5:00 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
The start of the 2019 market was not quiet for long as after just one day of calmer trading, the 2018 volatility resumed with Thursday’s -660 point plunge on the Dow. This was immediately followed by the index closing up over +700 the very next day.
QUOTE OF THE DAY:
“Success is the sum of small efforts, repeated day-in, and day-out.”
– Robert Collier
Stocks surged higher on that Friday with a better-than-expected jobs report for December and dovishly interpreted remarks from the chairman of the Federal Reserve.
After closing up +740 points on Friday’s session, the Dow Jones Industiral Average capped off the week with a net +1.6% gain. This was the 2nd up week for the index after three down weeks in a row. The blue chips clearly broke out and closed above our previously noted resistance of a downward trendline.
Chart courtesy of stockcharts.com
After posting a +4% gain last week, the Nasdaq added another +2.3% this week.
Chart courtesy of stockcharts.com
The S&P 500 gained +1.9% this past week on the heels of last week’s +2.9% advance. Wall street’s bellwether closed the week at our previously noted area of resistance.
Chart courtesy of stockcharts.com
As I wrote last week – “By the book – a stock market rally attempt is underway. A follow-through day could come as soon as this week to confirm the new market rally.”
…and that occurred on Friday as we had an proper follow through day. The market is now officially in a confirmed uptrend.
For traditional BUYS, we are going to have to let our breakouts by our guide.
From our watch list last week of 4 high-ranked stocks, we had 0 breakouts this past week.
This coming week will be the first full week of trading of the new year, and we should expect to see everyone “back to work” with prosperous hopes for 2019.
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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Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases. This weekend, I ran my routine stock screens, yet did not find any new stocks to add to our Technical SetUps WatchList.
As I had previously noted, I expect to see a good number of stocks breaking out from our TrendLines SetUps WatchList as the watch list should grow in number as more stocks set up in their current down trends.
We still have a total of 11 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.