Market Summary

Encouraging economic news and signs of controlled inflation allowed the markets to move higher this week. The DJI closed 1.83% higher but still remains 1.32% down for the year to date. The NASDAQ Composite gained a healthy 2.08% and is now down just 0.86% for the year while the S&P 500 gained 1.33% and set a new 4-year high.

The NASDAQ market is the one of most interest to growth stock investors and has provided a return of 14% since its low on 4/29 this year. The NASDAQ is tracking the upper level of its Bollinger Band and met resistance on Thursday at the 2160 level. The upper Bollinger Band is generally considered to be an overbought indictor, so we could see a small correction in the days to come. There also remains the hurdle of the 12 month high set on January 3 of 2191. These points are clear in the following 9 month NASDAQ chart, which also allows us to show off our new T/A chart with Bollinger Bands.

The S&P 500 is within its upper band, however, and so still has some room to move higher with no resistance ahead of it.

Breakouts This Week

MMSI (Merit Medical Systems) broke out of a long handle on Tuesday that was more like a flat base and gained 14.64% over its pivot before closing for a gain of 12.58%. Also on Tuesday, TOA (Technical Olympic) broke out of a cup-with-handle with a strong Handle Quality (HQ) metric and heavy buying the day before breakout, and continued to move ahead on 3 times average volume each day before closing the week with a gain of 11.26%. Overall, 8 of the 37 breakouts gained more than 5% for the week, and 3 made more than double digit intra-day gains.

Imminent Subscription Price Increase

Substantial value has been added to to breakoutwatch.com since our last price increase over a year ago and we are dedicated to continuous improvement. Another new feature - Technical Analysis Charts - was added this week. To finance our ongoing development we must raise our subscription prices which will rise by 10% on August 1, 2005. You can beat the price increase by subscribing now or renewing or upgrading your subscription before July 31.

Technical Analysis Charts

Our standard charts provide the information usually needed by followers of the CANTATA methodology, which is strongly based on an analysis of a stock's fundamentals and performance in relationship to the overall market, but are not powerful enough for those who like a more rigorous technical analysis approach. Consequently we are introducing a new charting option - Technical Analysis Charts. These charts are accessed from a new button on our standard charts:

Clicking the button will bring up a chart for the selected stock which can be heavily customized through a control panel to show new analytics and indicators.

T/A Chart Overview
Using the Control Panel
All chart options are controlled from the control panel on the left side. You must click the 'Update Chart' button to redraw the chart.
Main Chart
Note that data for the most recent date is shown in the row below the chart title. Moving the mouse over the price bars will cause the data for that day to be shown in that area.