Weekly Newsletter 10/01/10
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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  

Our Friday newsletter prep time disappeared down a wormhole as we tracked down an elusive bug in the alerts process. It was adding spurious symbols when subscribers requested alerts on both their PWL's and filtered watchlists and took a heck of a long time to track down. Hopefully it's now resolved.

A quick look at the NASDAQ chart shows just how steep the gains were in September as it quickly reversed course and then tracked the upper Bollinger Band before pausing for breath around 9/20. The small losses for the week by the major indexes show that we are now in a period of consolidation but still with an upward bias. The noises coming from the FRBNY's William Dudley that “Further action is likely to be warranted unless the economic outlook evolves in a way that makes me more confident that we will see better outcomes for both employment and inflation before too long” makes it almost certain that the markets will continue to rise as there is no doubt that further action is certainly warranted.

NASDAQ 6 Month

 New Features this Week Additional Value that we added this week
Not really a new feature, but one we have decided to resurrect - our CwH Chart Selector.

This tool allows you to look for CwH patterns that fall outside our standard selection criteria. For example, you may want to look for longer, deeper cups, or handles higher than our 3% above left cup limit.

Did you see a pattern that you thought should have been included on our CwH list? Then enter a symbol into this tool and we'll tell you why it didn't qualify.

Beware - this tool uses lots of CPU and memory resources (on our system, not yours) so we only allow it to be used outside market hours.

The tool is accessed from the Mine for Candidates > Long Positions menu choice.

This Week's Top Tip Tips for getting the most out of our site
< this week's Tip >
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 10829.7 -0.28% 3.85% Up
NASDAQ 2370.75 -0.44% 4.48% Up
S&P 500 1146.24 -0.21% 2.79% Up
Russell 2000 679.29 1.23% 7.13% Up
Wilshire 5000 11998.7 0.06% 4.36% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
1.23 %
Russell 2000
11.8 %
Dow Jones
-1.31 %
Russell 2000
7.13 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Beverages - Brewers Beverages - Brewers REIT - Residential REIT - Residential
 Most Improved Industry (by change in technical rank2)
Movie Production - Theaters
+ 70
Air Services - Other
+ 169
Air Services - Other
+ 174
Music & Video Stores
+ 179
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 35 21.15 4.66% 1.28%
Last Week 38 18.38 8.55% 4.71%
13 Weeks 279 21.85 13.82%
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 OWW Orbitz Worldwide, Inc. 111
Top Technical CLU Celu Tissue Holdings, Inc.
Top Fundamental LULU Lululemon Athletica Inc. 47
Top Tech. & Fund. LULU Lululemon Athletica Inc. 47
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 BTN Ballantyne Strong, Inc 91
Top Technical EXXI Energy XXI (Bermuda) Limited 62
Top Fundamental LULU Lululemon Athletica Inc. 47
Top Tech. & Fund. LULU Lululemon Athletica Inc. 47
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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