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.