Weekly Newsletter 10/03/08
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You are receiving this email because you are or were a BreakoutWatch.com 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.
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  

It would be the height of conceit if we thought we had anything to add to the debate raging on the economy. There are already ample views expressed and some of the best are on the RGE monitor and Big Picture. We merely note that the market registered its opinion on the bailout plan by plunging on Friday on a classic "buy the rumor sell the news" play. Moreover, the TED spread actually increased on Friday indicating that the perceived risk of default on inter-bank loans is increasing. This could be an early sign that the Paulson plan will not achieve the results that were advertised!

TED Spread
Source: Bloomberg

Indications are that the markets will continue to dive until the TED spread returns to normal values. There are rumors that there will be a coordinated rate cut by the Fed and European Banks announced over the weekend. Whether or notthis will have the desired effect we don't know.

Eventually there will be a bottom, however. It may come next week for all we know if the TED spread does indeed narrow, so it's essential to maintain your watchlists of stocks that you would buy on breakout . Our tip this week shows you how you can build and maintain those watchlists. Think of us as an investment Cialis so you can be ready when the time is right!

 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 10325.4 -7.34% -22.16%
NASDAQ 1947.39 -10.81% -26.58%
S&P 500 1099.23 -9.4% -25.14%
Russell 2000 619.4 -12.12% -19.14%
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones
-7.34 %
Russell 2000
-5.9 %
Russell 2000
-13.22 %
Russell 2000
-19.14 %
 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 6 24.31 4.26% -4.93%
Last Week 3 24.85 4.72% 0.38%
13 Weeks 344 25.31 12.69%
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 95
Top Technical NDN 99 Cents Only Stores 70
Top Fundamental EZPW Ezcorp Inc Cl A 56
Top Tech. & Fund. EZPW Ezcorp Inc Cl A 56
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
Best Overall SH ProShares Short S&P500 ETF 43
Top Technical SH ProShares Short S&P500 ETF 43
Top Fundamental SH ProShares Short S&P500 ETF 43
Top Tech. & Fund. SH ProShares Short S&P500 ETF 43
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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