BreakoutWatch.com Weekly Review for 05/17/2014

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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 NASDAQ Composite was the only index to close higher this week. The gain was marginal, however, and the index remains in a downtrend. As the chart shows, the index is actually in a squeeze with volatility dropping and allowing the Bollinger Band to move within the Keltner Channel. From here, the index could move in either direction. With weakness appearing in the two large cap indexes, the more likely scenario would be a further move down.

NASDAQ Comp

Weekly Breakout Report

The number of breakouts increased this week, with stocks in a squeeze prior to breakout showing the best gains, once again.

Brkout Date	Symbol	Base	Squeeze	BrkoutOut Price	Brkout Day Close	Last Close	Current % off BOP	Gain at Intraday High
Breakouts for Week Beginning 05/12/14
05/16/14	PAH	SQZ	Y	21.11	22.35	22.35	5.87	7.06
05/12/14	IFN	SQZ	Y	22.82	23.07	24.25	6.27	6.27
05/12/14	MERC	CwH	Y	9.75	10.28	9.94	1.95	5.44
05/12/14	RRMS	DB	N	42.54	43.30	44.54	4.70	4.8
05/14/14	SQBG	CwH	Y	9.00	9.06	9.32	3.56	4.44
05/16/14	CBL	HSB	Y	18.31	18.89	18.89	3.17	3.6
05/16/14	HDB	CwH	N	44.94	46.18	46.18	2.76	2.87
05/16/14	IBN	CwH	Y	49.64	51.01	51.01	2.76	2.8
05/12/14	RMTI	SQZ	Y	11.55	11.86	9.98	-13.59	2.68
05/12/14	AIQ	DB	Y	31.09	31.83	29.47	-5.21	2.38
05/12/14	ZLC	SQZ	Y	21.95	22.31	22.29	1.55	1.64
05/12/14	PGI	CwH	N	13.00	13.18	13.03	0.23	1.38
05/12/14	STFC	SQZ	Y	22.31	22.59	21.99	-1.43	1.26
05/12/14	ANN	SQZ	Y	40.79	41.29	40.09	-1.72	1.23
05/16/14	BCR	CwH	N	147.53	148.52	148.52	0.67	1.15
05/12/14	ITA	CwH	N	110.34	111.25	107.73	-2.37	0.82
05/13/14	SPNS	SQZ	Y	8.12	8.17	7.92	-2.46	0.62
05/12/14	IHI	SQZ	Y	97.76	98.27	97.29	-0.48	0.52
05/12/14	CMCO	SQZ	Y	27.45	27.58	26.85	-2.19	0.47
05/12/14	NTI	CwH	Y	29.11	29.24	27.77	-4.60	0.45
05/12/14	UEIC	CwH	Y	41.01	41.14	39.82	-2.90	0.32
05/14/14	LEA	SQZ	Y	85.99	86.09	84.56	-1.66	0.12
05/13/14	AMAP	CwH	Y	20.90	20.92	20.89	-0.05	0.1
05/12/14	VRTU	SQZ	Y	36.79	36.9	34.48	-6.28	-4.54
Weekly Average (24 breakouts)							-0.48	2

New Features this Week

Additional Value that we added this week

Following the success of breakouts from a squeeze situation, at least in the first few days after breakout, I've added a new watchlist that I am calling "Squeeze Play Extra". This list is produce by scanning all 6,000+ US stocks that are not already on our watchlists and looking for those that are in a squeeze with positive momentum and positive momentum slope. The list is filtered to include only those stocks that are optionable. There is no minimum price for inclusion on the list.

This new list is accessed from Mine for Candidates > Long Positions > Squeeze Play Extra

This Week's Top Tip

Tips for getting the most out of our site

Introducing Squeeze Play Extra

Our experience with stocks on our watchlists that are in a "volatility squeeze' is that they have the potential to show rapid short term gains as they breakout from the squeeze to the upside. Since the number of chart patterns we look for is limited, the number of stocks that are in a volatility squeeze that we find is also limited. This led me to look for stocks that are in a volatility squeeze that we currently miss.

This new watchlist is comprised of stocks that are in a squeeze but which are not already included on any other watchlist. As with our other watchlists, there is a minimum last close price of $6, minimum 50 day ADV of 30,000 and RS Rank of 80. Also, only optionable stocks are eligible.

Now I have the list, I can begin to work on whether or not the list has value and will be reporting on this in the near future.

Until I have decided if the list has value I will not be issuing alerts.

Let me know your thoughts on this new list on the support forum.

Market Summary

Overview of market direction and industry rotation

Index

Value

Change Week

Change YTD

Trend

Dow

16491.3

-0.55%

-0.52%

NASDAQ

4090.59

0.46%

-2.06%

Down

S&P 500

1877.86

-0.03%

1.6%

1 Week	13 Weeks	26 Weeks	Year-to-Date
Best Performing Index
NASDAQ Composite 0.46 %	S&P 500 2.13 %	S&P 500 4.43 %	S&P 500 1.6 %
Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Toy & Hobby Stores	Toy & Hobby Stores	Medical Practitioners	Toy & Hobby Stores
Most Improved Industry (by change in technical rank²)
Movie Production - Theaters + 54	Foreign Utilities + 83	REIT - Healthcare Facilities + 185	REIT - Residential + 189
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.

Top Breakout Choices

Stocks on our Cup-and-Handle list with best expected gain if they breakout