Weekly Newsletter 10/28/12
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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  

Our DJI trend indicator turned negative on Monday joining the NASDAQ and S&P 500 indicators as company earnings continued to disappoint. We anticipated last week that the NASDAQ could find support at the 200 dma level and that proved true on Friday as the Commerce Department reported a slightly higher than expected GDP number for the third quarter. While this GDP report may provide reasons for optimism, Barry Ritholz is not so sure. We agree as the fiscal cliff still threatens and continued inaction by our leaders will almost certainly result in a new recession next year.

We continue to advise caution until at least our NASDAQ trend indicator turns upwards.

NASDAQ Composite
 New Features this Week Additional Value that we added this week

Facebook App

We started work on this last year. Many things intervened to delay progress but it is at least ready for release. The app is  available for free and can be accessed at https://apps.facebook.com/todaysbreakouts/

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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 13107.2 -1.77% 7.28% Down
NASDAQ 2987.95 -0.59% 14.69% Down
S&P 500 1411.94 -1.48% 12.27% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
-0.59 %
Russell 2000
1.87 %
S&P 500
0.61 %
NASDAQ Composite
14.69 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Residential Construction Lumber - Wood Production Air Services - Other Lumber - Wood Production
 Most Improved Industry (by change in technical rank2)
Meat Products
+ 39
Movie Production - Theaters
+ 63
Foreign Money Center Banks
+ 151
Jewelry Stores
+ 156
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 19 2.92% 2.27%
Last Week 18 19.38 1.19% -2.89%
13 Weeks 291 20.54 8.62%
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 110
Top Technical ADY Feihe International Inc 110
Top Fundamental CAP CAI International Inc 47
Top Tech. & Fund. CAP CAI International Inc 47
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 KEP Korea Electric Power Corporation (ADR) 63
Top Technical HNP Huaneng Power International, Inc. (ADR) 45
Top Fundamental TMO Thermo Fisher Scientific Inc. 29
Top Tech. & Fund. MPEL Melco Crown Entertainment Ltd (ADR) 57
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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