– 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.
5:30 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
[dropcap]A[/dropcap]fter a very strong week on Wall Street last week, this morning stock futures are sharply higher.
Last week both the S&P 500 and the Nasdaq logged their best weekly performance since December 2011 while the Dow Jones Industrials posted their strongest week since November 2016.
QUOTE OF THE DAY:
“Rank does not confer privilege or give power. It imposes responsibility.”
– Peter Drucker
We also had a confirmed follow through on Wednesday after Fed Chair Powell announced that interest rates are “just below” neutral. The Fed has appeared to soften its stance on monetary policy. Investors had been concerned the FMOC would raise rates aggressively in 2019. A rise in interest rates is sure killer of any bull market.
BEIJING, CHINA – NOVEMBER 9: U.S. President Donald Trump and China’s President Xi Jinping arrive at a state dinner at the Great Hall of the People on November 9, 2017 in Beijing, China. Trump is on a 10-day trip to Asia. (Photo by Thomas Peter – Pool/Getty Images)
The market continued to get further excited on Friday after upbeat comments from a U.S. trade official who suggested that a trade deal looks possible during a meeting between Trump and Xi at the G-20 summit in Argentina.
This weekend, it was announced that the leaders agreed to a 90-Day tariffs cease-fire. Each stating they would stop the introduction of new tariffs and step up their trade talks.
The Dow closed with weekly gains of +5.16% while the Nasdaq rose +5.64%, and the S&P 500 jumped +4.85%.
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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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After a follow through on Wednesday, then a solid day on Friday, futures are now currently pointing to a strong opening. Looks like the Dow and the S&P will be bullishly taking out the above noted technical points of resistance of their respective moving averages.
We will let our breakouts continue to be our guide.
If you have been using any of my daily or weekly watch lists, or working more closely with me through one of my other services – you should have picked up several breakouts recently and are now, at the least, partially poised to take advantage of today’s potentially positive action.
I ran my routine stock screens, yet did not find any new stocks to add to our watch list.
I ran my routine stock screens over the weekend, and added 5 new stocks to our watch list. Four of those are TrendLine SetUps.
We now have a total of 10 stocks which we will be watching for the next buyable breakout – see here.
One of those is STOR which traded +0.74% on Friday with a +37% increase in volume and now is -1.22% from its TRIGGER PRICE.
Chart courtesy of stockcharts.com.
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.