Weekly Newsletter 05/27/11
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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 reversed its downward trend on Wednesday with an accumulation day and followed that with another accumulation day on Thursday. Volume was slightly lighter on Friday, but were it not for the approaching long weekend we may have seen more accumulation. However, the index remains constrained within an ascending triangle pattern. On the chart below, line A represents the ascending support line, while line B shows the next resistance level. If the index overcomes line B, then it will be in the descending triangle constained by line C. A breakout above line C would be bullish but a another breakdown below line A would be bearish.

NASDAQ Composite

Our trend indicator for the NASDAQ Composite reversed itself on Friday and now says that he index is in an uptrend. Our trend indicator for the more volatile Russell 2000 turned down on May 23 and has not yet reversed. The index closed above its 50 day moving average in Friday, so we can expect out trend indicator to reverse shortly if upward momentum is maintained.

We wish all our subscribers and readers a safe and happy memorial Weekend.

 New Features this Week Additional Value that we added this week

We have developed an app for facebook that gives a summary of the day's breakouts, breakdowns, and a small selection of the top breakout and breakdown prospects for the next session.

The app is still in prototype form and will be enhanced in the weeks to come.

You can access the app at https://apps.facebook.com/todaysbreakouts/
This Week's Top Tip Tips for getting the most out of our site

This feature wil return next week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 12441.6 -0.56% 7.46% Up
NASDAQ 2796.86 -0.23% 5.43% Up
S&P 500 1331.1 -0.16% 5.84% Up
Russell 2000 836.26 0.87% 6.71% Down
Wilshire 5000 14089.7 0.02% 6.02% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
0.87 %
Dow Jones
1.74 %
Russell 2000
14.13 %
Dow Jones
7.46 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Cigarettes Cigarettes Long-Term Care Facilities Silver
 Most Improved Industry (by change in technical rank2)
Specialized Health Services
+ 71
Jewelry Stores
+ 80
Foreign Utilities
+ 145
Aerospace/Defense - Major Diversified
+ 145
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 10 13.08 5.88% 4.06%
Last Week 9 12.77 8.15% 5.77%
13 Weeks 204 13.62 12.82%
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 CLFD Clearfield, Inc. 123
Top Technical BIOS BioScrip Inc. 82
Top Fundamental SWI SolarWinds, Inc. 52
Top Tech. & Fund. ZAGG Zagg Inc 85
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 GRT Glimcher Realty Trust 71
Top Technical MEAS Measurement Specialties, Inc. 46
Top Fundamental TNH Terra Nitrogen Company, L.P. 38
Top Tech. & Fund. TNH Terra Nitrogen Company, L.P. 38
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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