Breakoutwatch Weekly Summary 02/27/21
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|NASDAQ Retreats as Long Term Rates
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.
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.
No new features this week
Our latest strategy suggestions are here.
|Brkout Date||Symbol||Base||Squeeze||Brkout Price||Brkout Day Close||RS Rank*||Last Close||Current % off BOP||Gain at Intraday High|
|*RS Rank on day before breakout.|
|No stocks met our suggested screening factors for
our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
|Index||Value||Change Week||Change YTD||Trend1|
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.
|1 Week||13 Weeks||26 Weeks||Year-to-Date|
|1 Week||3 Weeks||13 Weeks||26 Weeks|
|Charts of each industry rank and performance over 12 months are available on the site|
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