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…

All 9 Stocks Which Properly Confirmed a BUY Signal Last Week

As I preach – continually monitor each of your holdings on a case-by-case basis and grade each one individually, sorting strength/resilience from weakness/violations.

Here is another detailed update to help further with that.

SHOWING WEAKNESS:

TXN – Sold off sharply on volume for 3 straight sessions. This bearish action has had a negative effect on the stock’s Accumulation/Distribution Rank which has fallen.

Shares closed yesterday just above our 1st SUPPORT of $75, with further support at the 50 DMA ($74.03). A close below there would be a clear SELL signal.

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

ORBK – Two days with above average volume declines have shares fairly well off of the new highs made on Friday. The stock is still above our 1st SUPPORT which is at $33.90. However, any continued declines, especially with volume would be a growing concern.

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

EXP – Four days in a row of declines with the first 3 coupled with an increase in volume. The fact that yesterday’s volume was below average is a bit encouraging.

Shares remain above our (adjusted) 1st SUPPORT of the previous highs at $102.00, and a break below there would be a concern.

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

MLM – Shares closed considerably lower on Monday (-1.9%), yet the volume was only about average. That changed yesterday as the stock sold off an additional -2.4% with a +76% increase in volume as the stock broke below our 1st SUPPORT which we set at $232.31.

Any trading considerably below our 2nd SUPPORT which is the 50 DMA ($225.11) or a close below there would be a serious concern. We have some further FINAL SUPPORT at $220.00.

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

FLEX – After some solid gains on Friday of +4.6% with a +317% increase in volume, shares may have pulled back only slightly during the past two sessions, yet volume has been above average.

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

 

For the 5 above – we need to see some volume-backed gains to negate the recent weakness.

SHOWING RESILIENCE:

These 4 below have pulled back, yet volume on the retracement has been lighter.

IR – The stock has been holding up in the face of the market’s declines.

However, the company is set to post quarterly results this morning, so investors who have decided to HOLD through the announcement, should be prepared for some volatility.

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

ASGN – After a lighter volume pullback to our noted 1st SUPPORT of the 50 DMA ($43.87) shares shot higher yesterday with a +47% volume increase. This is some good technical action, and further gains should be expected, although of course not guaranteed.

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

MRVL – Continues drifting lower as volume remains well below the normal rate. This type of action is not a concern, especially considering the recent environment.

Shares have continually traded above our 1st SUPPORT which is $14.50.

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

AGX – After some solid gains (+5.4%) with an increase in volume (+48%) on last Wednesday, which confirmed our BUY signal, shares have pulled back, yet volume has been alarmingly below average.

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

As far as new BUYS…

We had DZP confirm a default BUY signal yesterday as the stock’s volume finally made the TRIGGER VOLUME.

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

The stock first broke out on Monday afternoon.

As I noted here Tuesday morning – “Of those lucky 13 set-ups, DPZ actually broke out yesterday afternoon.

At 2:24 PM [Monday] I had my assistant, Cess, email a BreakOut Alert to all members.

Volume at the time was noted as NOT on pace to have the stock confirm a BUY signal. By session’s end, the volume came in with a +28% increase; shy of the minimum +50% increase which we require.

I will continue to monitor this selection today [Tuesday] as shares are already trading above the stock’s TRIGGER PRICE of $172.72. Any gains from here with volume that is at the least on pace to be +50% above the normal rate would have this leader confirming a default BUY signal up to the MAX BUY PRICE of $181.36.”

That happened Tuesday afternoon and this stock confirmed a BUY signal.

This morning, I ran my routine stock screens, yet I did not add any news stocks to any of our watch lists. See here.

All 3 of our watch lists have been updated.

At this point, we have 5 stocks on our Technical SetUps WatchList and another 7 on our TrendLine SetUps WatchList. There continues to be 0 stocks which meet the strict criteria for the High-Ranked Leaders WatchList.

Of those 12 set-ups, we have TMK reporting earnings today after the close. Buying today on any breakout would be risky.

We are still watching GHL, which was an earnings breakout on Friday, to see if it will confirm a BUY signal.

Also, there is…

AER – Shares are very near their TRIGGER PRICE.

ENV – Some nice above average volume gains yesterday with an increase volume has shares looking poised to breakout as soon as this morning.

TREE – The set up is basically at its TRIGGER PRICE, any gains from here with volume on pace to make the stock’s TRIGGER VOLUME would have this selection confirming a BUY signal up to the MAX BUY PRICE.

Again, we shall see, and simply take what the market gives us.

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.