Happy Friday.

The major averages hit new records again on Thursday, but not all the indexes were able to hold onto their gains.

The Dow finished the day at its highest ever closing level.

However, the Nasdaq and the S&P 500 both closed with very slight losses. The distribution count for each is now at 5 and 4, respectively, which is lower than where they were last week.

This morning futures are currently holding steady. European markets are mostly declining in early trading. Most Asian markets ended the day with small gains.

Our GDP report was released at 8:30 AM and showed that the U.S. economy slowed in the fourth quarter and annual growth failed to reach 3% for the 11th straight year.

More importantly…

We had another 3 BreakOut Alerts yesterday. This follows 9 from Wednesday, and 7 from Tuesday.

What a week with 19 breakouts in the past 3 sessions! I’ve been covering, researching and reporting on high-ranked breakouts for over 15 years. This many breakouts from our watch lists in such a short time frame may be a new record.

It’s been a head-spinning few days. Don’t beat yourself up if you didn’t get into every breakout or may have gotten in some that may have not properly confirmed. Just work with what you have, and of course reach out to me any time you have any questions or concerns. I strive to make myself available to all members, especially during market hours.

Of the BreakOut Alerts I issued yesterday, none of those were prudently buyable.

Let’s take a look…

1) TCBI – Broke out first thing yesterday with a gap up on earnings.

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

As noted in the original alert at 10:02 AM and reiterated in the afternoon update – “Is an earnings breakout as the company announced [Wednesday] after the close. It was noted this morning as NOT being buyable and remains as such. We will see how shares hold up in the [Friday] morning.”

It remains on the watch list. We will see if we can get a proper entry today.

2) LFUS – As noted yesterday, the volume did NOT confirm a BUY signal, and shares actually reversed to close with a loss on the session.

3) CLS – This was a pre-earnings breakout. The company announced earnings yesterday after the close. Buying stocks just ahead of an earnings announcement is very risky and not something we do.

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

Shares did have a very positive day yesterday, closing up +1.43% with a +269% increase in volume and at a new multi-year high. Still, we will have to see the reaction the stock has this morning now that its Q4 numbers are out.

CLS remains on the watch list. We will see if we can get a proper entry today.

I ran my routine stock screens this morning, yet did not add any new set ups to any of our watch lists.

All of our watch lists have been updated.

At this point, we have 10 stocks on our Technical SetUps WatchList and another 10 on our TrendLine SetUps WatchList. There continues to be 0 stocks which meet the strict criteria for the High-Ranked Leaders WatchList.

Set ups that I am watching today to confirm BUY signals are:


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 james@jamestaulman.com.