BreakoutWatch.com Weekly Review for 01/28/2013

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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

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The NASDAQ Composite continues to move up and approaches its recent highs. The index is outpacing the other major indexes with a gain of 6% in less than a month. Resistance lies ahead, but with the Fed maintaining its cheap money policy as long as employment remains depressed, it is likely that the upward trend will continue, although it is doubtful that the current pace can be maintained so a pause is likely. This could happen once the first resistance level is overcome. That level then becomes support so we may see the index in a trading range bounded by the dotted lines on the chart as the upper resistance level is tested.

NASDAQ Composite

New Features this Week

Additional Value that we added this week

EPS Trends

We introduce a new tool this week which will assist you in your fundamental analysis. The tool captures the changes in analysts assessments of EPS for the current quarter over the last 90 days. While the most recent assessment is the most important, the 90 day trend is also a valuable indicator of changing perceptions.

The tool is currently free and available to all newsletter readers as well as subscribers. Subscribers can access the tool from the Evaluate > Analytical Tools > EPS Trends menu. Newsletter readers can access it by clicking this image:

You will see that the tool allows you to filter for specific EPS revisions . Clicking a symbol will bring up the CANTATA Evaluator and clicking the chart icon brings up a candlestick chart.

Stocks are first listed in descending order of current earnings upward revision. Clicking a column heading will sort the data after doing a new data extraction. So for example, click the current estimate up arrow and you will get stocks with the highest earnings expectation. We expect to develop this tool more extensively in future and link it with our watchlists.

This Week's Top Tip

Tips for getting the most out of our site

I was intending to present results of a screen that would look for the optimum filter settings over the last six months. These types of simulations can be lengthy and its been running for 8 hours and hasn't yet finished.

I will present the results next week.

Meanwhile, enjoy the new EPS trends tool.

Market Summary

Overview of market direction and industry rotation

Index

Value

Change Week

Change YTD

Trend

Dow

13896

1.8%

6.04%

NASDAQ

3149.71

0.48%

4.31%

S&P 500

1502.96

1.14%

5.38%

1 Week	13 Weeks	26 Weeks	Year-to-Date
Best Performing Index
Dow Jones 1.8 %	Russell 2000 11.31 %	Russell 2000 13.72 %	Russell 2000 6.58 %
Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Building Materials Wholesale	Building Materials Wholesale	Lumber - Wood Production	Lumber - Wood Production
Most Improved Industry (by change in technical rank²)
Recreational Vehicles + 70	Recreational Goods - Other + 55	Major Airlines + 123	Foreign Regional Banks + 174
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	18	20.15	3.38%	3.23%
Last Week	22	19.92	8.42%	5.89%
13 Weeks	312	21.31	10.35%	7.44%

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