Weekly Newsletter 04/22/11
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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  

The NASDAQ Composite moved ahead strongly on Wednesday and Thursday on the strength of better than expected earnings from leading tech stocks such as Intel and Apple. Volume was well above average showing that the upward price move was well supported. The index powered through the 2815 resistance level to close at its intraday high of 2820. The index is now just 20 points (0.7%) away from its post crash high and 41 points (1.4%) away from its 2007 high. We could easily see a test of these levels next week.


The surge in the NASDAQ Composite also brought with it a flurry of breakouts: four on Wednesday and eight on Thursday. The top performer was Travel Zoo (TZOO) which broke out from a high tight flag formation and closed 11% above its breakout price.

We wish all our subscribers a safe and happy holiday weekend.

 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 next week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 12506 1.33% 8.02% Up
NASDAQ 2820.16 2.01% 6.31% Up
S&P 500 1337.38 1.34% 6.34% Up
Russell 2000 845.64 1.28% 7.91% Up
Wilshire 5000 14154 1.35% 6.5% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
2.2 %
Russell 2000
8.68 %
Russell 2000
21.13 %
Dow Jones
8.02 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Silver Silver Silver Silver
 Most Improved Industry (by change in technical rank2)
Manufactured Housing
+ 38
Resorts & Casinos
+ 72
Apparel Stores
+ 142
Lumber - Wood Production
+ 164
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 15 13.77 5.63% 3.81%
Last Week 13 12.92 8.54% 4.47%
13 Weeks 225 14.62 12.6%
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 MDM Mountain Province Diamonds, Inc. 114
Top Technical END Endeavour International Corporation 62
Top Fundamental SQM Sociedad Quimica y Minera (ADR) 39
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 ELN Elan Corporation, plc (ADR) 84
Top Technical SUR CNA Surety Corporation 62
Top Fundamental GDI Gardner Denver, Inc. 50
Top Tech. & Fund. GDI Gardner Denver, Inc. 50
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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