WED 6/7: Major Averages Modestly Higher – Another New BreakOut in RTEC

Richard-James– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.


3:30 PM – Today’s BreakOuts & Portfolios Update

The major averages are all modestly higher in afternoon trade.

We have yet another new buyable breakout today.

This makes 5 so far this week – ALRM (P/L +3.02%), ON (P/L +0.31%), SGMS (P/L +1.42%), OCLR (P/L +4.04%), and now RTEC (P/L +2.14%).

RTEC – Was just added back to the watch list on Tuesday morning, and shares broke out today. I issued a “BUY: TradeTicket Alert” at 12:10 PM while shares were trading at $25.70. Volume is currently +114%.

Chart courtesy of stockcharts.com – Click chart to enlarge.

Current Premium Members can always access all “Current BreakOuts & Buys” here.


2017 Complete Portfolio

Below are stocks from our 2017 Complete Portfolio which have noteworthy action today.

SGMS – Just broke out and confirmed another BUY signal yesterday.

Not making any follow-through gains today, yet is holding up.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

ALRM – After just breaking out on Monday, shares are posting continued gains today with above average volume.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

OCLR – After yesterday’s sharp gains of +8.7%, shares are pulling back some today with a +11% increase in afternoon volume.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

TMUS – Three days of declines with a slight increase in volume.

Shares are now at support of the 50-day moving average ($65.79).

A close below there would be a SELL signal.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

CEVA – Continued gains with above average volume.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

DVMT – Continues holding above support of the 50-day moving average at $66.05.

Has earnings tomorrow before the open.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

PCH – Making a fourth day of declines, yet volume is below average.

Support is at the 200-day moving average ($42.11).

  Chart courtesy of stockcharts.com – Click chart to enlarge.

TSM and DPZ – Both sitting at new highs with no willing sellers.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

FLEX – Continues pulling back, yet volume is below average.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

COO – More new highs today, yet volume lacks conviction.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

 


2016 TrendLine Portfolio

Below are stocks from our TrendLine Portfolio which have noteworthy action today.

NTES – Decent gains again today with volume.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

ABM – Has earnings today after the close.

We sit with +30% gains and can more easily sit through the announcement.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

BWP – Did dip below support of the 200-day moving average ($17.64) this morning.

We sit at about break even.

  Chart courtesy of stockcharts.com – Click chart to enlarge.

Any questions or concerns, please email me directly at james@jamestaulman.com

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About the Founder:

Richard-JamesJames F. Taulman – James served as Editor-in-Chief of the first independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.

Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

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Disclaimer: James Taulman is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.

 

Holiday Weekend – PERFORMANCE STUDY

All Personal Portfolio Buys – May 2017

Richard-James– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.


Below is a concise update on all of the stocks which were BUYS through my Personal Portfolio Service so far for the month of May 2017.

With the current rally continuing to show resilience again this past week, investors should be closely monitoring a concise watch list on a daily basis.

This list should include only high-ranked, fundamentally sound, market leaders, which are technically setting up in bullish bases of consolidation.

As is our mantra – when those stocks break out with volume behind the advance, those are your buys.

2017 continues to be a great year for stocks.

As longer-term readers know, I currently maintain and update several high-ranked stock watchlists.

Toward the end of the week I started adding more stocks to our watch lists which were setting up in bases that were shorter than I usually go off of.

Shorter base breakouts have been working in this bullish environment.

Here were just a few examples of what I came across mid-week…

JKHYICHRZBRASINAHLTANSSSYKISRGRNGMTNBSX, and YUM. You can download a report on these stocks when you sign up for a membership here.

I will continue to include such stocks in this coming week’s watch list updates and as long as they are working.

For each stock on each watch list, I set specific “trading criteria” which consists of a TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE.

RULE: Any stock from a watch list which breaks out above its TRIGGER PRICE while the day’s volume is at least on pace to reach the stock’s TRIGGER VOLUME is conforming our BUY signal.

