substantial profit taking after setting the pivot at 175 six days ago.  Volume was well above average on Friday although it just failed to clear resistance at the 50 day moving average level. RARE is unlikely to break out in the immediate future, but taking a position here could be profitable with a possible 18% upside to the pivot point. See Ultragenyx: Multiple Potential Catalysts Ahead

RARE Chart

New Features this Week

No new features this week
Strategy Suggestions
Our latest strategy suggestions are here.
Breakouts Summary by Watchlist for Week Beginning 02/15/21
List Breakouts Avg. Gain
CWH 2 9.36
SQZ 8 3.03
Breakouts Detail for Week Beginning 02/15/21
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2021-02-16 KZIA SQZ y 10.17 10.36 89 11.7 15.04% 20.65%
2021-02-18 FPRX CWH n 21.43 21.44 95 23.82 11.15% 11.39%
2021-02-17 ATLC CWH n 30.10 30.56 90 32.38 7.57% 7.97%
2021-02-17 MACK SQZ y 7.80 8.27 88 8.18 4.87% 19.87%
2021-02-19 CHWY SQZ y 110.30 113.95 91 113.95 3.31% 5.49%
2021-02-16 WYY SQZ y 12.76 13.56 99 13.18 3.29% 12.07%
2021-02-16 TRIL SQZ y 13.24 13.45 82 13.42 1.36% 3.66%
2021-02-16 MXC SQZ y 9.38 10.34 91 9.43 0.53% 16.2%
2021-02-16 MTSC SQZ y 58.69 58.73 89 58.66 -0.05% 0.19%
2021-02-18 NETE SQZ y 15.37 17.11 90 14.74 -4.1% 16.27%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday February 19, 2021
Symbol BO
Company Industry RS
RMED 9.21 591,128 Ra Medical Systems - Inc. Medical Devices 99 8.62
ZVO 7.30 510,738 Zovio Inc. Education & Training Services 86 6.05
CYH 11.45 3,084,344 Community Health Systems - Inc. Medical Care Facilities 80 8.91
These stocks meet our suggested screening factors for our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
Major Index Summary
Index Value Change Week Change YTD Trend1
Dow 31494.3
0.11% 2.9% Up
NASDAQ 13874.5
-1.57% 7.65% Up
S&P 500 3906.71
-0.71% 4.01% Up
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.
Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones NASDAQ Composite
NASDAQ Composite
NASDAQ Composite
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks

Most Improved Industry (by change in technical rank2)
Oil & Gas E&P
Oil & Gas Drilling
Department Stores
Textile Manufacturing
Charts of each industry rank and performance over 12 months are available on the site


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