Weekly Newsletter 05/11/12
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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 failed to find support at 2950 (dotted line) as we had hoped last week, but did find a floor at 2900 (solid line) on Tuesday giving a strong intraday reversal (see equivolume chart). 2900 was tested again on Wednesday and also produced an intraday reversal. Friday's close, ever so slightly above the level of mid-week, confirms that 2900 is the bottom of the trading range, at least for now.

Our trend indicator for the NASDAQ remains positive, although it is the only major index to do so following a trend reversal by the S&P 500 on Monday. While the domestic economy remains weak the markets will continue to be buffeted by political turmoil in Europe and the contraction of European and Asian economies.


nasdaq equivolume chart

The number of breakouts was in line with the 13 week average despite the generally negative tone and they succeeded in closing in the black on average, easily beating the major averages.

 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 retrun next week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 12820.6 -1.67% 4.94% Down
NASDAQ 2933.82 -0.76% 12.62% Up
S&P 500 1353.39 -1.15% 7.62% Down
Russell 2000 790.06 -0.22% 6.63% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
-0.22 %
NASDAQ Composite
1.03 %
NASDAQ Composite
9.52 %
NASDAQ Composite
12.62 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Medical Practitioners Medical Practitioners Home Improvement Stores Personal Computers
 Most Improved Industry (by change in technical rank2)
Dairy Products
+ 39
General Contractors
+ 144
Medical Practitioners
+ 101
Photographic Equipment & Supplies
+ 172
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 16 17.23 2.81% 0.75%
Last Week 18 17.77 4.14% -2.12%
13 Weeks 276 19 9.64%
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 TRR TRC Companies, Inc
Top Technical TRR TRC Companies, Inc
Top Fundamental SLXP Salix Pharmaceuticals, Ltd. 32
Top Tech. & Fund. SLXP Salix Pharmaceuticals, Ltd. 32
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 DCIX Diana Containerships Inc 90
Top Technical XBI SPDR S&P Biotech (ETF) 26
Top Fundamental TRAK DealerTrack Holdings, Inc. 56
Top Tech. & Fund. TRAK DealerTrack Holdings, 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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