Weekly Newsletter 09/20/13
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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  

The withdrawal of Larry Summers from consideration as Fed Chairman gave large cap stocks a boost on Monday. This was followed by a strong rally on Wednesday following the decision by the FOMC to maintain the
QE program into the foreseeable future. Optimism quickly soured on Friday, however, as the prospect of a Government shutdown and debt default became more real. Our trend indicators are pointing up, but we can expect a bumpy ride until the end of the month as the government funding bills work their way through congress.

NASDAQ Comp.

The number of breakouts increased sharply as prices and volumes rose. SSTK (Shutterstock) defied the market's overall trend on Friday with a 13.7% gain from a CwH pattern and ISIS Pharmaceuticals jumped over 15% on Thursday, also from a CwH base.
 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

Suspend  Investing Until The End of the Month


Although,  at the time of writing, it seems likely that the debt ceiling will be raised one way or another, the uncertainty that will prevail in the next few days is likely to give the markets conniptions, as we saw on Friiday. I suggest, therefore, that you hold off on opening new positions with the intention of going long for a few days, This is likely to be a period where only the agile trader can turn a profit.
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 15451.1 0.49% 17.91% Up
NASDAQ 3774.73 1.41% 25.01% Up
S&P 500 1709.91 1.3% 19.89% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
1.41 %
NASDAQ Composite
12.44 %
NASDAQ Composite
16.32 %
NASDAQ Composite
25.01 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Electronics Stores Electronics Stores Toy & Hobby Stores Electronics Stores
 Most Improved Industry (by change in technical rank2)
Conglomerates
+ 63
Foreign Regional Banks
+ 50
Manufactured Housing
+ 178
Office Supplies
+ 200
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 16 8.15 6.36% 3.5%
Last Week 6 7.31 10.75% 5.64%
13 Weeks 107 8.38 20.24%
12.51%
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 ZQK Quiksilver, Inc. 99
Top Technical ZQK Quiksilver, Inc. 99
Top Fundamental OII Oceaneering International 29
Top Tech. & Fund. HRG Harbinger Group 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 MXWL Maxwell Technologies Inc. 86
Top Technical XOOM Xoom Corp 43
Top Fundamental MXWL Maxwell Technologies Inc. 86
Top Tech. & Fund. MXWL Maxwell Technologies Inc. 86
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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