If you followed the rules and my calls and bought any of my high-ranked selections from this month, or want to learn how –

Here is a detailed update/trading plan for all of the BUYS we have had thus far for the month from my Personal Portfolio Service.

 

SEE ALL OF MAY 2017 BUYS HERE

 


 

CHART UPDATE: 10 Lastest BreakOut Alerts

Early each market morning I am diligently screening through hundreds of high EPS and RS ranked stocks that have solid fundamentals.

I am looking for those select few that are setting up in bullish technical bases which looked poised to possibly breakout.

For the few I find, I assign each their own specific trading criteria such as a TRIGGER PRICE and MAX BUY PRICE and add them to a report I call – the Stock WatchList: Morning Update.

If a stock from that morning report breaks out above its TRIGGER PRICE, I then issue a BreakOut Alert.

Here is a quick chart update on the last 10 BreakOut Alerts.

Some of these stocks are still within a buyable range.

Continued here….

 


 

Monitor Your Positions Closely Here – Set These Support Levels

This latest rally has brought us a flurry of new breakouts. Throughout my 15 years of being in the business, I cannot recall seeing this many stocks breaking out at this rate and confirming BUY signals.

If you been working with me for the past several months – reading my reports, receiving my watch lists, you should be fully invested at this point, or at least have a good number of stocks in your portfolio.

Now what?

As I mentioned in Friday’s Morning Market Update (sign up to receive those daily complimentary updates below) – We will continue not to predict and take things on a stock-by-stock basis. Generally speaking, stocks which break out with volume are BUYS, those that break down below our noted support areas are SELLS.

Here are the guidelines on how I update my trading criteria when a stock is added to my portfolio.

1st SUPPORT: is going to be the highs of the previous base, or the previous resistance. Remember, this is where you set your TRIGGER PRICE from originally. The break above that resistance was the BUY signal. As with any area of resistance – when it is taken out to the upside, then it becomes support in the event of a pullback.

2nd SUPPORT: is usually the 50-day moving average. The only time this will not be the case, is when there is some previous lows, above the 50 DMA. For instance, possibly the lows of the base. Regardless, the 50-day moving average is a formidable area of support that should always be respected.

MAX STOP LOSS: Using the formula shown in the diagram above you will set this criteria at -8% below your BUY PRICE. This is a guide, and I do not recommend setting a SELL STOP order with your broker for that price.

Here is our TrendLine Portfolio with noted support areas for each of our stocks.

CONTINUED HERE

 


 

Futures Sharply Higher – Watching TBI to Confirm a BUY Signal

The Dow’s win streak was halted yesterday after 12 straight sessions of gains, the Blue Chips closed the day lower.

This morning, U.S. futures are sharply higher, (Dow +114) so regardless of any further records being made for the Dow, the major averages and this rally, continue to be very resilient.

World markets are also participating with gains today as European exchanges were all trading about +1% higher just after they opened.

Most Asian markets ended their day with gains, as Japan’s Nikkei jumped +1.4%.

A little closer to home…

CONTINUED HERE

 


 

Why Blindly Buying on Earnings is Too Risky

  – From James Taulman’s – Morning Market Update

I most recently added TREX to the Technical SetUps WatchList on 2/16 as shares were building a base at new highs.

As noted in this past Friday’s Morning report “The stock may trigger a BUY signal by default if its shares trade above the TRIGGER PRICE with the required volume, while keeping in mind that pre-earnings/earnings breakouts can be more rewarding, however they do carry more risk. So, caution is advised.”

This happened on Tuesday as shares opened with a sharp gap up.

As noted at 10:35 AM that day – “At this point, the stock’s volume IS confirming a BUY signal by default. However, this is an earnings breakout, and those carry more risk. Plus, this stock is already trading above its MAX BUY PRICE. This stock is NOT prudently buyable here.”

TREXChart courtesy of stockcharts.com – Click chart to enlarge.

The stock went on to close the breakout day well off of the session highs and actually back below the TRIGGER PRICE.

