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.

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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.

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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

 


 

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