The number of breakouts picked up dramatically to close out October with 44 stocks clearing pivots in the period. However, the success rate was below average (average success rate is somewhere in the neighborhood of 65%) with just over half (25) ending the period with a gain.

I’ve provided a screenshot of the first few top breakouts at the end of October.  As always, you may see a larger version of the screenshot of the database.

The biggest winner in the period was Wesco International (WCC), a large distributor of electrical parts, with a gain of 25% since breaking out on Oct. 17th.  It broke out to an all time high 3 days later with very heavy volume and is currently consolidating those gains.

While the number of stocks ending the period with a gain was less than average, no stock ended the period with a loss of 8% or more, which would indicated a failed breakout.  The 2 worst performing breakouts in the period belong to Oxford Industries (OXM), a clothing retailer and NDS Group (NNDS), a fast growing provider of solutions for the secure delivery of entertainment and info to television set top boxes and IP devices.  Each ended the period with a 5% loss, but both continue to look OK technically and remain above support of the 50 day moving average.

If you’d like to see the SelfInvestors.com Breakout Tracking database in action and get the full list of breakouts before they happen, you can try it out for free for 30 days with PayPal.  SelfInvestors.com free members may sign up by logging into there profile page or you may create a new account and sign up for the premium membership trial.

Today marks the first post where I’ll take a look at a particular screen of the SelfInvestors.com database.  A couple times a month I’ll run my custom stock screener and spit out a few stocks that might be worth watching, based on various criteria such as support levels, earnings estimates, relative strength, fundamental rank, technical rank, demand, etc.  Today’s screen spits out stocks that are above the 50 day moving average with an RS rating of above 70. 

Stocks that have held up during this latest correction are most likely to lead the way when the market turns up, so you’ll want to keep an eye on these gems.  The list is sorted by Total Rank by default, but you can sort by any column within Excel.  Only a screenshot of the first few are available here, but in order to access the full Excel download of the screen you’ll need create an account with SelfInvestors.com.  It’s entirely free and only takes a second.. Anyway, you may see a much larger screenshot of the screen and sign up for the full excel download here if you wish.

I look forward to the day when we all have monitors that are several feet across.. only then can I fit everything I want on one page!

Another dismal two weeks for breakouts just as it was at the end of September with a total of just 10 breakouts.  The two top ranked stocks breaking out in the first two weeks of October, HDFC Bank (HDB) and Netlogic (NETL) reversed sharply after breaking and are 13% off the pivot point.  However, half of the breakouts managed to produce gains led by Nutrisystem (NTRI), which ended the period up 11% from the pivot.

As always, you may see a larger version of the screenshot of the database.

The stocks that did breakout and remain in a buyable range.. Online Resources (ORCC), Healthextras (HLEX), IRIS International (IRIS) and Adams Respiratory Therapeutics (ARXT) all look strong and may provide an opportunity for quick profits during a relief rally.

I would have liked to have posted this over the weekend, but… ok, I won’t make excuses.  Better late than never.  Considering the volatile market at the end of September, which ultimately ended with little change in either direction, breakout stocks fared quite well.   In the period, there were a total of 30 breakouts from consolidation, with 21 ending the period with a gain.  This was about in line with the number and success of rate in the first part of September.

As always, please click here for a much larger screenshot image of the top breakouts screen.

As far as specific industries, it was quite varied for the most part, but the clear winner was steel related stocks just as it was in the first part of September when 5 steel stocks broke out (although in the last 2 days they have all taken a beating).  This time around, Quanex (NX), Cleveland Cliffs (CLF), Companhia Siderurgic (SID) and Posco (PKX) broke out of bases.

The biggest winner was Kongzhong Corp (KONG), the Chinese provider of wireless interactive entertainment, which ran up 15% soon after breaking out.  The stock also happens to be the highest rated breakout (along with Gilead Sciences) for the period. The biggest loser was Resources Connection (RECN), which sold off after reporting earnings and ended the period down 4%.

Two stocks showing the greatest demand, as indicated by their DI Scores were Global Payments (GPN), an electronic transaction processing company AND Zygo Corp (ZIGO), a supplier of optical components and modules for the telecommunications and semiconductor industries.  Both stocks are well out of a proper buy range though.

For more on the DI scores and other tracking data of SelfInvestors.com, you may like to have a look here.

