Weekly Newsletter 07/16/10
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  

Last week we analyzed the nascent rally and found several technical reasons to doubt it would hold. As the rally continued at the start of the week, we began to doubt our assessment but now we can say that the rally has failed with all the major indexes coming under distribution on Friday with losses in the vicinity of 3%. As the daily NASDAQ Composite chart shows, the downward trend line of lower highs was respected and we could now see a test of support at the 2140 level and if that fails, a further test of support at 2060. The trend of lower lows is ominous  and that is one trend line we hope will not be respected.


Consumer confidence is falling so the consumer is unlikely to spend. As two-thirds of GDP depends on consumer spending it is likely that we will see GDP falling in the second half of this year with a consequently negative impact on earnings and stock prices. We may have to wait until October, or even after the election before the next bottom is reached.

 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 feature will return after the school vacation.
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 10097.9 -0.98% -3.17% Up
NASDAQ 2179.05 -0.79% -3.97% Down
S&P 500 1064.88 -1.21% -4.5% Down
Russell 2000 610.39 -3.02% -3.73% Down
Wilshire 5000 11066.6 -1.42% -3.75% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
-0.79 %
Dow Jones
-14.59 %
Russell 2000
-4.32 %
Dow Jones
-3.17 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Oil & Gas Pipelines Specialty Eateries Toy & Hobby Stores Housewares & Accessories
 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 7 7.31 4.57% 1.05%
Last Week 5 8.23 4.36% 0.36%
13 Weeks 104 8.85 15.37%
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 GGAL Grupo Financiero Galicia S.A. 120
Top Technical ACTG Acacia Research Corporation 57
Top Fundamental CBD Companhia Brasileira de Distribuicao 41
Top Tech. & Fund. MEND Micrus Endovascular Corp. 42
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 EZCH EZchip Semiconductor Ltd. 65
Top Technical MEND Micrus Endovascular Corp. 58
Top Fundamental MEND Micrus Endovascular Corp. 58
Top Tech. & Fund. MEND Micrus Endovascular Corp. 58
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 © 2010 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.