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…

Of those 19 breakouts, not all of those of course were properly buyable under the guidelines. In order for a stock from a watch list to confirm a BUY signal, it must be trading between its TRIGGER PRICE and its MAX BUY PRICE (5% window) while the volume is at least on pace to come in with a +50% increase by the end of the session.

Of those 19 breakouts, 9 properly confirmed BUY signals.

As I mentioned last week – don’t beat yourself up if you didn’t get into every breakout which confirmed, or may have gotten in some that may have not properly confirmed.

As of Monday morning this is where your focus needs to be – on your current holdings, especially any of your buys from last week. Watch for any of those stocks which may be pulling back with volume. Mind the 1st and 2nd SUPPORT levels which I have included in the table below.

All 9 Stocks Which Properly Confirmed a BUY Signal Last Week

Let’s take a look at the charts…

TXN – Was an earnings breakout. Those can be more rewarding, yet as noted – carry more risk. Shares made several days of above average volume gains, however, Friday’s declines are a bit of a concern. Needs to be closely watched this morning.

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

MRVL – Nice buyable gap open on Wednesday with a +183% increase in volume. Shares are thus far holding onto those gains, and Friday’s action was very tame.

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

AGX – Did pull back rather slightly after breaking out on Wednesday, yet volume was below average. Ranks remain nearly as high as they can be as the stock is NOT extended from support.

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

ORBK – Shares continued to climb since breaking out on Wednesday. Friday’s gains of +2.3% were rather impressive with a +47% increase in volume as the broader market was relatively quiet.

The stock closed at a new highs not seen since mid-2001.

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

EXP – Was an earnings breakout which gave us an entry the following day after reporting as shares continued higher with the required volume.

However, Thursday’s and Friday’s pullback is a concern, and this stock needs to be watched closely this morning for any continued deterioration.

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

MLM – Nice buyable gap open on Wednesday as shares traded above the TRIGGER PRICE with the required volume. On Thursday and Friday the stock posted some slight declines on lighter volume.

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

FLEX – Was a pre-earnings breakout that gave an entry just before the solid gains it made on Friday of +4.6% with a +317% increase in volume.

Shares closed the week at new highs not seen since 2004.

The stock is extended from support, so any above average volume declines would be the first thing to watch out for.

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

IR – Sitting tight since confirming a BUY signal. However, the company is scheduled to report earnings this week. That will make this a tough hold before the numbers are released Wednesday before the open.

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

ASGN – Confirmed a BUY signal on Tuesday then inched higher for the next several days until Friday when shares sold off -4% with a +73% increase in volume. They did close just above our 1st SUPPORT of the 50-day moving average.

A break considerably below there ($43.70), or a close below there would be a SELL signal.

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

I ran my routine stock screens this morning, and I added 1 new stock to the Technical SetUps WatchList. See here.

I removed CLS, JBLU and IDTI from our watch lists.

All of our watch lists have been updated.

At this point, we have 6 stocks on our Technical SetUps WatchList and another 11 on our TrendLine SetUps WatchList. There continues to be 0 stocks which meet the strict criteria for the High-Ranked Leaders WatchList.

GHL announced earning and shot up above our TRIGGER PRICE very briefly on Friday before pulling back. We will see if we can get a less-risk entry today.

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

Please see the link to the watch list tables below for each stock’s specific trading criteria such as the TRIGGER PRICE, TRIGGER VOLUME, MAX BUY PRICE, MAX STOP LOSS GUIDE.

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

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