It should come as no surprise that the number of stocks breaking out fell off considerably in the period between August 17 and August 31, with just 7 break outs. As the market goes, so goes the majority of stocks.
Lets take a quick look at the few that bucked the trend and broke out. Again, you may click here to see a larger image of the screenshot.
You can see by looking at the list, that the few that did break out were high quality companies (6 out of the 7 have a Fundamental Score of 25 or better) and they have fared quite well. Technically, ADSK and IPS look the strongest but both are currently out of an acceptable buyable range.
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Email alerts are coming very soon for breakouts and stocks pulling back to support of the 50 day moving average! Stay tuned.
Probably should lay low on any breakout until we see a little more accumulation in the markets?
Bumby, as I said in my response to an earlier comment, my apologies for the late response to your comment. All opinions and comments are important to me (provided its not blatant spam!). I’ve since resolved the comment notifications issue. Anyway, regarding your comment. Just to clarify I will always post the top breakouts every two weeks regardless of market health, so posting these should not be any inidication of how I feel about the overall market and certainly aren’t recommendations to buy or sell.
The day this post was made (Aug 31) the market actually happened to stage a high volume reversal, which can often mark a bottom to a correction. In this case it did. On Aug 31st, I would have been looking for buy opportunities, but may have scaled into a buy rather than buying a full position all at once. Once a new rally has been confirmed, which it did a few days later, you could initiate a few more positions.