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.

 


 

Five New Watch List Additions – Watching UBNT for a BreakOut

Although the Trump inauguration has come and gone, investors still seem to be in a wait-and-see mode.

This morning U.S. stock futures are holding steady while most European markets edged higher in early trading.

Asian markets ended the day with mixed results.

Today, we have a flurry of earnings reports coming out before the open, and we can expect those reactions to have some influence on the major averages’ direction.

Releases due before the bell include the following: Johnson & Johnson (JNJ), Travelers (TRV), DuPont (DD), Alibaba (BABA), Verizon (VZ), and 3M (MMM).

What I noted a few weeks ago we are now seeing, as more individual stocks continue building new bases to potentially buy off of, while our watch lists have grown rather steadily.

Speaking off, I ran my routine stock screens early this morning and added another five stocks to the Technical SetUps WatchList.

At this point, we have 14 stocks on our Technical SetUps WatchList and another 11 on our TrendLine SetUps WatchList. There are currently no stocks which meet the strict criteria for the High-Ranked Leaders WatchList.

Of those 25 set ups, UBNT looks poised to break out as its shares traded +2.6% higher yesterday with a +50% increase in volume.

The company has a solid fundamental history and is overall highly ranked.

Shares are building a base at new all-time highs and just +5.5% above the stock’s 50-day moving average.

I consider this technically ideal as once this leader breaks out and triggers a BUY signal, there is no resistance/overhead supply in the way of any further possible gains. In the event of a pullback, we have sound support (50 DMA) just below our BUY price.

TRADING CRITERIA

SYMBOL

LAST ADDED TO WATCH LIST TRIGGER PRICE TRIGGER VOLUME MAX BUY PRICE
UBNT $60.09 01-24-17 $60.58 546,750

$63.61

Going forward, any gains above the TRIGGER PRICE while the stock’s volume is at least on pace to make the TRIGGER VOLUME, would have this candidate buyable up to the MAX BUY PRICE.

My standard formula for MAX BUY PRICE:
TRIGGER PRICE x 1.05

Additional set-ups from our watch lists which should be monitored closely today for a breakout include: BERY, EXP, ORBK, and MCHP.

Also, we have TXN which is currently on our Technical SetUps WatchList due to announce earnings today after the close. We can likely see some volatility before the session ends, and a possible either-direction gap at tomorrow’s open.

Although this stock may trigger a BUY signal by default if its shares trade above the TRIGGER PRICE of $75.35 with the required volume, keep in mind that earnings breakouts do carry more risk. So, caution is advised.

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

NOTE: We are still live-testing this new version of this report. There are several new features and enhancements slated for 2017. Any feedback is welcomed and appreciated.

 

ALL OF TODAY’S WATCH LISTS ALONG WITH
ANNOTATED CHARTS ARE HERE

 


 

SUN 12/25: ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA – Nasdaq) – PORTFOLIO UPDATE

PROFILE: ULTA Salon, Cosmetics & Fragrance, Inc. is the largest beauty retailer in the United States. It operates specialty retail stores, which offer an assortment of branded and private label beauty products.

Charts courtesy of StockCharts.com

LATEST ANALYSIS 12/25: Trading was quiet again this past week as volume was well below the normal rate.

Shares continued to hold just above the 50-day moving average and just below previously made new highs.

With the recent successful test of the 50 DMA on 12/12, we now have that level as our 1st SUPPORT which is currently at $250.69.

Our 2nd SUPPORT has been moved to the 200-day moving average, currently at $236.51.

A close below there would be the final sell signal.

MORE HERE: Trump May Slap a Tax on Imports — Here Are Retail’s Biggest Winners and Losers

 


 

SUN 12/25: MaxLinear, Inc. (MXL – NYSE) – PORTFOLIO UPDATE

PROFILE: MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide.

This stock was most recently added to the High-Ranked Leaders WatchList on 2/5/16 as its shares were setting up in a base.

The stock broke out on 3/4/16 as shares traded above the TRIGGER PRICE of $17.85 while the day’s volume was well on pace to make the TRIGGER VOLUME. This bullish action always confirms a BUY signal.

Later that day MXL did trade back below its TRIGGER PRICE, and this may happen on occasion.

As I noted that weekend – “…if you bought the breakout earlier that day, you are following the rules, and doing it right. You should now treat this like any other trade, and watch Monday’s action for any signs of weakness. An initial indication would, of course, be if the stock continues to pull back with an increase in volume.”

Charts courtesy of StockCharts.com

LATEST ANALYSIS 12/25: This holding has been in a steady uptrend since the stock found support at its 200-day moving average on 12/1.

Since losing -11% the week before that uptrend began, the stock has consecutively closed higher week-after-week, +6.9%, +3.1%, and then another +3.7% this past week.

Shares made some decent price progress on Monday with session gains of +4% backed with a +37% increase in volume.

As I noted here last weekend, it is important to realize that although those are some bullish points (weekly gains, uptrending, finding support) the advance from support for the most part has lacked volume conviction.

