– 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.
8:30 AM – MORNING MARKET UPDATE & WATCH LIST
[dropcap]S[/dropcap]ince breaking to new all-time highs in mid-December the major averages had been trading steadily higher without much volatility nor any signs of weakness.
QUOTE OF THE DAY:
“You are never too old to set another goal or to dream a new dream.”
– C.S. Lewis
This past Monday’s pullback was some-what modest with all 3 indices finding support at their 10-day lines and volume on the session coming in below average.
The markets seemed to calm further Tuesday by posting modest gains to close out the year in a rather tame fashion.
However, when investors returned for the first trading day of the new year, things quickly got dicier. We opened for 2020 with a sharp gap up, produced solid session gains, and had the indexes closing at their session highs and another new record high.
Then Friday’s action became quite the opposite as we started off with a ~1% gap down after news of U.S. forces killing a prominent Iranian terrorist. That had the averages again quickly testing short-term support.
By the close, it became the worst session for the Dow (-234) and the S&P 500 (-23) since Dec. 3rd and the sharpest daily slump for the Nasdaq (-71) since Dec. 2nd, according to Dow Jones Market Data.
On a weekly basis, the Dow Jones lost just -10 points or –0.04% and closed at 28,635.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
This morning, U.S. stock futures point lower again after posting losses on Friday. Amid rising geopolitical uncertainty, markets in Europe fell in early trading, following stocks in Asia.
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BREAKOUT ALERT UPDATE:
There were another 3 “BreakOut Alerts” this past week. We had 1 on Thursday and 2 on Friday. The charts and support levels for all 3 have been updated below.
#3 FTI Consulting, Inc. (NYSE – FCN)
FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide.
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| FCN | $114.43 | 1/2 | $114.52 | 1/3 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | % GAIN/LOSS |
| $120.19 | $112.00 | 50 DMA | $105.36 | -0.08% |
#2 Lockheed Martin Corporation (NYSE – LMT)
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide.
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| LMT | $413.74 | 11/17 | $404.02 | 1/3 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | % GAIN/LOSS |
| $420.06 | $400.00 | 50 DMA | $371.70 | +2.41% |
#3 TJX Companies Inc (NYSE – TJX)
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International.
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| TJX | $61.24 | 12/22 | $61.60 | 1/2 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | % GAIN/LOSS |
| $64.68 | 10 DMA | 50 DMA | $56.67 | -0.58% |
NOTE: These stocks were first featured in my “Stock WatchList: Morning Update” before they broke out. You can now start receiving my “Stock WatchList: Morning Update” each market morning through the BuyingBreakOuts website for only $9 a month or just $97 for an entire year here.
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WATCHLIST UPDATE:
No matter the market, I always have a current watch list ready. There are now 11 stocks that we will be watching for a traditional break out to new highs.
Members can access all watch lists with updated trading criteria including – TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock 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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