Yesterday TREX plunged -7.5% with a sharp increase in volume of +322% above the normal rate. This is the latest example of why you can not just blindly buy pre-earnings/earnings breakouts.

Shares closed just above the previous lows or the lows of the latest base.

I have decided to keep this selection on its watch list based on that along with the fact that the company did report decent numbers for the Q1. Earnings increased +85% over the same quarter a year ago, and sales although did not increase as significantly, were still up +7%. Annual earnings estimates for this year at +10%, with a +13% increase expected for 2018.

We will see if the stock can again break out and give us an entry.

GET YOUR NEW! – COMPLIMENTARY REPORT:jtmmu

James Taulman’s – Morning Market Update

Sign up to start receiving or to continue receiving this new informative report directly in your email inbox each market morning.

Every issue contains a concise market commentary, educational points, and several leading stocks which are personally selected by James that look the most poised to break out that day.

  • MARKET COMMENTARY – STATUS
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  • VERY TIMELY AND ACTIONABLE TRADING IDEAS

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Major Averages at New Highs – Develop Your Disciplines

The rally remains resilient, and with the Dow now at 20,624 this clearly puts the once somewhat elusive 20K hurdle more significantly in the rearview mirror. That doesn’t really mean too much, but is interesting to point out to all the naysayers.

We continue to catch stocks which have been breaking out of our watch lists at a dizzying pace. I can not remember seeing this many breakouts week-after-week in my 15-years of being in this business.

Through my Personal Portfolio Service, I called another 9 BUYS this past week.

Even my newer members who follow me there should be fully-invested at this point by just following the guidelines.

This is all by simply following the rules and disciplines which have developed and are a part of the service I provide.

One rule is – I do not pay much attention to the “news”. And good thing I don’t. Just in the past several months I’ve heard that the market is going to crash for a number of reasons. First it was the Fed raising rates, then the Brexit, then if Trump wins, then when Trump gets inaugurated. I hear – be prepared to short this and put puts on that.


“….any of your previous breakouts which are not performing well in this environment can be sold without having to trigger our standard SELL signals…”


On this past Thursday afternoon I got a Skype message from one of my coaching clients who I work closely with on a daily basis that read – “The only caution here in the US is that a lot of the Trump rally and promises have been factored into the positive market.  IF … If there is no follow through on the promises, then the market will certainly correct. That is the talk on the financial stations.”

So, now that is the latest?

I am not saying that the market is never going to come down, pull back, or not ever crash, but – trade what you see – don’t predict. There are advisors, analysts, TV pundits, and day traders on social media trying to predict or develop some kind of one-off thesis based on what they think will be the results of a particular event and also what will be the market’s reactions to it. Don’t listen.

Instead, set and follow a discipline of screening stocks daily and build a watch list of high-ranked, fundamentally sound leaders which are setting up in bullish bases of consolidation. After all, those are the characteristics of the biggest stock market winners in history. If you can not spend an hour or so each morning or evening and $165 a month on screening software – you can use the watch list which I provide daily. A watch list of such stocks will tell you what to do. If they are breaking out to new highs and triggering BUY signals, especially in numbers, there must be something good going on in the market, and if there are no breakouts, then there is nothing to do.

As far as your current positions/previous breakouts – take each on a case-by-case basis. Don’t sell your whole lot just because someone told you at the barbershop or beauty parlor or you heard on Facebook that the world is coming to an end in three months, again. If a particular stock you own is selling off on volume and breaking support, those are your general SELL signals, not someone else’s predictions. Also, stocks which are holding up, making news highs, showing resilience through a couple of bad days in the market, those are your holds.

Again, that is generally speaking. As far as further specifics, as I stated recently in my daily portfolio updates – “….any of your previous breakouts which are not performing [making considerable gains]well in this environment can be sold without having to trigger our standard SELL signals, especially if you need to free up some capital to jump on some fresh breakouts that have possibility of performing better. Don’t sit there with a handful of lagging positions while the market is running…”

Monday, the market will be closed for President’s Day. Gives us another three-day weekend as this is the fourth such sabbatical in the past two months. Although we will not be doing any trading, I will still be in the office taking your emails, calls, and getting caught up on all of our previous breakouts that have recently been added to our portfolios.

