Our trend indicators for the major indexes turned positive on Monday and the NASDAQ Composite index set a new 10 year high on Wednesday. The news that Larry Summers has withdrawn from consideration as the next Fed Chairmen may give a boost  to the markets on Monday as Jennifer Yellen is considered more favorably disposed to continuing quantitative easing than was the more hawkish, Summers. If not then we can expect a short period of consolidation.



Although volumes were mostly above the recent average, there were surprisingly few breakouts this week possibly indicating traders are more cautious as the index sets new highs.

 No new features this week.

Don't Overlook Tradewatch

Our tradewatch service is in many ways our premium service. We used to charge extra for this but it is now included in the Platinum service at no extra charge.

The Tradewatch lists are designed for subscribers who cannot monitor the markets in real time and therefore must place their orders before the market opens, or the night before. Stocks selected for Tradewatch must meet very stringent criteria so there are usually only a very small number, if any, on each of the six lists (4 long, two short) that Tradewatch offers.

The Buy on Breakout list has delivered an average return of 69.5% since its inception in 2005. The list is of stocks that could be bought if the they breakout and suggests the price at which you should place an order and also the limit price you should set. We set the bid price at 2.5% above the breakout price because our research suggests that at this level the stock has sufficient momentum to go on make exceptional gains. However, you should also set a limit price, and we suggest you  set that at 10c above the bid price. This limit price protects you from buying a stock that gaps up above your bid price.

Read more about Tradewatch on the Tradewatch Help page.