BreakoutWatch.com Weekly Review for 06/28/2014

You are receiving this email because you are or were a BreakoutWatch.com subscriber, or have subscribed to our weekly newsletter. This newsletter summarizes the breakout events of the week and provides additional guidance that does not fit into our daily format. It is published each weekend.

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

After bumping up against resistance all week the NASDAQ finally broke through on strong volume on Friday. The reason for volume being more than double the 50 day average was unclear, but the tech sector was buoyant on the successful IPO of GoPro which rose 38% above its initial offering price.

NASDAQ Comp.

Weekly Breakout Report

The number of breakouts fell slightly from last week but remained at a high level. The overall market strength meant that our watchlists were dominated by the cup with handle and Squeeze Play patterns. The top performer was WUBA which I discuss further in my Top Tip below.

Brkout Date	Symbol	Base	Squeeze	BrkoutOut Price	Brkout Day Close	Last Close	Current % off BOP	Gain at Intraday High
Breakouts for Week Beginning 06/23/14
06/26/14	WUBA	CwH	N	46.73	52.22	54.9	17.48	20.91
06/26/14	MEI	CwH	N	34.18	37.68	36.79	7.64	12.14
06/25/14	MEG	SQZ	Y	19.37	20.33	20.45	5.58	9.09
06/25/14	SIMO	CwH	N	18.47	18.84	19.84	7.42	7.69
06/23/14	BCRX	CwH	N	12.00	12.00	12.52	4.33	6.25
06/25/14	GTN	CwH	N	12.16	12.20	12.79	5.18	5.59
06/27/14	EGO	CwH	N	7.24	7.56	7.56	4.42	5.39
06/25/14	CBK	CwH	N	8.72	9.04	8.93	2.41	4.93
06/27/14	CLDN	CwH	N	14.47	15.00	15	3.66	4.63
06/27/14	HHC	SQZ	Y	152.66	158.11	158.11	3.57	3.57
06/27/14	NRF	SQZ	Y	17.28	17.64	17.64	2.08	3.41
06/23/14	FSLR	CwH	N	69.75	70.15	71.4	2.37	3.23
06/24/14	BPL	SQZ	Y	80.97	81.25	82.59	2.00	3.01
06/27/14	BAS	SQZ	Y	27.91	28.32	28.32	1.47	2.87
06/25/14	NCS	CwH	N	18.85	18.98	19.05	1.06	2.81
06/25/14	BDC	CwH	N	77.05	77.17	78.83	2.31	2.79
06/27/14	PATK	CwH	N	43.46	44.19	44.19	1.68	2.6
06/27/14	AHT	SQZ	Y	11.24	11.51	11.51	2.40	2.4
06/23/14	PZE	CwH	N	6.67	6.83	6.33	-5.10	2.4
06/23/14	ACT	SQZ	Y	221.19	221.35	223.27	0.94	2.28
06/27/14	CRR	CwH	N	147.25	149.94	149.94	1.83	2.16
06/27/14	MMSI	SQZ	Y	14.95	15.2	15.2	1.67	1.94
06/23/14	IPXL	SQZ	Y	30.10	30.36	30.25	0.50	1.93
06/27/14	IGTE	SQZ	Y	35.25	35.81	35.81	1.59	1.9
06/23/14	INVN	CwH	N	22.09	22.45	21.99	-0.45	1.63
06/24/14	IDXX	SQZ	Y	132.72	134.38	133.71	0.75	1.63
06/27/14	ZINC	CwH	N	17.90	18.15	18.15	1.40	1.56
06/27/14	GMT	SQZ	Y	66.38	67.25	67.25	1.31	1.39
06/27/14	MPO	CwH	N	7.34	7.40	7.4	0.82	1.09
06/27/14	LPI	CwH	N	30.72	30.74	30.74	0.07	0.98
06/27/14	ALKS	CwH	N	50.88	50.94	50.94	0.12	0.14
Weekly Average (31 breakouts)							2.66	4.01

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

Cup and Handle Analysis - WUBA

WUBA

If you had studied the chart for WUBA on Wednesday evening (6/25/14) there were three indications that this could be a strong breakout:

On 6/11 there was a strong breakout from a squeeze situation. You can see the stock was ascending the right side of a cup at the time before forming the pivot of a cup and handle on 6/18. While ascending the cup there was a strong breakout on 6/11 from a squeeze situation. This strong squeeze breakout was an indication that there was potential for the stock to go higher. Note that the RS for the stock before the squeeze breakout was only 34 - well below the 70 that is needed for it to qualify for our squeeze play watchlist, which looks for stocks in the right side of a cup.
The handle showed an almost perfect formation - falling on lower volume after the pivot and then rising on progressively higher volume before the breakout. (see Anatomy of a Cup-with-Handle Chart Pattern).
As the stock rose in the handle there was quite strong buying pressure with volume at the average daily volume level and momentum (look at the lower chart) was increasing.

These factors didn't guarantee a breakout on 6/26 but they increased the odds. Trading is a game of probabilities so you must look for the little things that can give you an edge.

Market Summary

Overview of market direction and industry rotation

Index

Value

Change Week

Change YTD

Trend

Dow

16851.8

-0.56%

1.66%

NASDAQ

4397.93

0.68%

5.3%

S&P 500

1960.96

-0.1%

6.09%

1 Week	13 Weeks	26 Weeks	Year-to-Date
Best Performing Index
NASDAQ Composite 0.68 %	NASDAQ Composite 5.56 %	S&P 500 6.49 %	S&P 500 6.09 %
Best Performing Industry (by average technical score over each period)
1 Week	3 Weeks	13 Weeks	26 Weeks
Toy & Hobby Stores	Toy & Hobby Stores	Toy & Hobby Stores	Toy & Hobby Stores
Most Improved Industry (by change in technical rank²)
Silver + 43	Silver + 134	Foreign Utilities + 200	Foreign Utilities + 210
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