Weekly Newsletter 10/18/13
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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 NASDAQ has risen steeply since finding support at the 50 dma level on October 9. Although it is now outside the 2 standard deviation Bollinger Band, that does not mean that a pull back is inevitable, although a short period of consolidation is likely. I expect the uptrend to continue as, after all, there is no where else for money to go but into stocks, and with Janet Yellen taking over at the Fed, relatively cheap money is likely to persist until unemployment is below 6%.


Breakout returns since the October 9 reversal have been truly outstanding. Here's a look at our Breakout Report since then. Five stocks have risen by more than 20%, two by more than 10% and all but two by more than 5%.

breakout report
 New Features this Week Additional Value that we added this week

Optionable Filter

At the request of a subscriber, I've added an Option column to each of our watchlists and you can now filter for optionable stocks and also restrict alerts to only optionable stocks.

If a stock is optionable, then you will see a 'y' in the options column. All the stocks so indicated are optionable weekly. Stocks optionable quarterly at not flagged as there is only a handful of them.

To filter for optionable stocks, click the Filter Settings tab on the watchlist and set the Optionable Filter.

Option Filter
This Week's Top Tip Tips for getting the most out of our site

Restricting Alerts by Setting Alert Preferences

A common question from new subscribers is how can they limit the number and type of alerts they receive. With the addition of the new "Optionable" filter, we will revisit that topic for the benefit of new subscribers.

I have shown how to set your watchlist filters above - just remember to check 'yes' in the first three rows of the filter settings table and click "Update and Apply".

There is one more step to activating your filters.

The type of alerts you will receive are controlled from the Alert Preferences menu under Take Action - Alerts!. Here you can choose to receive Long position alerts, short position alerts, both or neither.

If you choose to receive alerts for long positions, then you can further refine your selection to restrict alerts by watchlist filters and/or your personal watchlist(s). To learn about Personal Watchlists go here.


 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 15399.7 1.07% 17.52% Up
NASDAQ 3914.28 3.23% 29.63% Up
S&P 500 1744.5 2.42% 22.32% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
NASDAQ Composite
3.23 %
NASDAQ Composite
9.11 %
NASDAQ Composite
22.09 %
NASDAQ Composite
29.63 %
 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)
Semiconductor - Memory Chips
+ 73
Dairy Products
+ 154
Wholesale - Other
+ 193
Semiconductor - Specialized
+ 166
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 13 10.23 11.24% 9.26%
Last Week 12 9.69 13.23% 11.93%
13 Weeks 134 11 17.77%
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 PZZI Pizza Inn, Inc. 103
Top Technical PZZI Pizza Inn, Inc. 103
Top Fundamental BOFI BofI Holding, Inc. 36
Top Tech. & Fund. BOFI BofI Holding, Inc. 36
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 NYMX Nymox Pharmaceutical Corporation 81
Top Technical ORAN Orange SA (ADR) 38
Top Fundamental EQM EQT Midstream Partners LP 39
Top Tech. & Fund. EQM EQT Midstream Partners LP 39
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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