Weekly Newsletter 08/19/12
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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  

All our trend indicators are positive and Thursday's breakout by the NASDAQ from last week's trading range on 20% higher than average volume (despite the masters of the universe being mostly at the Hamptons) appears to auger well. The number of successful breakouts was almost double the number from last week with an average gain more than twice that of the NASDAQ index.


The breakout appears to be based on a bounce in US July retail sales and increasing confidence in what is being called the "Drahgi put" wherein traders believe that the European Central Bank will enact their own version of our QE and drive European equities higher. The Spanish market is at a 4 month high and the Italian market is following along.

There is a favorable chance now that the index will test resistance at 3085 and a breakthrough would be bullish for further profitable breakouts.

 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 top tip this week.

 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 13275.2 0.51% 8.66% Up
NASDAQ 3076.59 1.84% 18.1% Up
S&P 500 1418.16 0.87% 12.77% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
2.29 %
NASDAQ Composite
10.72 %
NASDAQ Composite
4.23 %
NASDAQ Composite
18.1 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Aerospace/Defense - Major Diversified REIT - Healthcare Facilities Building Materials Wholesale Building Materials Wholesale
 Most Improved Industry (by change in technical rank2)
Chemicals - Major Diversified
+ 34
Pollution & Treatment Controls
+ 74
Home Health Care
+ 136
Home Health Care
+ 185
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 15 13.92 4.48% 3.94%
Last Week 9 13 7.13% 6.5%
13 Weeks 198 14.15 10.91%
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 ADY Feihe International Inc 105
Top Technical ADY Feihe International Inc 105
Top Fundamental TUMI Tumi Holdings Inc 62
Top Tech. & Fund. DLLR DFC Global Corp 26
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 LNDC Landec Corporation 74
Top Technical SHAW The Shaw Group Inc. 32
Top Fundamental LNDC Landec Corporation 74
Top Tech. & Fund. LNDC Landec Corporation 74
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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