Weekly Newsletter 12/18/09
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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 trend for growth stocks continues to be upwards, but at a slower pace as shown by the trend lines on the chart below. The NASDAQ Composite and Russell 2000 made modest gains for the week while the large cap stocks represented by the DJI and S&P 500 closed the week with a loss. The NASDAQ weekly chart shows volume improved this week but that improvement can be explained by unusually heavy volume on Friday when a 'quadruple witching' day coincided with changes to the composition of the S&P 500 causing ETF 's and mutual funds that track the index to sell stocks leaving the index and buy those entering it.

NASDAQ Composite

Breakouts for the week more than doubled to fifteen. The best performer was SNIC, another High Tight Flag breakout.

We wish all our subscribers the merriest of Christmases, or whatever holiday you celebrate.
 New Features this Week Additional Value that we added this week

We enhanced our Zacks Strong Buy watchlist by adding a link to the Zacks report on each watchlist stock.

You must be a Zacks subscriber to view the watchlist and get the link to the report. You can get a 30 day free trial to the Zacks Premium service, and then access our ZSB watchlist by clicking the Zacks logo below. Subscribers to Zacks also get an alert when a Zacks breakout occurs, or a Zacks breakout has lost its strong buy rank.

Read our white paper describing the ZSB strategy in detail.

Learn more about the Zacks rank and get a 30-day free trial by clicking their logo:


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

The kids are on school vacation which limits the time available for writing this section. It will return in the New Year
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 10328.9 -1.36% 17.69% Up
NASDAQ 2211.69 0.98% 40.24% Up
S&P 500 1102.47 -0.36% 22.06% Up
Russell 2000 610.57 1.7% 22.25% Up
Wilshire 5000 11355.1 0.09% 24.96% Up
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
Russell 2000
1.7 %		 Dow Jones
3.7 %		 NASDAQ Composite
21.02 %		 NASDAQ Composite
40.24 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Housewares & Accessories Silver Silver Copper
 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 15 8.23 7.05% 5.01%
Last Week 7 9.92 12.92% 7.73%
13 Weeks 125 10.85 15.61%
 2.66%
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 SCSS Select Comfort Corp 104
Top Technical GMK Gruma Sa De Cv Ads 94
Top Fundamental PEGA Pegasystems Inc 46
Top Tech. & Fund. PEGA Pegasystems Inc 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 NOX Neuberger Berm Inc Opportunity 94
Top Technical CRNT Ceragon Networks Ltd 66
Top Fundamental CRNT Ceragon Networks Ltd 66
Top Tech. & Fund. CRNT Ceragon Networks Ltd 66
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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