Weekly Newsletter 04/29/11
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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  
As a reminder to new subscribers, we always focus on the performance of the NASDAQ Composite as it is stocks on that exchange that have the greatest propensity to break out.

The NASDAQ, along with the the other major indexes, has had a stellar run since April 19 moving higher each day and recording five accumulation days. Stocks are said to be under accumulation when volume and price both move higher than the previous session and accumulation days are an indication of gathering interest in the stock, or in this case the stocks that compose the index.

NASDAQ Equivolume Chart

As volume has risen so has the number of breakouts and the rewards thay have brought. There were 20 confirmed breakouts this week that gained an average of 7.75% - a very healthy average gain.

 New Features this Week Additional Value that we added this week

We were asked by a subscriber to provide a filter that would select stocks that were within x% of their 50 day moving average. We are pleased to announce that that is now available as part of our Mine for Candidates > Database Search function.

In addition to the other selection criteria that have been available as part of the database search since 2003, you can now add an extra filter as shown here:

deltaDMA filter

When combined with the other default criteria, this filter gave the following result. You will notice that there is now an extra column under "Technical Data" showing the difference between the 50 dma and the latest close.

deltaDMA filter result

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

Our work on the new trend reversal indicator was interrupted by the development of the delta dm afilter. We hope to return to it next week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 12810.5 2.43% 10.65% Up
NASDAQ 2873.54 1.89% 8.32% Up
S&P 500 1363.61 1.96% 8.43% Up
Russell 2000 865.29 2.32% 10.42% Up
Wilshire 5000 14432.2 1.97% 8.59% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones
2.43 %
Russell 2000
11.59 %
Russell 2000
23.02 %
Dow Jones
10.65 %
 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)
Aerospace/Defense - Major Diversified
+ 65
Internet Service Providers
+ 98
+ 168
Apparel Stores
+ 167
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 20 13.92 9.65% 7.65%
Last Week 15 13.77 9.06% 4.81%
13 Weeks 227 14.85 14.16%
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 SNTA Synta Pharmaceuticals Corp. 120
Top Technical PCOM Points International Ltd. (USA) 92
Top Fundamental SWI SolarWinds, Inc. 57
Top Tech. & Fund. SWI SolarWinds, Inc. 57
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 EXAS EXACT Sciences Corporation 93
Top Technical REV Revlon, Inc. 56
Top Fundamental REV Revlon, Inc. 56
Top Tech. & Fund. REV Revlon, Inc. 56
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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