Breakoutwatch Weekly Summary 02/27/21

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Weekly Commentary
NASDAQ Retreats as Long Term Rates Rise

The NASDAQ fell 4.9% this week as rising long term interest rates rose, the 10-year note hitting 1.6% at its peak. This is higher than the S&P 500's yield of 1.5%. The rise in the markets has been fueled, in part, by a search for higher returns than are available in fixed interest assets, so higher rates will be more attractive to risk sensitive investors. This hurt the high flying tech stocks that represent 50% of the NASDAQ top 100. Rates did fall back slightly on Friday, allowing a recovery in the NASDAQ from a support level to close 0.6% higher for the day.

Fed Chairman Powell addressed inflation fears when he told Congress this week that the rising rates were in anticipation of a strong economic recovery but that it could be 2-3 years before the Fed's target of 2% inflation is reached.
Since most breakouts come from NASDAQ listed stocks, this was a disappointing week for breakouts with there being only 11, with most losing ground by the end of the week. The standout performer was MERC with a 9.8% gain.
Chart of the Week
Five9, Inc. (FIVN)

Five9 is a software company developing cloud (internet) based services. On February 19, it set a high handle (meaning the pivot was above the left cup) which was followed by heavy profit taking. Since setting the handle low it has recovered to within 5% of its pivot and traded on double its 50 day volume on Friday. FIVN is worth watching in the coming week.
FIVN 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 02/22/21
List Breakouts Avg. Gain
CWH 3 -3.19
SQZ 8 -5.84
Breakouts Detail for Week Beginning 02/22/21
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2021-02-25 MERC CWH n 14.00 14.1 80 15.37 9.79% 11.96%
2021-02-24 MAT SQZ y 19.52 19.71 80 20.2 3.48% 5.23%
2021-02-23 VER CWH n 38.26 38.33 98 39 1.93% 6.29%
2021-02-22 ATI SQZ y 19.39 20.46 81 19.66 1.39% 13.72%
2021-02-24 DCP SQZ y 21.71 22.67 81 21.86 0.69% 5.2%
2021-02-22 GES SQZ y 25.24 26.45 86 25.21 -0.12% 9.55%
2021-02-24 AMSC SQZ y 24.46 25.31 92 23.79 -2.74% 3.76%
2021-02-22 RYI SQZ y 14.64 15.58 87 12.73 -13.05% 14.21%
2021-02-22 KZIA SQZ y 11.71 11.94 90 9.99 -14.69% 12.66%
2021-02-22 FFHL CWH n 12.96 14.76 95 10.2 -21.3% 32.1%
2021-02-22 CLF SQZ y 17.03 17.39 92 13.34 -21.67% 5.46%
*RS Rank on day before breakout.
Top Rated Cup and Handle Stocks as of Friday February 26, 2021
Symbol BO
Company Industry RS
No stocks met 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 30932.4
-1.78% 1.06% Down
NASDAQ 13192.3
-4.92% 2.36% Down
S&P 500 3811.15
-2.45% 1.47% Down
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)
Travel Services
Travel Services
Department Stores
Department Stores
Charts of each industry rank and performance over 12 months are available on the site


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