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…