There was no newsletter last week due to the July 4 holiday. Since our last report the NASDAQ composite has fallen below its 50 day average and our trend indicators are now negative for all three major indexes. However, the NASDAQ has risen in the last three days and the 50 day average now forms a resistance level. Whether or not that level gets tested depends in part on the German response to  the latest reform proposals  from Greece. At the time of writing, it appears that the Germans are holding out for even more austerity which will only result in a further fall in Greece's GDP and reduce further their ability to repay their debt.

A download tab was added to each watchlist at a user's request. Clicking this tab will download the watchlists in .csv format suitable for import into any spreadsheet package such as Excel.

Two Potential Breakouts for this Week

I am not recommending you buy these stocks but they may be worth watching.

Our volatility squeeze watchlist looks for stocks that have fallen but are now ascending the right side of a cup and may have stalled in their ascent creating a volatility squeeze. We recognize a volatility squeeze when the Bollinger Bands lie within the Keltner Channel. These situations present a buying opportunity when their upward movement resumes.

Investment Technology Group, Inc. (ITG) is an independent execution and research broker that partners with global portfolio managers and traders. ITG is starting to ascend the right side of a cup and in the process has formed a volatility squeeze situation. Heavy buying on Monday was resumed in the last two days with positive price movement and volume that was well above average. This indicates that ITG may move higher next week, overall market conditions permitting. We attribute a relative strength rank of 90 to ITG placing its 12 month price performance in the top 90% of the 6000+ stocks we follow.


Our Cup and Handle Watchlist finds stocks that are in a cup and handle chart pattern.

Vascular Solutions, Inc. (VASC) is a medical device company which creates minimally invasive medical devices. Since setting a pivot price of 35.98 on 6/22/15 the handle has shown an upward trend despite generally unfavorable market conditions. On Friday the stock closed higher on above average volume. Although a breakout may be a few days away, it is worth following in the short term. We attribute a relative strength rank of 91 to VASC placing its 12 month price performance in the top 91% of the 6000+ stocks we follow.