– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.
7:00 – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
[dropcap]T[/dropcap]he 2019 rally continued for a 6th straight week as the major averages again booked solid gains.
QUOTE OF THE DAY:
“Life’s biggest tragedy is that we get old too soon and wise too late.”
– Benjamin Franklin
Throughout the week, the release of corporate quarterly results continued with three dozen S&P 500 components announcing earnings in just one day this week, the busiest week of earnings season.
On Wednesday we had the Fed energize investors when it struck a surprisingly dovish tone on monetary policy.
Then before the bell on Friday, we had a stronger-than-expected January jobs report.
The other big issue on investor’s minds is trade. Market observers were watching developments between the U.S. and China as officials there attempted to forge the framework toward a resolution of tariff disputes in the final day of this round of negotiations.
Thursday marked the end of the month and we officially went from – “the worst Christmas Eve ever” to “the Dows strongest January since 1989.”
For the month the Dow rose +7.2%.
As we previously noted – ” The index has continued to plow through noted areas of resistance.”
This past week the blue-chips broke through 2 more areas of resistance with a break above a downward trendline and also a close above the 200-day moving average.
Chart courtesy of stockcharts.com
The Nasdaq Composite has also closed higher for six straight weeks as it recovered from its first decline of more than -20% since 2011.
It booked its best January since 2001 with a +9.2% monthly gain.
Chart courtesy of stockcharts.com
The S&P 500 index posted its best January since 1987. For the month, the bellwether climbed +7.9%.
Chart courtesy of stockcharts.com
There were several bullish factors to this past week’s rally including the fact that we had 6 breakouts from last week’s watch list of 12 stocks.
The distribution day count remains low with still only 1 on the S&P 500 and just one on the Nasdaq.
Currently, the market continues in a confirmed uptrend.
Throughout the week, the release of corporate quarterly results continued with three dozen S&P 500 components announcing earnings in just one day this week, the busiest week of earnings season.
On Wednesday we had the Fed energize investors when it struck a surprisingly dovish tone on monetary policy.
Then before the bell on Friday, we had a stronger-than-expected January jobs report.
The other big issue on investor’s minds is trade. Market observers were watching developments between the U.S. and China as officials there attempted to forge the framework toward a resolution of tariff disputes in the final day of this round of negotiations.
Thursday marked the end of the month and we officially went from – “the worst Christmas Eve ever” to “the Dows strongest January since 1989.”
For the month the Dow rose +7.2%.
As we previously noted – ” The index has continued to plow through noted areas of resistance.”
This past week the blue-chips broke through 2 more areas of resistance with a break above a downward trendline and also a close above the 200-day moving average.
Chart courtesy of stockcharts.com
The Nasdaq Composite has also closed higher for six straight weeks as it recovered from its first decline of more than -20% since 2011.
It booked its best January since 2001 with a +9.2% monthly gain.
Chart courtesy of stockcharts.com
The S&P 500 index posted its best January since 1987. For the month, the bellwether climbed +7.9%.
Chart courtesy of stockcharts.com
There were several bullish factors to this past week’s rally including the fact that we had 6 breakouts from last week’s watch list of 12 stocks.
The distribution day count remains low with still only 1 on the S&P 500 and just one on the Nasdaq.
Currently, the market continues in a confirmed uptrend.
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Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases. This week, I ran my routine stock screens, yet did not find any new stocks to add to our weekly watch list. I will continue screening throughout the week and post any additions. If anyone is looking for any specific setups, long or short, please let me know.
Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases. This week, I ran my routine stock screens, yet did not find any new stocks to add to our weekly watch list. I will continue screening throughout the week and post any additions. If anyone is looking for any specific setups, long or short, please let me know.
We still have a total of 18 stocks which we will be watching for a potential breakout. – see here.
Now you can get access all watch lists with updated trading criteria including –TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock here.
Missed any of these morning reports? You can find all previous reports here.
Standard rules apply – any gains above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have any of these set ups confirming a BUY signal up to their MAX BUY PRICE by default.
Keep in mind that when a stock breaks out – becomes potentially buyable – there are other factors to consider.
Volume on the breakout. A stock that is breaking out through resistance, with an increase in volume of +50% above the stock’s average volume (50 DAV), is showing more conviction and more demand. This is not saying – all lower volume breakouts will fail. Actually, we’ve seen many continue higher. If you have found that you did buy a stock that showed lower daily volume or volume under 50%, going forward – simply treat it a regular trade.
Earnings BreakOuts. Many stocks from our watch list will break out during earnings season. Earnings breakouts can be more rewarding, however, these trades carry much more risk then traditional (non-news) breakouts. One needs to also consider – the strength/weakness of the fundamental news that was just released along with the forward-looking guidance the company gave, investors response to the conference call, etc. For anyone who is not familiar with – buying earnings breakouts – I suggest that they sit through a few seasons to study, paper trade, and show some profits, before applying actual capital.
As always, if anyone has any questions – please feel free to email me at james@jamestaulman.com as I would be glad to assist you.
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About the Founder: James F. Taulman – James served as Editor-in-Chief of the first independently licensed website that offered stock reports and services based on the CAN SLIM® investment system. He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy. Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace. Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks. _________________________________________________ Disclaimer: James Taulman is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.