Weekly Newsletter 01/06/13
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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 all our readers a prosperous New Year

NASDAQ Composite

With the fiscal cliff disaster postponed for two months, the markets rallied strongly. The NASDAQ Composite delivered a 5.6% gain from Monday's low to Wednesday's high with the S&P 500 and DJI close behind . The NASDAQ also delivered the highest overall gain (4.8%) of the major indexes for the week. As a result, all our trend indicators are pointing upwards. The NASDAQ did pull back slightly on profit taking, while the S&P and DJI kept their rally going until Friday's close. However, the markets are likely to continue to be skittish as debt ceiling negotiations will soon be back in the headlines and will prove even more fought than we have just seen. Wednesday's high for teh NASDAQ is now a resistance level that we may not see overcome for some time. The first test for the markets comes on Tuesday as earnings season kicks off with Alcoa being the first to report.

The move up on Monday and Wednesday produced a record number of breakouts with a total of 73 for the week. A full report of all breakouts is available to subscribers on our Recent Breakouts page.

 New Features this Week Additional Value that we added this week

New AmEx Exchange Alert Restriction

We had a request to allow the exclusion of stocks listed on the AmEx exchange from the daily alerts. As there are now many minor exchanges, we chose to implement a filter that allowed the restriction of alerts to only stocks listed on the NYSE and NASDAQ exchanges. This setting is available on the Alert Preferences page accessed from the 'Take Action - Alerts!' main menu.

The default setting is that there is no limitation. You do not need to take any action unless you wish to impose this restriction. Note that the restriction only applies to long position alerts.

AmEx Limit
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 13435.2 3.84% 2.53% Up
NASDAQ 3101.66 4.77% 2.72% Up
S&P 500 1466.47 4.57% 2.82% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
5.65 %
Russell 2000
4.31 %
Russell 2000
8.92 %
Russell 2000
3.51 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Cement Cement Lumber - Wood Production Lumber - Wood Production
 Most Improved Industry (by change in technical rank2)
+ 53
+ 94
Music & Video Stores
+ 148
Foreign Money Center Banks
+ 176
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 73 17.92 4.25% 3.7%
Last Week 5 13.92 3.55% 3.5%
13 Weeks 308 19.54 6.79%
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 TUES Tuesday Morning Corporation 103
Top Technical TUES Tuesday Morning Corporation 103
Top Fundamental TYL Tyler Technologies, Inc. 29
Top Tech. & Fund. TYL Tyler Technologies, Inc. 29
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 GGAL Grupo Financiero Galicia S.A. (ADR) 86
Top Technical DYN Dynegy Inc. 55
Top Fundamental CYT Cytec Industries Inc 33
Top Tech. & Fund. WAL Western Alliance Bancorporation 68
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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