Breakoutwatch Weekly Newsletter 12/11/15

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Weekly Commentary

The major indexes had a tough week with the NASDAQ Composite suffering the most with a 4% loss. Despite this, our market model still says the NASDAQ trend continues to point up while the model changed the trend for the DJI and S&P 500 to negative on Wednesday. The trend for the NASDAQ is likely to follow suit if we get another down day for the NASDAQ on Monday.

With the FOMC set to raise interest rates on Wednesday, we are likely to see defensiveness continue while the markets determine how to react. This is a time for caution and I personally would not open any new positions at this time.
NASDAQ Comp. Chart
Weekly Breakout Report

The number of breakouts fell substantially this week to only 25. Overall gains were non-existent although a handful (3) closed the week with a gain of  over 5%. You can see from this success rate where my advice to move with caution comes from.
Breakouts Summary by Watchlist for Week Beginning 12/07/15
List Breakouts Avg. Gain
CwH 15 -0.91
SQZ 9 -1.02
HSB 1 9.95
Breakouts Detail for Week Beginning 12/07/15
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
12/08/15 PLCE HSB N 49.34 54.88 31 54.25 9.95 12.57
12/10/15 ANAC SQZ Y 109.12 118.74 99 117.13 7.34 8.82
12/08/15 EGRX CwH N 92.62 100.21 99 91.51 -1.20 8.19
12/09/15 SSNI CwH N 15.05 15.74 96 14.465 -3.89 7.24
12/09/15 CARA SQZ Y 15.19 16 92 15.17 -0.13 6.78
12/08/15 CNTY CwH N 7.09 7.40 89 7.54 6.35 6.49
12/09/15 DOW CwH N 53.67 56.97 82 53.3301 -0.63 6.15
12/09/15 FRAN CwH N 15.50 16.33 81 15.95 2.90 5.35
12/08/15 FARM SQZ Y 30.72 31.98 90 31.85 3.68 4.2
12/07/15 JBLU SQZ Y 25.51 26.49 94 23.43 -8.15 3.84
12/09/15 ORBK CwH N 21.77 22.02 94 21.3 -2.16 2.34
12/07/15 GDDY CwH N 33.42 33.94 92 33.6 0.54 1.56
12/10/15 BW CwH N 19.91 19.99 84 20.02 0.55 1.1
12/08/15 ENSG SQZ Y 48.50 49 80 47.86 -1.32 1.03
12/10/15 CARA SQZ Y 16.07 16.22 95 15.17 -5.60 0.93
12/07/15 ETM CwH N 12.18 12.27 80 10.95 -10.10 0.74
12/10/15 NVRO CwH N 64.14 64.61 97 64.11 -0.05 0.73
12/11/15 SLP SQZ Y 9.51 9.54 97 9.54 0.32 0.32
12/08/15 EA SQZ Y 70.77 70.99 93 67.15 -5.12 0.31
12/09/15 BEE CwH N 14.22 14.22 81 14.24 0.14 0.21
12/10/15 TE SQZ Y 26.70 26.74 95 26.65 -0.19 0.15
12/10/15 LAKE CwH N 14.85 14.86 97 14 -5.72 0.07
12/10/15 WX CwH N 45.87 45.90 88 117.13 N/A 0.07
12/08/15 GAS CwH N 63.01 63.03 93 62.745 -0.42 0.03
12/11/15 PMF CwH N 15.30 15.30 83 15.305 0.03 0.03
Weekly Average (25 breakouts) -0.52 3.17
*RS Rank on day before breakout.
New Features This Week

No new features this week
 
Top Tip of the Week


No tip this week. This feature will return in the New Year, when hopefully the markets will have gained some positive momentum.
 
Major Index Summary
Index Value Change Week Change YTD Trend1
Dow 17265.2
 -3.26% -3.13% Down
NASDAQ 4933.46
 -4.06% 4.17% Up
S&P 500 2012.37
 -3.79% -2.26% Down
1The Market Trend 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.
Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Dow Jones
-3.26 %		 Dow Jones
2.3 %		 NASDAQ Composite
-2.33 %		 NASDAQ Composite
4.17 %
Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Cigarettes Cigarettes Music & Video Stores Cigarettes
Most Improved Industry (by change in technical rank2)
Networking & Communication Devices
+ 63		 Photographic Equipment & Supplies
+ 74		 Diversified Computer Systems
+ 162		 Long Distance Carriers
+ 149
Charts of each industry rank and performance over 12 months are available on the site
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 BZUN
 Baozun Inc.
 107
Top Technical BZUN
 Baozun Inc.
 107
Top Fundamental VIMC
 Vimicro International Corporation
 43
Top Tech. & Fund. QIHU
 Qihoo 360 Technology Co. Ltd.
 40
1This is the gain predicted by our Expected Gain model within 6 months of breakout which uses the volume on breakout as a predictive term. Because the model variance is +/- 38% the expectation can be negative.
Top Second Chances: Stocks that broke out this week and are still in buyable range
Category
Symbol
Company Name
Expected Gain1
Best Overall LAKE
 Lakeland Industries, Inc.
 67
Top Technical NVRO
 Nevro Corp.
 37
Top Fundamental SSNI
 Silver Spring Networks, Inc.
 59
Top Tech. & Fund. SSNI
 Silver Spring Networks, Inc.
 59
1This is the gain predicted by our Expected Gain model within 6 months of breakout 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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