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

 


 

Futures Higher – New Addition SF Looks Ready to BreakOut

It was a relatively quiet day in the market yesterday, and this was welcomed action after several days earlier this week with an increase in volatility.

This morning futures are edging up.

European markets are all positive in early trading.

Most Asian markets closed with just small losses.

Mainstream investors are waiting for Labor Department officials to release the January jobs report which is scheduled for 8:30 AM ET. People say – “It’s one of the most important measures of the U.S. economy and the results are known to cause markets to swing.”

More importantly…Continue Reading

Market Quiet – Our DPZ and PCH Higher, SCHW Falls

3:20 PM

The major averages are rather quiet today and so are nearly all of our previous breakouts/current holdings.

There are only a few with stand-out action today.

DPZ and PCH are trading rather higher with volume conviction, while SCHW is selling off and slicing support of its 50-day moving average.

Here are the latest portfolio updates on our previous breakouts.Continue Reading

Futures Higher – Several Stocks Looked Poised to BreakOut

After a couple of rough days, futures are higher this morning as of 8 AM.

Most global stock markets are also rising with many key indexes in Europe up by about +1%.

The big news “in the real world” is that Apple (AAPL) reported after the close yesterday, and shares were up +3% premarket. It will be Facebook’s (FB) turn this afternoon.

Also, the Fed will release a statement at 2:00 PM ET and is expected to say it continues to see several interest rate increases this year but will take no further action.

Although the attention has shifted of late from the Fed’s monetary policy more to the government’s fiscal policy such as Trump’s tax cuts, infrastructure programs, and trade policy, investors would like to see a little reassurance from the Fed on the economy, as well.

More importantly…

Of the 9 buyable breakouts we had last week 5 are feeling the pressure of the broader market pullback this week as they are experiencing some technical weakness.

Meanwhile, these 4 – IRMRVL, ASGN, and AGX have decent technical action relative to the environment.

The 9 Stocks which properly confirmed a BUY Signal last week are…Continue Reading

Futures Dipping as BreakOuts Hold Up

After a rather sharp sell-off yesterday, futures are dipping a bit this morning as of 5:30 AM.

As seen on the chart of the Dow – the index fell below initial support of the previous highs.

In the event of a continued pullback, the next level of support is at the previous lows and the near-coinciding 50-day moving average, currently at 19649.

We have several companies reporting earnings (none of them ours) before the open such as; ExxonMobil (XOM), Mastercard (MA), Aetna (AET), Under Armour (UA), Sprint (S) and UPS (UPS).

Also of note, the U.S. Federal Reserve will kick off a two-day meeting to discuss interest rates and monetary policy, today.

Yesterday morning I said the focus will be on our recent breakouts, and it was.

I sent out a complete update before the open on all 9 of the BUYS we had last week, and another update at 3:15 PM.

All-in-all, these stocks held up rather well, especially with the Dow being down -200 midday, and then closing down -122.

Days like yesterday are the days where we see which of our holdings are showing strength/resilience versus which are showing weakness/breaking support.

Let’s take a look at how our 9 latest BUYS closed on Monday.Continue Reading

Dow Futures Lower – All Last Week’s BUYS Updated

After a couple of quiet weeks on Wall Street, the rally got back into gear last week, and in a big way.

The Dow Jones finally cleared the historic 20,000 point hurdle and all the major averages posted new all-time highs by mid-week.

Even with the release of a disappointing GDP report on Friday which came in below expectations, the market’s recent upward bias remained intact, and the major indexes finished higher for the week.

The Nasdaq distribution count is at 5 and the S&P is currently at 4, as the market’s official status continues to be – uptrend.

Notably this morning, the Dow looks like it might give up the 20k level as futures are pointing to a weak open for the famed index.

The market will have plenty to key off of this coming week including the FOMC’s two-day meeting which starts on Tuesday. Also, there are numerous economic reports due out, along with individual companies reporting their Q4 results.

This week we will hear from a fifth of the S&P 500 index, plus five Dow components.

Among those will be tech-heavyweights – Apple Inc. (AAPL) on Tuesday and Facebook Inc. (FB) on Wednesday, then Amazon.com Inc. (AMZN), will report on Thursday.

A little closer to home, we had 19 breakouts in just 3 sessions last week…Continue Reading

A Very Exciting Week Looks to be Ending Rather Quietly

It’s a relatively quiet day in the market, especially compared to the previous three sessions where we had 19 breakouts.

We have no new buys today as of 3:00 PM.

As noted in this morning’s report, I was watching for CLS to give us a possible entry as the company announced earnings after the close yesterday. Shares are up +11% today, yet the stock did not give a chance to prudently get in.

Other TrendLine BreakOuts with noteworthy action today include…

WTS with some nice above average volume (+30%) gains today (+2.3%).

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

Management at TCB announced earnings this morning, before the open and shares opened with a gap lower as the results did not meet Wall Street expectations. We currently sit with +16% gains.

Our VMW reported earnings yesterday after the close, and shares opened this morning with a gap up as they beat street 4Q forecast.

After some nice above average volume (+67%) gains (+1.8%) yesterday to a new multi-year highs, shares of PACW are pulling back today, yet volume is well below average.

That ANGO is still not making any positive progress. The market has been rallying this week, and this stock did not participate.

Shares of ASGN are selling off today with some rather sharp declines of -4% with above average volume. This is a concern, and we now need to see how the stock behaves if it meets support of the 50-day moving average ($43.70).

A recent breakout, MRVL had a bit of a negitive reversal yesterday. Today, shares are sitting tight this afternoon.

After selling off yesterday -2% on above average volume, MPWR is making some gains today, yet volume lacks necessary conviction to negate that weakness.

Finally, RTN is still experiencing some earnings volatility.

As regular reader 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 and which looked poised to breakout that day.

The buy candidates that I find are then assigned their own specific trading criteria such as a Trigger Price and Max Buy Price and then each is listed in our – Stock WatchList: Morning Update and emailed out to subscribers, before the market opens for trading.

You can now receive a free copy of my Stock WatchList: Morning Update report – a concise watch list of high EPS and RS ranked stocks right in your email inbox.

LEARN MORE HERE

 

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