Breakouts for Aug 23rd: The first pick, HXL, made a picture perfect break of a low volume, 2-month consolidation. The only bearish concern is the negative divergence in the MACD trigger line, but the fact it remained over zero at the time of its crossover is a bullish continuation signal. There was no stock related news to account for today's breakout. The second pick, MAC, took a hard hit in April but recovered and broke a 2-month consolidation on higher volume following positive REIT sector news. Concern remains in the technicals, which have yet to confirm the breakout and remain stuck in bearish divergences (MACD and slow stochastics). The ambitious price target is based on a confirmed break of $54.35, which by no means is guaranteed in an interest rate rising environment. The third pick, MSS, is wedged between support and resistance, but a break of the latter leaves no overhead resistance. The stock has traded inside a broad ascending triangle initiated in December. Breaks of triangles extend to the width of the widest part of the triangle, but often mark the last step of the move. So the current breakout is likely the last steps of the rally started in 2002 off $1.80 lows. There was no stock related news to account for today's breakout.

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"IBD" refers to Investors Business Daily