Weekly Newsletter 09/13/13
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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  
Our trend indicators for the major indexes turned positive on Monday and the NASDAQ Composite index set a new 10 year high on Wednesday. The news that Larry Summers has withdrawn from consideration as the next Fed Chairmen may give a boost  to the markets on Monday as Jennifer Yellen is considered more favorably disposed to continuing quantitative easing than was the more hawkish, Summers. If not then we can expect a short period of consolidation.

NASDAQ Composite

Although volumes were mostly above the recent average, there were surprisingly few breakouts this week possibly indicating traders are more cautious as the index sets new highs.
 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

Don't Overlook Tradewatch


Our tradewatch service is in many ways our premium service. We used to charge extra for this but it is now included in the Platinum service at no extra charge.

The Tradewatch lists are designed for subscribers who cannot monitor the markets in real time and therefore must place their orders before the market opens, or the night before. Stocks selected for Tradewatch must meet very stringent criteria so there are usually only a very small number, if any, on each of the six lists (4 long, two short) that Tradewatch offers.

The Buy on Breakout list has delivered an average return of 69.5% since its inception in 2005. The list is of stocks that could be bought if the they breakout and suggests the price at which you should place an order and also the limit price you should set. We set the bid price at 2.5% above the breakout price because our research suggests that at this level the stock has sufficient momentum to go on make exceptional gains. However, you should also set a limit price, and we suggest you  set that at 10c above the bid price. This limit price protects you from buying a stock that gaps up above your bid price.

Read more about Tradewatch on the Tradewatch Help page.
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 15376.1 3.04% 17.34% Up
NASDAQ 3722.18 1.7% 23.27% Up
S&P 500 1687.99 1.98% 18.36% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones
3.04 %
NASDAQ Composite
8.72 %
NASDAQ Composite
14.56 %
NASDAQ Composite
23.27 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Drugs - Generic Electronics Stores Toy & Hobby Stores Toy & Hobby Stores
 Most Improved Industry (by change in technical rank2)
Water Utilities
+ 62
Manufactured Housing
+ 68
Manufactured Housing
+ 166
Office Supplies
+ 197
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 6 7.31 3.43% 1.75%
Last Week 11 8.08 13.25% 8.71%
13 Weeks 96 8.54 19.55%
11.48%
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 PZZI Pizza Inn, Inc. 112
Top Technical PZZI Pizza Inn, Inc. 112
Top Fundamental AMBA Ambarella Inc 69
Top Tech. & Fund. AMBA Ambarella Inc 69
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 PCYG Park City Group, Inc. 100
Top Technical PCYG Park City Group, Inc. 100
Top Fundamental REGN Regeneron Pharmaceuticals Inc 49
Top Tech. & Fund. REGN Regeneron Pharmaceuticals Inc 49
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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