Weekly Newsletter 09/03/11
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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  

We wish our readers a happy and safe Labor Day Weekend.

The NASDAQ Composite  barely stayed positive for the week while the other major indexes declined. We can expect the drift downward to continue next week at least until President Obama announces new stimulus measures on Thursday.

The NASDAQ broke out of the double bottom we identified last week on Monday but that breakout collapsed on Thursday when the index closed below the pivot. Friday's sell-off was a result of the extremely weak employment data and could have been worse if it were not the day before a long weekend. I expect the sell-off to continue when traders and investors return to their desks on Tuesday.

NASDAQ Composite
 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 11240.3 -0.39% -2.91% Up
NASDAQ 2480.33 0.02% -6.5% Down
S&P 500 1173.97 -0.24% -6.65% Down
Russell 2000 683.36 -1.22% -12.8% Down
Wilshire 5000 12284.4 -0.24% -7.57% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
0.02 %
Dow Jones
-7.5 %
Dow Jones
-7.64 %
Dow Jones
-2.91 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Personal Computers Personal Computers Personal Computers Cigarettes
 Most Improved Industry (by change in technical rank2)
Tobacco Products - Other
+ 54
Tobacco Products - Other
+ 66
Drug Related Products
+ 148
Closed-End Fund - Debt
+ 193
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 11.54 6.4% 2.37%
Last Week 8 11.92 5.51% 2.92%
13 Weeks 273 12.54 6.45%
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 CRDB
Top Technical RLRN Renaissance Learning, Inc. 55
Top Fundamental SWI SolarWinds, Inc. 54
Top Tech. & Fund. SWI SolarWinds, Inc. 54
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 JAG Jaguar Mining Inc. 95
Top Technical LGND Ligand Pharmaceuticals Inc. 60
Top Fundamental JAG Jaguar Mining Inc. 95
Top Tech. & Fund. JAG Jaguar Mining Inc. 95
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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