The daily trading volumes have been below average for every session on the move higher (except this past Monday’s), and still the two biggest volume days were down days.

This remains a growing concern as shares are at resistance of the previous highs (top blue line on the chart below at $22.30).

As I have been noting continuously in my daily afternoon updates to all Personal Portfolio Members (here) – “Shares are at resistance of the previous highs.”

At this point, our 1st SUPPORT remains the rising 200 DMA ($19.47), and any considerable trading below there or a close below there would be the FINAL SELL SIGNAL.

 


 

SUN 12/04: ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA – Nasdaq) – PORTFOLIO UPDATE

PROFILE: ULTA Salon, Cosmetics & Fragrance, Inc. is the largest beauty retailer in the United States. It operates specialty retail stores, which offer an assortment of branded and private label beauty products.

ulta2

Charts courtesy of StockCharts.com

LATEST ANALYSIS 12/04: Shares experienced some expected volatility on Friday after the compnay reported fiscal third-quarter profit of $87.6 million and said it had a profit of $1.40 per share.

The results beat Wall Street expectations.

Friday’s low tagged the 50-day moving average of $245.92, then shares closes the week just above that important technical level.

Let’s keep in mind that there may be some continued volatility on Monday.

With this latest look at the company’s actual financials, we can see that those continue to be within our guidelines. However, some of the stock’s ranks are falling such as the Group Rank and the Accumulation/Distribution Rank.

We are going to keep our 1st SUPPORT at the 200-day moving average, currently at $229.71, and a close below there would be the final sell signal.

MORE HERE: Ulta Salon, Cosmetics & Fragrance Inc. Beats Expectations With Record Sales Growth

 


 

SUN 12/4: MaxLinear, Inc. (MXL – NYSE) – PORTFOLIO UPDATE

PROFILE: MaxLinear, Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide.

This stock was most recently added to the High-Ranked Leaders WatchList on 2/5/16 as its shares were setting up in a base.

The stock broke out on 3/4/16 as shares traded above the TRIGGER PRICE of $17.85 while the day’s volume was well on pace to make the TRIGGER VOLUME. This bullish action always confirms a BUY signal.

Later that day MXL did trade back below its TRIGGER PRICE, and this may happen on occasion.

As I noted that weekend – “…if you bought the breakout earlier that day, you are following the rules, and doing it right. You should now treat this like any other trade, and watch Monday’s action for any signs of weakness. An initial indication would, of course, be if the stock continues to pull back with an increase in volume.”

mxl2-1

Charts courtesy of StockCharts.com

LATEST ANALYSIS 12/4: This selection lost a whopping -11% this past week, as the stock continues to fall from recently made new all-time highs.

Although there were some considerable declines on Wednesday (-4.5%), Thursday’s trading (-4.7%) was this only session this week with an measurable increase in volume.

On Friday, shares did hold the support offered by the 200-day moving average.

As continuously noted here – “Our 1st SUPPORT remains at the rising 200-day moving average…”

Looking forward to next week, shares are +9.13% above the BUY PRICE, and any considering trading below or a close below the 200 DMA ($19.12) would be the FINAL SELL SIGNAL.

 


 

UPDATE: The Sunday Stock Report Portfolio

All of the stocks featured on our High Ranked Leaders Watch List match up very favorably with the proven guidelines which were developed from a famous 50-year study of the market’s biggest winners. These stocks are of highly-ranked, financially sound companies and have properly formed technical bases. These selections hail from the current leading groups of the market. They are profitable businesses with either a new product or service, new management or are making new highs in share price as institutions and big money managers are accumulating shares. This means that they have the winning characteristics which we are all looking for. These characteristics include such chart patterns as a cup with handle, flat base, double bottom base, etc. History has shown that when such stocks are posted as set ups, they are poised for a buyable breakout.

 

hrlwl111316

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

 


 

SUN 11/13: Constellation Brands Inc. (STZ – NYSE) – PORTFOLIO UPDATE

PROFILE: Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets alcoholic beverages in the United States, Canada, Mexico, New Zealand, and Italy. The company’s brands include Corona Extra beer, Svedka vodka, and Robert Mondavi wine.

stz

Charts courtesy of StockCharts.com

LATEST ANALYSIS 11/13: Although the broader market had a very strong weekly rally, shares of this holding fell sharply -4.5%.

After breaking below the 50-day moving average during the previous week, this stock went on to slice it 200-day moving average this past week, and that was a sell signal.

Next support is at $130.

 


 

SUN 11/13: ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA – Nasdaq) – PORTFOLIO UPDATE

PROFILE: ULTA Salon, Cosmetics & Fragrance, Inc. is the largest beauty retailer in the United States. It operates specialty retail stores, which offer an assortment of branded and private label beauty products.

ulta111316

Charts courtesy of StockCharts.com

LATEST ANALYSIS 11/13: Shares moved +11% higher and up from near support of the 200-day moving average this past week.

The gains however lacked serious volume conviction as the broader market rallied. The stock does remain under resistance of the 50-day moving average.

Our support is at the 200-day moving average, currently at $223.19, and a close below there would be a sell signal.