Weekly Newsletter 09/06/08
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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  

NASDAQ Market Signal Predicted Thursday's Sell-off

Our market signal sent an exit signal on Wednesday which was followed on Thursday with drops of 3% and more in each of the four indexes we track. Although there was a mid-day recovery on Friday led by financial stocks, it is doubtful that recovery can continue next week. The Government is set to take over Fannie Mae and Freddie Mac and an announcement may come this weekend. At the same time, losses from sub-prime mortgage/CDO/SIV debacle have now reached $500 billion which is just half of the IMF's predicted fallout and many analysts believe that is a conservative estimate.

On the other hand, some analysts believe the worst is behind us, although it seems to us that they generally have an interest in promoting optimism. So whichever way the market goes from here, we are trying to provide you with tools that can give you an advantage, be it on the long or short side.

 New Features this Week Additional Value that we added this week

New Personal Watchlist Functionality

Please read http://www.breakoutwatch.com/personalWatchlists/pwlHelp.html

This Week's Top Tip Tips for getting the most out of our site
Our tip this week is to use our powerful new personal watchlist function.
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Market1
Signal
Dow 11221 -2.8% -15.41% enter
NASDAQ 2255.88 -4.72% -14.95% exit
S&P 500 1242.31 -3.16% -15.39% enter
Russell 2000 718.85 -2.79% -6.16% N/A
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
-2.79 %
Russell 2000
-2.91 %
Russell 2000
8.9 %
Russell 2000
-6.16 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Long Distance Carriers Long Distance Carriers REIT - Healthcare Facilities REIT - Healthcare Facilities
 Most Improved Industry (by change in technical rank2)
Aluminum
+ 54
Aluminum
+ 99
Long Distance Carriers
+ 213
Long Distance Carriers
+ 210
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 12 19.08 3.73% -1.98%
Last Week 15 20.08 5.76% -1.5%
13 Weeks 277 21 10.23%
-3.11%
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 EBHI Eddie Bauer Hlds Inc 111
Top Technical MCCC Mediacom Communication A 82
Top Fundamental BWLD Buffalo Wild Wings 46
Top Tech. & Fund. BWLD Buffalo Wild Wings 46
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 ACET Aceto Corp 95
Top Technical WH WSP HOLDINGS LIMITED 79
Top Fundamental WH WSP HOLDINGS LIMITED 79
Top Tech. & Fund. WH WSP HOLDINGS LIMITED 79
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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