Breakoutwatch Weekly Summary 12/18/21

You are receiving this email because you are or were a subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.
Newsletter Archive:

Weekly Commentary
NASDAQ in Bearish Head and Shoulders Top Pattern

The NASDAQ confirmed a Head and Shoulders Top pattern on Tuesday when the index closed below the neckline (see HST Methodology). A relief rally followed on Wednesday, probably provoked by short covering, following Fed Chairman Powell's promise to keep interest rates low until tapering of bond purchases is completed, which is expected to be in March 2022. Concerns that rising inflation and rapidly expanding infections from the Omicron strain would hurt production and further interrupt supply lines then took over, and the index closed for a loss of 3% on Friday. Hopes for a Santa Claus rally now seem diminished although the negative real  interest rate environment could encourage margin borrowing.

Chart of the Week
ProPhase Labs, Inc (PRPH)

ProPhase Labs is demonstrating a constructive handle after profit taking following the setting of the pivot and now a resurgence of buying with above average volume on Friday.
PRPH 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 12/13/21
List Breakouts Avg. Gain
CWH 4 -0.8
SQZ 19 2.3
Breakouts Gaining at Least 5% for Week Beginning 12/13/21
Brkout Date Symbol Base Squeeze Brkout Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
2021-12-17 ACY SQZ y 41.11 45.49 99 45.49 10.65% 22.16%
2021-12-16 PHI CWH n 34.96 35.5 87 37.15 6.26% 7.87%
*RS Rank on day before breakout.
CwH Stocks Likely to Close above BoP at Next Session*
Symbol Company Industry RS Rank Last Close BoP % off BoP
PRPH ProPhase Labs, Inc. Drug Manufacturers - Specialty & Generic 86 7.29 7.48 97.46
ICCH ICC Holdings, Inc. Insurance - Specialty 81 17.395 17.45 99.68
*These stocks were selected using our CWH price breakout model. This model selects stocks likely to close above the breakout price at the next session. When backtested over the three years beginning January 2019 until October 28, 2021, 80% of the stocks selected closed above their breakout price. This does not mean that on any day, 80% of the stocks selected will breakout, but it is the expectation over an extended period of time.
/home/breakoutwatch/public_html/model/disc/2021-12-17.html could not open /home/breakoutwatch/public_html/model/disc/2021-12-17.html
Top Rated Cup and Handle Stocks as of Friday December 17, 2021
Symbol BO
Company Industry RS
RFP 14.27 723,795 Resolute Forest Products Inc. Paper & Paper Products 94 13.07
GFI 11.79 7,749,566 Gold Fields Limited Ameri Gold 85 10.41
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 35365.4
-1.68% 15.55% Up
NASDAQ 15169.7
-2.95% 17.7% Down
S&P 500 4620.64
-1.94% 23.02% 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 S&P 500
S&P 500
S&P 500
Best Performing Industry
1 Week 3 Weeks 13 Weeks 26 Weeks
Residential Construction
Most Improved Industry (by change in technical rank2)
Aerospace & Defense
Aerospace & Defense
Aerospace & Defense
Aerospace & Defense
Charts of each industry rank and performance over 12 months are available on the site


If you received this newsletter from a friend and you would like to receive it regularly please go to the site and you will then be able to register to receive the newsletter.

Copyright (c) 12/18/2021 Proactive Technologies, LLC dba All rights reserved.
" BreakoutWatch," the "eye" logo, and the slogan "tomorrow's breakouts today" are service marks of Proactive Technologies LLC. All other marks are the property of their respective owners, and are used for descriptive purposes only.

BreakoutWatch is not affiliated with Investor's Business Daily or with Mr. William O'Neil. Our site, research and analysis is supported entirely by subscription and is free from advertising.