BreakoutWatch.com Weekly Review for 08/20/2011

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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

It's a state holiday here in Hawaii, my wife and the boys are out of school so we taking a vacation day. I also have to get an early night as we have our annual Cycle to the Sun bike race tomorrow.

Briefly, as lawmakers are on vacation and it is unlikely that there will be good news out of Europe, I expect market volatility to continue at least until Ben Bernanke's speech at Jackson Hole next Friday.

While some hedge funds may be killing it this quarter, this is not a market we can play in successfully.

New Features this Week

Additional Value that we added this week

No new features this week.

This Week's Top Tip

Tips for getting the most out of our site

I repeat last week's advice: The volatility present in the market this week creates opportunities for very short term traders, but is a challenge for most of us as the indexes can move by hundreds of points in a few minutes. Only computers can compete in this trading environment. In fact, as this Bloomberg article shows, trading volumes tripled due to computer driven high frequency trading. I think it is better to stay on the sidelines until volatility returns to more normal levels.

Market Summary

Overview of market direction and industry rotation

Index

Value

Change Week

Change YTD

Trend

Dow

10817.7

-4%

-6.56%

NASDAQ

2341.84

-6.62%

-11.72%

Down

S&P 500

1123.53

-4.69%

-10.66%

Down

Russell 2000

651.69

-6.57%

-16.84%

Down

Wilshire 5000

11732.8

-5.13%

-11.72%

Down

1 Week	13 Weeks	26 Weeks	Year-to-Date
Best Performing Index
Dow Jones -4 %	Dow Jones -13.54 %	Dow Jones -12.7 %	Dow Jones -6.56 %
Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Personal Computers	Personal Computers	Personal Computers	Cigarettes
Most Improved Industry (by change in technical rank²)
Tobacco Products - Other + 60	Tobacco Products - Other + 150	Agricultural Chemicals + 156	Closed-End Fund - Debt + 201
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	6	12.15	4%	0.9%
Last Week	15	12.15	1.6%	-1.27%
13 Weeks	284	12.54	6.45%	-14.2%

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