I want to take a quick look at a couple of nice charts.  First one is of Kongzhong (KONG), which broke out for a second time in the right side of its base and took off like a rocket (another leader in this space, Netease (NTES) has been doing the same).  There are times when a stock will offer a couple of different buy points, so if you missed the first one, keep an eye on the stock for a pivot higher up in the base.  .. and if you missed that, many stocks will pull back to the breakout point offering yet another chance.  It pays to keep an eye on past breakouts.  Also, notice the nice support at the 50 day moving average.

The wireless telecom stocks have been having a nice run and one of the nicest looking breakouts in this industry comes from Comtech Telecom (CMTL).  Although the stock formed a nice looking, shallow, double bottom base, I wouldn’t have purchased on a break above the middle peak because the volume just wasn’t there.  A high volume gap up above the handle formation offered a better entry point.  The breakout remains healthy despite heavy selling in the market the past 2 days.  These are the kinds of stocks you want to pay attention to because if the market turns around, it’s these stocks that will be the first to take off. 

Google continues to defy market weakness today and is making a run at all time highs with very strong volume.  It will have a tough time breaking out to all time highs in a difficult market (which after yesterday’s move, appears to be where we are headed).  But if the market can get going again, Google looks poised to take off. 

Below is a portion of the Stock Watch report I sent out to premium members yesterday, which takes a look at the chart of Google.  ________________________________________________________________________________

Google broke out of a nice looking base (its first since the IPO) in mid April after reporting earnings that smashed estimates and ran up nearly 50%.  Since that time, it’s been forming another outstanding looking base with tight price action throughout and retreating volume at the bottom.  The price action indicates that the stock is still out of the eye of the general public.. for now.  Google is the kind of stock that you’ll hear talked about at cocktail parties.. the kind of stock everyone one wants to own.  I don’t think we’re close to that stage yet, but if it can break out strongly from here, you can bet that Google running up towards $400/share will be a very hot topic.  That kind of exposure often leads to climax moves where the stock moves 10 – 15% in a day.  It’s at that point, you’ll hear the stock mentioned by your friends and relatives.. and you’ll know to get out.  It will be fun to watch this one.

It’s time again for another rousing edition of top breakouts for the past two weeks.  Are you ready?  I know you can hardly wait, so lets get right to it.  The past two weeks saw a nice pick up in breakouts after a dismal last 2 weeks of August in which there were only 7 breakouts in my tracking system.  In fact the first 2 weeks of September saw a nearly 5 fold increase from the previous 2 weeks with a total of 33 breakouts..

Leading the way were big breakouts in Neoware Systems (NWRE) with a gain of 26% and Minas Buenaventura (BVN) with a gain of 18%.

On the downside, Stryker Corp. (SYK) led the way with a 7% loss as it reversed sharply after breaking out and has slipped below support of the 50 day moving average.

In looking at the data for the last 2 weeks, one industry group that stood out was steel.  Four steel related issues broke out in the first 2 weeks of September – Nucor (NUE), Commercial Metals (CMC), Quanex (NX) and Gerdau (GGB).  5 out of the top 10 breakouts listed below are metal related.

Here’s a snapshot of the top 10 breakouts (it should be noted that there were several companies with a total rank of 48 that broke out and the companies that appear in this image aren’t necessarily in better shape than those that don’t appear).  To see a larger, readable image please click here.

Topping the list this time around is Mechel Steel (MTL), the Russian steel provider.  The stock broke out a few days ago, but it was not an impressive breakout.  Just because a stock is highly ranked and looks good technically doesn’t mean it’s an automatic buy.  The volume at the breakout just wasn’t there, so this is a position I would have avoided.

Of the stocks on this list that remain in a buyable range, I think Pioneer Drilling (PDC) looks like a solid play at this point as does Essex Corp (KEYW), but I’d want to see Essex break above 25 convincingly.  It cleared the left side of a cup formation without forming a handle last week, but it appears it will form a high handle from here (so I’ll be adjusting the pivot in the database to reflect this).  Anyway, here’s a chart of Pioneer Drilling… it broke out of a range between 14 and 17 this week to all time highs and buy volume is good.  In fact, the buy volume vs. the sell volume has been very good over the past couple months after carving out that funky looking base.  That ugly base took the stock out of consideration for me a few months ago, but the action since then has been quite good.  An opportunity worth considering.

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If you’d like to see the SelfInvestors.com Breakout Tracking database in action and get the full list of breakouts before they happen, you can try it out for free for 30 days with PayPal.  SelfInvestors.com free members may sign up by logging into there profile page or you may create a new account and sign up for the premium membership trial.

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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.

