Weekly Newsletter 09/26/08
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Market Summary Weekly Breakout Report Top Breakout Choices Top 2nd Chances New Features Tip of the Week
Prior editions of this newsletter with our valuable Tips of the Week are available here.
 Weekly Commentary  
After a week of uncertainty the market rallied late Friday on the expectation that a deal on the Treasury's bailout plan will be reached over the weekend and a relief rally will begin on Monday. At the time of writing, no deal has been reached and it's anyone's guess as to what will transpire now. House Democrats and Republicans are fearful of a taxpayer backlash at the November polls if they vote for the Treasury plan and conservative Republicans have an additional reason to hold off support as it goes against their 'small government' principles and are in open revolt against a White House and Adminstration that has trampled on their conservative fiscal views for the eight years of the Bush presidency.

Apart from ideology, no-one is assured that the plan will work. Prominent economists, including Alan Greenspan and Martin Feldstein have said that $700 billion is not nearly enough and many other economists, including three nobel prizewinners in economics, have opposed it also.
 New Features this Week Additional Value that we added this week
No new features this week
This Week's Top Tip Tips for getting the most out of our site

This tip is no longer available.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD
Dow 11143.1 -2.15% -15.99%
NASDAQ 2183.34 -3.98% -17.68%
S&P 500 1213.27 -3.33% -17.37%
Russell 2000 704.8 -6.45% -7.99%
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones
-2.15 %
Russell 2000
0.95 %
Russell 2000
3.16 %
Russell 2000
-7.99 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Long Distance Carriers Long Distance Carriers REIT - Healthcare Facilities REIT - Healthcare Facilities
 Most Improved Industry (by change in technical rank2)
+ 54
+ 99
Long Distance Carriers
+ 213
Long Distance Carriers
+ 210
Charts of each industry rank and performance over 12 months are available on the site

1The Market Signal is derived from our proprietary market model. The market model is described on the site.
2The site also shows industry rankings based on fundamentals, combined technical and fundamentals, and on price alone. The site also shows daily industry movements.
 Weekly Breakout Report How confirmed breakouts performed this week
# of Breakouts
Period Average1
Max. Gain During Period2
Gain at Period Close3
This Week 2 24.85 4.16% 3.17%
Last Week 109 23.62 11.38% -2.13%
13 Weeks 346 26.15 12.67%
1The average number of breakouts in each week over the previous 13 weeks.
2This represents the return if each stock were bought at its breakout price and sold at its intraday high.
3This represents the return if each stock were bought at its breakout price and sold at the most recent close.
 Top Breakout Choices Stocks on our Cup-and-Handle list with best expected gain if they breakout
Company Name
Expected Gain1
Best Overall FXEN Fx Energy Inc 98
Top Technical SINT Si International 32
Top Fundamental LMIA Lmi Aerospace Inc 43
Top Tech. & Fund. LRN K12 INC 51
1This is the gain predicted by our Expected Gain model if the stock breaks out. Expected Gains for all cup-and-handle stocks are published on our site.
 Top Second Chances Stocks that broke out this week and are still in buyable range
Company Name
Expected Gain1
There were no breakouts on Friday so no top second chances.
1This is the gain predicted by our Expected Gain model after the stock has broken out which uses the volume on breakout as a predictive term. Because the model variance is +/- 38% the expectation can be negative.

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