| Market Summary | Weekly Breakout Report | Top Breakout Choices | Top 2nd Chances | New Features | Tip of the Week |
I apologize for the lateness of this week's newsletter and also its brevity. My elder son was competing in a Hershey's track meet yesterday so I was not at my computer. (Once again I was the insufferable proud father as he won his 400m and 800m races).
This was a good week for the markets as our market summary table shows. The NASDAQ Composite gained almost 3%, Friday close to Friday close. The three month daily chart shows the NASDAQ has technically broken out from a double-bottom but volumes have been anemic (except for Friday's quadruple witching day surge) so I am not optimistic that the rally will hold. However, summertime volumes are usually lower so we may see the indexes continue to edge higher but there is still sufficient uncertainty, even though volatility diminished this week, to keep gains at modest levels.
I continue to believe we have a better than 50-50 chance of a double-dip based on the research I quoted two weeks ago. John Maudlin's latest e-Letter also provides additional cogent arguments for that view. One positive development today is that the New York Times is reporting that China has agreed to allow its exchange rate to gradually float upwards. In theory this should reduce US and European imports from China and increase exports to China restoring, eventually, an improved balance of trade. However, it could also slow China's growth with generally negative consequences for the rest of Asia.
Barry Ritholz has, in my view, an excellent critique of Greenspan's latest WSJ Op-Ed. http://www.ritholtz.com/blog/2010/06/greenspan-deficit-reduction/
A
subscriber requested access to our historical watchlist data so I
created a page which allows the download of historical watchlist data
by date in csv format. You access the page as follows:
Buy on Alert Strategy Revisited
I subscriber asked if under the Buy on Alert strategy he should be holding TEN and PAY after we issued an alert on them on Friday. The answer is no.
Neither stock had a projected volume of at least 3 times average daily volume and the NASDAQ market trend indicator is still down.
I subscriber asked if under the Buy on Alert strategy he should be holding TEN and PAY after we issued an alert on them on Friday. The answer is no.
Neither stock had a projected volume of at least 3 times average daily volume and the NASDAQ market trend indicator is still down.
| Index | Value | Change Week | Change YTD | Trend | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dow | 10450.6 | 2.35% | 0.22% | Up | ||||||||||||||||||||||||||||||||||||
| NASDAQ | 2309.8 | 2.95% | 1.79% | Down | ||||||||||||||||||||||||||||||||||||
| S&P 500 | 1117.51 | 2.37% | 0.22% | Up | ||||||||||||||||||||||||||||||||||||
| Russell 2000 | 666.92 | 2.76% | 5.18% | Down | ||||||||||||||||||||||||||||||||||||
| Wilshire 5000 | 11669.9 | 2.37% | 1.5% | Up | ||||||||||||||||||||||||||||||||||||
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. |
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|
# of Breakouts
|
Period Average1
|
Max. Gain During Period2
|
Gain at Period Close3
|
|
|---|---|---|---|---|
| This Week | 5 | 10.77 | 4.87% | 3.16% |
| Last Week | 4 | 12.54 | 5.81% | 2.36% |
| 13 Weeks | 155 | 12.92 | 15.47% |
-2.52% |
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.
|
Category
|
Symbol
|
Company Name
|
Expected Gain1
|
|---|---|---|---|
| Best Overall | CSA | Cogdell Spencer Inc. | 110 |
| Top Technical | PWER | Power-One Inc. | 91 |
| Top Fundamental | MED | Medifast Inc. | 73 |
| Top Tech. & Fund. | MED | Medifast Inc. | 73 |
|
Category
|
Symbol
|
Company Name
|
Expected Gain1
|
|---|---|---|---|
| Best Overall | PCM | PCM Fund Inc. | 76 |
| Top Technical | ASPS | Altisource Portfolio Solutions S.A. | 48 |
| Top Fundamental | PCM | PCM Fund Inc. | 76 |
| Top Tech. & Fund. | ASPS | Altisource Portfolio Solutions S.A. | 48 |
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