– 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.


NOTE: Today’s watch list can be found here.

U.S. stocks closed mostly lower on Friday with bulls failing to defend early gains as weak housing data overshadowed solid corporate earnings.

After a few of days of recovering from the previous week’s plunge, the market again turned bearish in the later half of the week as investors got defensive.


“The most valuable commodity I know of  is information.”
– Gordon Gekko

Last week, the Dow Jones actually gained +0.4% as the S&P 500 rose fractionally, successfully snapping a three-week retreat while the Nasdaq shed -0.6% to extend losses into a third week.

The S&P 500 and Nasdaq Composite whipsawed at the 200-day moving average — S&P 2,768, and Nasdaq 7,517,respectively — areas that remain bull-bear inflection points.

In individual stock analysis, I regularly talk about and use the 50- and 200-day moving averages as areas of support. The 50-day moving average is very often used as our 2nd SUPPORT level for any breakouts.


Now You Can Start Receiving James’ –
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.

Normally $19.95 a month, now just $9 a month through James’ BuyingBreakOuts.com website.



In the charts below we can see the same moving averages come into play for the major indexes as well.


Chart courtesy of stockcharts.com.



Chart courtesy of stockcharts.com.


Chart courtesy of stockcharts.com.

After the markets pulled back sharply the previous week,  I assembled a watch list on Sunday of 33 stocks which pulled back, yet remained above logical areas of chart support.

I noted that these stocks could start to move higher especially if the market could continue to advance from Friday’s bullish reversal.

A majority of those 33 stocks followed the direction of the broader market this past week. Each posted an initial gain sometime during the first half of the week, yet many pulled back along with the indexes before week’s end. – see complete update here.

This morning, Dow futures are up +166 as it looks like the recent volatility will continued at least for today.

European markets opened with gains following a positive session in Asia.

China’s battered stock market had its best day in more than two and and a half years on Monday.

The Shanghai Composite index surged over +4% after senior government officials pledged new support measures for China’s struggling economy and financial markets.

Halliburton (HAL), Hasbro (HAS), Kimberly-Clark (KMB) and Philips (PHG) will release earnings before the open. Sallie Mae (SLM) and TD Ameritrade (AMTD) will follow after the close.

The US Census Bureau will release data on new home sales for September at 10 a.m. ET.

As I have have always preached – no matter the market you should be continually running stock screens and maintaining a watch list of high-ranked leaders which are setting up in bullish technical bases.

I ran my regular stock screens and added 4 new stocks to our watch list.

We now have stocks which we will be watching for the next buyable breakout – see here.

One stock in particular is DG which just was just added this weekend as it shares have recently reclaimed their 50-day moving average, and are now nearing the new TRIGGER PRICE.


Chart courtesy of stockcharts.com.

Now 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.


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.