– 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.
4:30 PM – BREAK OUT UPDATE
[dropcap]W[/dropcap]ith this week’s rotation out of leading growth stocks, we got stuck playing some defense. At least we’re able to reaffirm some of our basic trading disciplines. Guidelines which we’ve presented for nearly 20 years – such as the importance of our 1st and 2nd SUPPORT levels, along with the basic 50-day moving averages, daily price/volume action, chart trendlines, and our MAX STOP LOSS GUIDE.
Here is one example using one of our current breakouts:
IHS Markit Ltd. (INFO – NYSE)
Markit Ltd. was a global financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing. The company provides independent data, trade processing of derivatives, foreign exchange and loans, customized technology platforms and managed services.
9/15 UPDATE: This recent breakout actually traded higher on Monday morning, before selling off in the afternoon. Shares held right at our previously noted 1st SUPPORT ($66) on Tuesday with the low being $66.01.
At that point, the 50-day moving average started to come into play and as I have explained previously – that can draw the price a bit lower – which happened on Wednesday.
| SYM | LAST | ADDED TO WATCH LIST | BREAKOUT PRICE |
BREAKOUT DATE |
| INFO | $67.86 | 8/10/19 | $66.17 | 9/3/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| MAX BUY PRICE | 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | % GAIN/LOSS |
| $69.48 | was: $66.00 now: 50 DMA |
was: 50 DMA now: $62.00 |
$60.88 | +2.55% |
The stock did hold well above what was our 2nd SUPPORT of the 50 DMA.
Thursday’s gains were bullish as shares advanced better than +3% with a +65% increase in volume, putting the stock back near the previous Friday’s new highs. The volume-backed gains continued the following day and that had us end the week with a +2.5% position gain.
All of the ranks for INFO remain very high and shares are well above the 50-day moving average with little resistance in the way of further gains.
In this week’s Sunday Stock Report, I take a closer look at how the principles shown above should have been applied during the past week’s shakeup.
You can now receive this week’s Sunday Stock Report, and also get my watchlist for the week, when you request your complimentary copy here.
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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.
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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.