If you’d like to see the SelfInvestors.com Breakout Tracking database in action, you can try it out for free for 30 days with PayPal.  SelfInvestors.com free members may sign up by logging into there profile page or you may create a new account and sign up for the free trial.

Email alerts are coming very soon for breakouts and stocks pulling back to support of the 50 day moving average! Stay tuned.

As the market retreats from the highs, the number of breakouts have been cut in roughly half compared to the last 2 weeks of July.  Also, the success rate has dropped from 77% to 47%.  In the first 2 weeks of August, 34 stocks broke out, with 16 currently holding a gain at the end of the 2 week period.

The biggest loser was Valley Forge Scientific (VLFG), which reversed course sharply after bolting out of a short base on very heavy volume.  It’s a high risk, high reward stock that didn’t reward traders this time around, losing 28% after breaking to new highs.  However, it appears the stock may be finding some support at $4/share.

The biggest winner was United Therapeutics (UTHR), which gapped up to new highs with record volume after another outstanding earnings report in which the company smashed estimates.  It’s tacked on 22% from the previous high in the past 2 weeks.  The company also happens to be one of the highest ranked companies in the SelfInvestors.com Breakout Tracker database.

The following is a screenshot of one of the several filters of the SelfInvestors.com Breakout Tracker database, which allows you to pinpoint opportunities in the world’s fastest growing companies very quickly.  The screenshot belows shows breakouts of the past 2 weeks with a rank of 50 (out of 60) or better.  Of course, the more powerful screen is the screen that lists stocks BEFORE the breakout – that is available to premium members of SelfInvestors.com. 

(The larger pop up image is still a bit difficult to see, so I’ve created a separate page for viewing this screen).

Sitting atop the list of highest ranked breakouts is Quality Systems (QSII), the provider of software and services that enable the shift to electronic medical record keeping.  Its a stock I highlighted here before its earnings report several days ago and it remains outside of an acceptable buy range.  A return to the pivot, may offer a nice opportunity to initiate a position.

Apple Computer (AAPL)
appears once again here as it did in the last Breakout Highlights report.  A couple weeks ago I mentioned that it broke from a not so well formed double bottom base, which provided an initial entry.  Well, if you missed that opportunity, Apple offered another on Friday as it bolted to all time highs from a nice looking handle formation on very good volume.

It’s about that time again to run through some breakout highlights of the past couple weeks.. and there have been many.  In the past two weeks (using the 10 trading days between July 19th and July 29th), a total of 61 breakouts have occurred and of those 61 breakouts, 47 currently have a gain (through Friday’s data).

The biggest gainer award belongs to LMI Aerospace (LMIA).  The manufacturer of aluminum and specialty alloys for the aerospace, tech and commercial sheet metal industries has vaulted 28% since breaking out on July 22nd and is at 6 year highs.

The biggest loser award belongs to Schmitt Industries (SMIT).  The manufacturer of electronic and mechanical components for machine tool products and laser measurement systems worldwide, reversed sharply after breaking out on July 19th and is down 18% from the pivot.

The following is a screenshot of one of the several filters of the SelfInvestors.com Breakout Tracker database, which allows you to pinpoint opportunities in the world’s fastest growing companies very quickly.  The screenshot belows shows breakouts of the past 2 weeks with a rank of 50 (out of 60) or better.  Of course, the more powerful screen is the screen that lists stocks BEFORE the breakout – that is available to premium members of SelfInvestors.com. 

(The larger pop up image is still a bit difficult to see, so I’ve created a separate page for viewing this screen.)

At the top of the list is Apple Computer (AAPL), which isn’t too much of a surprise.  The stock gapped up with heavy volume out of a "less than perfect" double bottom base after reporting strong earnings, which presented a first buy point.  Many stocks will provide a few different entry points while carving out the right side.  I like to initiate a position at the first entry point and possibly add smaller increments to a position upon further breakouts.  For example, in this case maybe I add a full position after the stock breaks out above 41, then add a smaller position to that should it break out above the handle that is currently forming at 44.48.   Another way to play this position is initiating a position on a return to the pivot around 41, if you missed the first entry point.  It just may provide that entry point, which would be low risk considering there is strong support there.

Considering USANA Health Sciences (USNA) exhibits outstanding fundamentals and one of the best looking bases i’ve come across recently, it’s also no suprise that it sits atop the "Top Breakouts" list.  The stock broke Friday and tacked on more gains today.. I second Paris Hilton when I say "that’s hot."  Did I just say that?