Weekly Newsletter 08/21/15
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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 underperformed the other two major indexes with a drop of 6.8% for the week (Friday to Friday close). The index is now underwater for the year for the first time and is officially in a correction with a drop of 10% from its most recent high. The drop has been precipitous but some analysts have said this was overdue. We need only look back a year to see a similar correction, and while history doesn't necessarily repeat itself, we may see a similarly rapid rise as short sellers rush to cover.

All our market trend indicators are down, which augurs ill for the number of breakouts that can be expected in the near future. This would be  a good time to sit on the sidelines and wait for a recovery. Note that this can happen before our trend indicators turn up, as  they are lagging indicators, but signs  of a steep rise would be an opportunity to begin reentering the markets.

NASDQ Composite chart
 Weekly Breakout Report  

The number of breakouts fell to 22 this week.  gains were in general meager and the average gain was  negative by Friday's close. This reinforces the point made above,  that staying on  the sidelines  is a good short term strategy.

Breakouts for Week Beginning 08/17/15
Brkout Date Symbol Base Squeeze BrkoutOut Price Brkout Day Close RS Rank* Last Close Current % off BOP Gain at Intraday High
08/17/15 RDCM SQZ Y 10.52 11.27 89 11.08 5.32 10.74
08/18/15 TBPH HSB N 12.62 12.79 11 13.12 3.96 6.58
08/17/15 PAYC CwH N 38.45 40.91 96 37.93 -1.35 6.4
08/18/15 WCG CwH N 90.41 95.98 88 88.62 -1.98 6.16
08/17/15 ADHD SQZ Y 8.71 9.23 95 8.31 -4.59 5.97
08/20/15 CYBX DB N 62.88 64.74 70 66.48 5.73 5.73
08/18/15 ADUS CwH N 29.40 30.66 91 29.83 1.46 4.29
08/20/15 LLY SQZ Y 83.90 87.33 91 84.53 0.75 4.09
08/18/15 RDCM SQZ Y 11.20 11.65 91 11.08 -1.07 4.02
08/17/15 OXM SQZ Y 87.49 90.4 95 82.42 -5.79 3.33
08/17/15 ATEN CwH N 7.20 7.38 95 6.69 -7.08 2.5
08/17/15 AGII SQZ Y 57.78 58.15 85 57.69 -0.16 2.42
08/18/15 ROST CwH Y 55.22 56.53 92 50 -9.45 2.37
08/19/15 DLTR SQZ Y 79.39 80.92 86 76.35 -3.83 1.93
08/18/15 IPCC SQZ Y 79.66 80.48 81 79.97 0.39 1.63
08/17/15 MBLY CwH N 63.17 64.14 96 51.81 -17.98 1.54
08/19/15 FBR CwH N 14.22 14.40 83 13.66 -3.94 1.27
08/20/15 TRAK SQZ Y 62.43 62.96 96 62.93 0.80 0.85
08/18/15 WCIC CwH N 25.64 25.80 90 25.05 -2.30 0.62
08/17/15 PRGO SQZ Y 196.28 197.06 88 186.89 -4.78 0.4
08/20/15 PPO DB N 60.26 60.47 85 60.46 0.33 0.35
08/20/15 CVGW SQZ Y 54.52 54.59 91 54.49 -0.06 0.13
Weekly Average (22 breakouts) -2.07 3.33
*RS Rank on day before breakout.
 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

Breakoutwatch Pricing Restructuring  Imminent

I am working on a simplification of our service offerings which will also be accompanied by pricing revisions. I hope to have completed that by next weekend (Saturday, August 29). If you are considering subscribing, or renewing, but have reservations  about the value we offer, then I suggest waiting a week until the new value proposition is announced.
 
 Market Summary Overview of market direction and industry rotation
Index Value Change Week Change YTD Trend
Dow 16459.8 -5.82% -7.65% Down
NASDAQ 4706.04 -6.78% -0.63% Down
S&P 500 1970.89 -5.77% -4.27% Down
 Best Performing Index
1 Week 13 Weeks 26 Weeks Year-to-Date
S&P 500
-5.77 %		 S&P 500
-7.53 %		 NASDAQ Composite
-5.04 %		 NASDAQ Composite
-0.63 %
 Best Performing Industry (by average technical score over each period)
1 Week 3 Weeks 13 Weeks 26 Weeks
Medical Equipment Wholesale Tobacco Products - Other Tobacco Products - Other Drugs Wholesale
 Most Improved Industry (by change in technical rank2)
Music & Video Stores
+ 32		 Telecom Services - Domestic
+ 76		 Tobacco Products - Other
+ 175		 Tobacco Products - Other
+ 208
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
Category
Symbol
Company Name
Expected Gain1
Best Overall CXDC China XD Plastics Company Limited 111
Top Technical CXDC China XD Plastics Company Limited 111
Top Fundamental PAYC Paycom Software, Inc. 48
Top Tech. & Fund. PAYC Paycom Software, Inc. 48
1This is the gain predicted by our Expected Gain model if the stock breaks out. Expected Gains for all cup-and-handle stocks are published on our site.
 Top Second Chances Stocks that broke out this week and are still in buyable range
Category
Symbol
Company Name
Expected Gain1
Best Overall WCIC WCI Communities, Inc. 61
Top Technical PAYC Paycom Software, Inc. 49
Top Fundamental PAYC Paycom Software, Inc. 49
Top Tech. & Fund. PAYC Paycom Software, Inc. 49
1This is the gain predicted by our Expected Gain model after the stock has broken out which uses the volume on breakout as a predictive term. Because the model variance is +/- 38% the expectation can be negative.
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