As regular readers know, early each market morning I diligently screen through hundreds of high EPS and RS ranked stocks that have solid fundamentals.

I am looking for those select few that are setting up in bullish technical bases that are poised to breakout that day.

I now include those in my new morning report- James Taulman’s Morning Market Update which is offered complimentary to subscribers

Every issue contains a concise market commentary, educational points, and several leading stocks which are personally selected by me that look the most poised to break out that day.

You can now sign up to start receiving

 

LEARN MORE HERE

 

Any questions or concerns, please email me at james@jamestaulman.com.

 


 

BreakOut Alert Update: Torchmark Corporation (TMK – NYSE)

– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

#1 Torchmark Corporation (TMK – NYSE), through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand.

SYMBOL
PROFIT/
LOSS
ADDED TO
WATCH LIST
BREAKOUT
DATE
BUY
PRICE
TMK +2.59% 01-26-16 02-13-17 $75.17

Chart courtesy of stockcharts.com

2/18 UPDATE: This stock broke out for us on Monday as it traded above its TRIGGER PRICE which was posted in that morning’s Stock WatchList Morning Update of $75.15.

From there, shares continued to inch higher – and like the broader market – notched new all-time highs. Volume however lacked conviction on the advance, and this is a bit of a concern.

The stock’s ranks remain strong and the company’s fundamental history is solid, the technical action is fine with the aforementioned caveat of the lack of volume.

Shares do remain above what is near-coinciding support of the highs of the previous base and the 50-day moving average which is currently at $74.27.

Below there we have a 3rd area of support at the lows of the previous base.

Any above average volume declines would of course be the first concern, and a break of support a SELL signal.

As regular readers know, early each market morning I diligently screen through hundreds of high EPS and RS ranked stocks that have solid fundamentals.

I am looking for those select few that are setting up in bullish technical bases that are poised to breakout that day.

I now include those in my new morning report- James Taulman’s Morning Market Update which is offered complimentary to subscribers.

Every issue contains a concise market commentary, educational points, and several leading stocks which are personally selected by me that look the most poised to break out that day.

You can now sign up to start receiving

LEARN MORE HERE

 

Any questions or concerns, please email me at james@jamestaulman.com.

 


 

Futures Lower – 9 Buyable BreakOuts So Far This Week

Happy Friday.

The market posted a rather “flat” day yesterday, as the major averages took a much-needed breather from a historic 6-day run-up.

This morning U.S. stock futures are declining a bit ahead of the opening bell.

European markets are sinking in early trading.

The majority of Asian markets closed the week with small losses.

The headline of our Market Update yesterday read – “Watching TBI, TSM and TREX to Break Out

We did have TSM break out and confirm a BUY signal as it traded above its TRIGGER PRICE while volume was on pace to be more than +50% above the stock’s average volume.

TSM was added to the Technical SetUps WatchList on the morning of 2/14 as shares were setting up in a base of consolidation between $28$31 while the stock was trading near all-time highs, yet not extended from support of the 50-day moving average.

As I reported yesterday morning – “Had some very nice action on Monday with gains of +3.2% with a +60% increase in volume. I am expecting some follow-through with a breakout to new highs. Ranks are solid.”

I issued a BreakOut Alert at 10:48 AM which stated – “At this point, that stock’s volume is confirming a BUY signal.”

 

Regardless of how ultimately the TSM trade works out, this is how it is done.

Chart courtesy of stockcharts.com – Click chart to enlarge.

Going forward, any above average volume declines would of course be the first concern. We have our noted support levels for this stock listed for Premium Members on the Current Portfolio Coverage page here.

Early this morning, I ran my routine stock screens…

CONTINUED HERE