8:30 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
[dropcap]A[/dropcap]fter a solid close yesterday, the Dow is set to rise more than 100 points at today’s open. S&P 500 and Nasdaq futures are also both modestly higher.
QUOTE OF THE DAY:
“Don’t let the fear of losing be greater than the excitement of winning.”
– Robert Kiyosaki
European markets rose by more than +1.5% Friday, while stocks in Asia eked out some smaller gains.
Yesterday, we seen the S&P 500 defended at the 2400 level and that is a bullish sign after Wednesday’s rally.
As far as this morning, and how the market has changed over the past few sessions – We had a massive rebound on Wednesday and then Thursday a test of 2400 support (S&P 500) then an 800 point rally on the Dow into yesterday’s close.
This morning, Dow futures are up +100 points.
If conditions continue to grow more bullish or at least stabilize, below are several stocks which I found while running my daily stock screens that look like they could move higher in a cooperative environment.
These stocks held up well during the market’s selloff, and currently have other bullish technical characteristics, along with solid ranks and good underlying fundamentals.
Any continued bullish action, such as gains with volume would be a general BUY signal for nimble traders. These stocks are not like our traditional breakouts, each has points of overhead resistance that need to be watch.
STOR – Shares are under their 50-day moving average, yet have held up during the recent market selloff.
NOW – What is most appealing on the technical side are the two last sessions with above average volume gains.
DORM – Solid gains the past two sessions with a close at the session highs.
DECK – Shot above its 50-day moving average yesterday, is now only -5% from new highs.
Now You Can Start Receiving James’ –
Technical SetUps WatchList Each Market Morning
He is looking for those select few which are setting up in sound technical bases and which looked poised to breakout that day.
Each stock is listed with specific trading criteria such as a TRIGGER PRICE, TRIGGER VOLUME and MAX BUY PRICE.
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On Wednesday morning, I noted here that ABT made somewhat of a soft landing into support on Monday, and if we can get any type of relief rally sometime soon, shares of ABT could likely trade higher.
For those who picked up this call – shares did trade higher the past two sessions, however, volume has only been about average on the move up. The stock did manage to close yesterday just above the 50 DMA, yet that does not ease the stock’s technical concerns completely.
Going forward, we need to see some immediate gains with volume in this section, or strongly considering taking the (now) quick +6% to +7% gains.
I ran my routine stock screens this morning, yet did not add any new stocks to our watch list.
With all the recent volatility, there are just not many quality stocks setting up in bullish consolidation patterns.
We now have a total of 2 stocks which we will be watching for the next buyable 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 firstname.lastname@example.org as I would be glad to assist you.
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.