Weekly Newsletter 05/29/09
Login   Trial   Guest
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  

The markets were consolidating within a trading range, but Friday's action, in which the NASDAQ Composite set a new high for the year, suggests they may be ready to move higher following increasing optimism that a recovery could begin as soon as the 3rd quarter.

Last week, the NASDAQ Composite looked in danger of completing a head and shoulders top, but this week it pushed through the 200-dma level and set a new high for the year on Friday. You will often hear us say that resistance becomes support and that's exactly what happened with the 1665 level which proved insurmountable in January. Once that was passed in April, the subsequent pullback found support just below the 1665 level. After a double-test of that support level the index looks ready to test the next resistance level at 1786.

NASDAQ Composite

 New Features this Week Additional Value that we added this week

Email alerts for the new Zacks Strong Buy Watchlist started this week and after a couple of early glitches are now working fine. Unlike our normal email alerts, these alerts are available to Silver subscribers. To receive the alerts you must go to the Zacks Strong Buy page under Mine for Candidates and request the alerts.

These alerts are available to new Trial members also, of course.

Zacks Strong Buy Sell alerts are also working, although we haven't issued any yet.

We are working on an Alert Monitor, a Strong Buy Buy and Sell History page and Strong Buy Breakout Performance Reporting. The monitor and history report should be available by the middle of next week.

This Week's Top Tip Tips for getting the most out of our site

If you haven't yet done so yet, you owe it to yourself to read our Zacks Breakout Strategy white paper.

Then try our Strategy Simulation tool to verify for yourself that the exceptional returns quoted in the white paper really are possible, and then sign up for a 30-day free trial with Zacks. You can get a 30-day free trial from Zacks Investment Research by clicking the Zacks logo:


 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 8500.33 2.69% -3.15% Down
NASDAQ 1774.33 4.87% 12.51% Up
S&P 500 919.14 3.62% 1.76% Down
Russell 2000 501.58 5.02% 0.43% Up
Wilshire 5000 9408.25 3.74% 3.53% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
5.02 %
Russell 2000
28.78 %
NASDAQ Composite
15.55 %
NASDAQ Composite
12.51 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Auto Parts Stores Auto Parts Stores Auto Parts Stores Auto Parts Stores
 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 25 14.54 5.3% 2.75%
Last Week 23 13.92 12.81% 7.78%
13 Weeks 190 15.15 20.53%
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 SHOR SHORETEL, INC. 127
Top Technical GMKT GMarket Inc 45
Top Fundamental GMKT GMarket Inc 45
Top Tech. & Fund. GMKT GMarket Inc 45
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 ININ Interactive Intelligence 81
Top Technical EC Engelhard Corp 58
Top Fundamental DDUP DATA DOMAIN, INC. 59
Top Tech. & Fund. DDUP DATA DOMAIN, INC. 59
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.

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

Copyright © 2009 NBIcharts, LLC dba BreakoutWatch.com. All rights reserved.
" BreakoutWatch," the BreakoutWatch.com "eye" logo, and the slogan "tomorrow's breakouts today" are service marks of NBIcharts 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.

To unsubscribe from further breakoutwatch.com newsletters, please click here.