– 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.

The 2019 rally continued as a week of better-than-expected earnings which showed corporate profits continued higher despite the present global growth headwinds.


QUOTE OF THE DAY:

“I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do.” 

– Leonardo da Vinci


Optimism over what has been so far an “upbeat” earnings season drove stocks higher, allowing investors to look beyond the divisions in Washington and concerns over the slowing world economy.

We also had a series of management conference calls, where company executives expressed optimism for their businesses in the coming year.

Stocks were also boosted by expectations that the Federal Reserve will take a much more dovish stance in 2019 than previously thought, with The Wall Street Journal reporting that Fed officials are close to a decision on whether to end the shrinking of the central bank’s balance sheet early.

However, a deal reached by President Trump and Democrats to at least temporarily reopen the government seemed to have little impact on stocks.

After a string of four solid up weeks, the Jones added just +0.12% this past week. The index has continued to plow through noted areas of resistance.

As of Friday’s close, the blue-chips are now facing their next hurdle which is resistance of a downward trendline and the coinciding 200-day moving average.

Chart courtesy of stockcharts.com

The Nasdaq gained +0.11% this past week, eking out a fifth weekly gain.

Chart courtesy of stockcharts.com

Meanwhile, the S&P 500 actually closed the week down -0.22%, yet remains well above initial support.

Chart courtesy of stockcharts.com

As reported last week, the 3 major indices remain below their 200-day moving averages.

Currently, the market continues in a confirmed uptrend, with only 2 distribution days on the S&P 500 and just one on the Nasdaq.

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Technical SetUps WatchList Each Market Morning

Early each market morning James diligently screens through hundreds of high EPS and RS ranked stocks that have solid fundamentals.

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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This week, Wall Street investors will turn their attention toward Silicon Valley. Four of the five most valuable technology companies in the world — Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Facebook (FB) — are all set to report earnings.

Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases.

I ran my routine stock screens, yet did not add any new stocks to our watch lists.

We now have a total of 21 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 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.