Weekly Newsletter 08/12/12
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You are receiving this email because you are or were a BreakoutWatch.com subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.
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 broke out on Tuesday and is now in a narrow trading range due to continued uncertainty over the domestic, European and Chinese economies. The StockRSI shows the index is in an overbought condition which also leads traders to be cautious about where the markets will go from here. While overbought doesn't mean that a sell off is due, it does increase its likelihood, although markets can stay overbought for some considerable time (consider the housing market prior to 2007) especially when cheap money continues to be available.

Traders of breakouts/breakdowns should be cautious until a trend re-forms.

NASDAQ Composite

A Personal Note

I and my family are resuming residence in Australia so my wife can be close to her family. This has caused some disruption in my ability to access the internet while permanent broadband communications were established, which were finally completed this week. Re-establishing our home here, getting the boys settled in school, etc. has also been a distraction, as you can imagine, but from now on I will be able to give more attention to the site, and this newsletter. Fortunately,the world-wide-web allows me to operate the site from any location. Our server continues to be based in the US (San Antonio actually) and I have every intention of continuing to  provide this service as  always.
 
 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

No tip this week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 13208 0.85% 8.11% Up
NASDAQ 3020.86 1.78% 15.96% Up
S&P 500 1405.87 1.07% 11.79% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
1.78 %
S&P 500
3.88 %
S&P 500
4.71 %
NASDAQ Composite
15.96 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
REIT - Healthcare Facilities REIT - Healthcare Facilities Building Materials Wholesale Recreational Vehicles
 Most Improved Industry (by change in technical rank2)
Broadcasting - TV
+ 37
Information & Delivery Services
+ 71
Home Health Care
+ 127
Dairy Products
+ 181
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 9 13 4.5% 3.89%
Last Week 15 13.54 4.98% 3.71%
13 Weeks 204 14.23 9.88%
4.09%
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
Category
Symbol
Company Name
Expected Gain1
Best Overall ISLE Isle of Capri Casinos 101
Top Technical ISLE Isle of Capri Casinos 101
Top Fundamental CHS Chico's FAS, Inc. 59
Top Tech. & Fund. DXPE DXP Enterprises, Inc. 48
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
Category
Symbol
Company Name
Expected Gain1
Best Overall NTE Nam Tai Electronics, Inc. 96
Top Technical NTE Nam Tai Electronics, Inc. 96
Top Fundamental PDFS PDF Solutions, Inc. 76
Top Tech. & Fund. PDFS PDF Solutions, Inc. 76
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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