After a solid up day in the market yesterday, futures are higher this morning ahead of Wednesday’s open.
We had a record 7 breakouts yesterday, and there is the potential for more today as several stocks from our various watch lists are trading near their TRIGGER PRICE, and judging by the futures, the market may continue yesterday’s march to new highs.
So, we need to get focused and organized to best take advantage, as well as not make any missteps.
Here is an update on the 7 breakouts we had yesterday:
CDK, MCHP, UBNT and BERY – These four stocks traded above their TRIGGER PRICE, yet the day’s volume for each was NOT enough to have any of these breakouts to confirm a BUY signal.
TXN– Was an earnings breakout, with a +69% increase in volume. These types of breakouts carry more risk. The company announced results yesterday after the close. As previously noted, shares could gap up or down this morning. Neither is properly buyable.
EXP – Was an earnings breakout as the company announced that morning. These carry more risk. Shares closed well off of the morning highs. For those who are still interested in buying, any above average volume gains from here would be buyable up to the MAX BUY PRICE of $108.42.
IR – Came very close to confirming, if not confirming, a BUY signal very late yesterday afternoon. As I noted in the afternoon report – “The volume today has picked up this afternoon and this stock should be watched closely for the volume to make its TRIGGER VOLUME of 2,912,250, as that would confirm a BUY signal up to the MAX BUY PRICE of $83.28.” This still holds true today.
All of our watch lists have been updated this morning.
While running my routine stock screens early this morning, I added 4 stocks and removed 2 stocks from our Technical SetUps WatchList.
1) TXN broke out yesterday ahead of earnings which were released after the close.
As noted here yesterday morning – “Although this stock may trigger a BUY signal by default if its shares trade above the TRIGGER PRICE of $75.35 with the required volume, keep in mind that earnings breakouts do carry more risk. So, caution is advised.”
2) MCHP keeps advancing above its TRIGGER PRICE with a lack of volume conviction.
At this point, we have 16 stocks on our Technical SetUps WatchList and another 11 on our TrendLine SetUps WatchList. There are currently 0 stocks which meet the strict criteria for the High-Ranked Leaders WatchList.
Of those, her are the 14 which looked poised to breakout/trigger today including…
IR, HBHC, BERY, UBNT, CDK, EXP, and ORBK which are all already trading above their respective TRIGGER PRICE. Continued gains today in any of these while the stock’s volume is at least on pace to make the TRIGGER VOLUME, would have that candidate buyable up to its MAX BUY PRICE.
We also have FLEX, APH, MRVL, GPI, TREX, MLM, and SMTC all nearing their individual TRIGGER PRICE. Any gains above their TRIGGER PRICE while the stock’s volume is at least on pace to make the TRIGGER VOLUME, would have that particular candidate buyable up to its MAX BUY PRICE.
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.
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