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.




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…




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 – 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.


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.






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




Any questions or concerns, please email me at



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 – 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…




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

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 Inc. (AMZN), will report on Thursday.

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

Major Averages Well Off of Mid-Day Highs – No New BreakOuts

3:15 PM – The major averages are trading well off of their mid-day highs as we approach the final 30-minutes of Tuesday’s session.

The Dow is sitting with modest declines as the Nasdaq is positive with not a down day yet in 2017.

We have no new breakouts today.

Our latest breakout, INCY is adding a bit to yesterday’s solid gains.

Chart courtesy of – Click chart to enlarge.

Previous TrendLine BreakOuts with noteworthy action today are…

Shares of TCB are making some gains today (+1.5%) yet volume is about average in afternoon trading.

Chart courtesy of – Click chart to enlarge.

There are some nice above average volume gains in TSEM to new multi-year highs today.

Chart courtesy of – Click chart to enlarge.

Shares of REGI are at the 200-day moving average. Any trading significantly below there, or a close below there ($9.15), would be the final SELL signal.

Chart courtesy of – Click chart to enlarge.

After some nice price progress yesterday of +1.7%, shares of MPWR are holding up today.

Chart courtesy of – Click chart to enlarge.

NTES closed above the 50-day moving average yesterday, and as noted that was technically significant. Today shares are making continued gains of +2%.

Chart courtesy of – Click chart to enlarge.

Shares of RTEC are holding up today after they had a gap down yesterday as the company received a meaningless downgrade from a brokerage firm.

Chart courtesy of – Click chart to enlarge.

MXL is holding on to the nice gains made yesterday.

Chart courtesy of – Click chart to enlarge.

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.



Any questions or concerns, please email me at



A Quiet Pre-Holiday Week – One New BreakOut Alert

Richard-JamesFor the past seven-weeks the major averages have made an impressive run to new highs.

This week, was rather quiet on Wall Street ahead of the Christmas Holiday.

The biggest “news” may have been that the Dow once again failed to break above the closely watched 20K milestone.

Still, each of the three major indices closed higher with now only four days of trading remaining for 2016.

The blue-chips did gain another +0.46% or +90.40 points, ending at 19,933.81, and logged a seventh-consecutive weekly gain.

This was a feat not seen since late 2014.

dowCharts courtesy of

After a slight pullback last week (-0.13%), the Nasdaq Composite index was back to making gains this week as it netted +25.53 points, or +0.47% and closed at 5426.29.

compqCharts courtesy of

The S&P 500 index closed the week up +5.72 points or +0.25%, to 2263.79.

Barring a selloff in the 4-day week between Christmas and New Year’s, the S&P 500 is looking to close out 2016 about +3% higher than the average original target of strategists polled a year ago.

sp500Charts courtesy of

I really don’t think we could ask for better technical action in the market at this point.

We had a very nice run to new highs and now we have some perfectly-timed sideways trading action as volume is lighter and those gains are digested.

If this ideal action would continue, we would see the moving averages such as the 50-day and 200-day catch up, as individual stocks build new bases to buy off of.

We shall see.

In the meantime, we will watch for any new breakouts with volume as those would be buyable, while we monitor our current positions for any individual weakness.

Markets are closed Monday, then we have the last four trading days of the year before the New Year’s Holiday.

I wish everyone a happy and safe holiday season.


One New BreakOut Alert This Past Week

Cirrus Logic, Inc. (CRUS – Nasdaq) is a fabless semiconductor company which develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets.

This stock was added to the Technical SetUps WatchList on 12/13 as shares had just completely recovered from a single-session pullback (12/1) and were now building a base at new highs and above the 50-day moving average.

On 12/21 coverage was initiated with a positive rating at Susquehanna, and that news had the stock breaking out, yet the volume on the day was below average.

As I noted in the Wednesday afternoon update – “We had another breakout today from the Technical SetUps WatchList as shares of CRUS traded above their TRIGGER PRICE of $59.60. The volume, however, is not confirming a BUY signal.”

crusThis was the only BreakOut we had during this quiet pre-holiday week.

For those who are still interested in possibly buying – any gains while the day’s volume is above average by at least +50%, would have this stock confirming a BUY signal up to the stock’s MAX BUY PRICE which we have set at $62.58.

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James F. Taulman – For more than 8 years James served as Editor-in-Chief of an independently-licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He 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.

James now runs two websites and a portfolio service where he features select stocks which match up very favorably with the guidelines of the winning investing system.

At his long-standing website, he produces a weekly newsletter that includes his High Ranked Leaders Watch List, and ongoing portfolio style coverage on breakouts from that concise list.

His newer site, is where he offers a stock watch list each market morning, emailed out as a Stock WatchList Morning Update. This report contains his hand selected stocks which looked the most poised to break out. There are also real-time “BreakOuts Alerts!” of stocks from that list which trade above his Trigger Price. These are sent via email to those who sign up for this free service.

Most recently James introduced – James Taulman’s Personal Portfolio Service where he gives specific BUY, HOLD or SELL calls on suitable high-ranked market leaders. These selections have solid fundamentals along with bullish technical chart patterns. He also presents stocks for shorting and gives, SHORT and COVER alerts on those as well.

He designed this service to take only what he sees as the most sound stock selections from all of the services which he currently offers. This new service is basically how he uses the information which he has available to him, to trade a personal brokerage account.

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Futures Steady – Last Trading Day Before Christmas

The major averages closed modestly lower yesterday, yet remain just off of recently made all-time highs.

The Dow continues to trade just below the 20k level for the past two weeks, currently sitting at 19,919.

Chart courtesy of – Click chart to enlarge.

This morning, European markets are mixed in early trading.

Asian markets ended the week mostly in negative territory.

U.S. stock futures are holding steady after stocks slid a bit on Thursday.

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.



Any questions or concerns, please email me at