The NASDAQ Composite has continued to consolidate in a flat base pattern. This is also reflected in the tightening Bollinger Bands which is a result of less volatility (lower variance) in the index. Breakouts from a flat base can be to the upside or downside and considerable evidence of an improving economy (increased industrial production, positive job growth) indicate that the most likely outcome is a further move to the upside. There are different points of view though, and one warning is contained in this link Dow 12 Month Rate-of-Change Sends Warning Signal.

Of many promising aspects to Friday's labor report, it was very encouraging to see a huge 17% reduction in the number of discouraged workers as mounting consumer confidence is essential to a strong recovery.

source: Daniel Indiviglio

The flat base pattern produces fewer breakouts and we saw the number drop to six this week from twenty-five last week. Should the breakout be to the upside, then we can expect the number of breakouts to jump up again.

Special 'Easter Eggs' for Newsletter Readers

Normally reserved for our site subscribers only, these 'eggs' could make you some money. The following stocks are rated 'MTC' on our cup-with-handle watchlist (for an explanation of MYC and more MTC stocks, see below):

No new features this week but we are working on a site redesign that will correct some broken menu links for users of Internet Explorer. The changes will (hopefully) be transparent and should go into effect early next week.

Early Detection of our Target Criteria Stocks

Earlier this year we undertook an analysis to determine the factors that were most likely to cause a stock to rise by at least 25% after breakout (you can read it here). We now indicate the stocks that meet these criteria with a thumbs-up icon on our watchlists.

Platinum subscribers can get an early wake-up as to which stocks meet these criteria and are in the process of building their base, but which do not yet meet all the criteria for listing on a our watchlists. They do so by going to Mine for Candidates >Database Search and making selections as follows:

As of Thursday evening, this search produced these stocks to look out for (top ten only):