5:00 AM – MORNING MARKET UPDATE & WATCH LIST
The market continued trading aggressively higher for the first full week of 2019. All three of the major averages closed with weekly gains for the third week in a row, as progress on trade talks with China overshadowed a partial government shutdown.
QUOTE OF THE DAY:
“You’ve got to get up every morning with determination if you’re going to go to bed with satisfaction.”
For the week, the Dow booked a weekly gain of +2.4%, the S&P 500 ended up +2.5%, while the Nasdaq produced a weekly return of +3.5%.
The broad-based advance helped to propel the Dow and S&P 500 out of corrective phases as the indexes climbed by at least +10% from their correction low, which signals an emergence from correction, according to Dow Jones Market Data.
Of course the question now is – How long will this new uptrend continue?
Let’s consider this…. as of Friday’s close all there of the major averages have now rallied from their December sell off lows and are now up at respective resistance levels.
These are now the areas to watch for either a turn back from this resistance which could lead to a pullback, or a breakout which could be the start of another leg up.
The Dow Jones Industrials are now near 24,000, which is a 2000 point gain from the sell off lows in December.
Chart courtesy of stockcharts.com
The Nasdaq is now at resistance of its 50-day moving average and a downward trend line, where it may have already started to pause.
Chart courtesy of stockcharts.com
The magic number on the S&P 500 I’m told is 2600. We can see several areas of resistance coming into play for Wall Street’s bellwether.
Chart courtesy of stockcharts.com
Next week, bank earnings from Citigroup (C) and JPMorgan Chase & Co. (JPM), among others, mark the unofficial start of earnings season, which may offer fresh clues about the health of American corporations.
The 2019 rally has thus far held up and gave us of several trading opportunities just by following the TRADING CRITERIA in our daily watch lists.
Over the course of the week, the Portfolio Service had a total of 3 BUYS and 2SHORTS.
The 3 BUYS were DORM (P/L: +3.34%), QNST (P/L: +3.85%), and FIVN(P/L: -0.49%).
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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 morning, I ran my routine stock screens, yet did not find any new stocks to add to our watch lists.
We have a total of 8 stocks which we will be watching for a potential breakout.
SEE ALL MY CURRENT WATCH LISTS HERE: James’ Stock WatchLists
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 email@example.com 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.