– 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 uptrend continues with all the major averages closing the week at their highest levels since early November.


QUOTE OF THE DAY:

“Lighten up, just enjoy life, smile more, laugh more, and don’t get so worked up about things.” 

– Kenneth Branagh


It was the ninth straight weekly gain for the Dow and the Nasdaq, marking the first time since 1964 that the indexes rose in the first 8 weeks of a calendar year.

The Dow Jones added another +0.57% this past week and is on its longest weekly win streak in more than 2 decades.

The index technically remains in a steady uptrend – breaking above resistance levels – while posting only 1 red price bar early in its ascent.

Chart courtesy of stockcharts.com

The Nasdaq gained +0.74% on the week.

As noted last week – “The tech-laden index still has yet to definitively break above its 200-day moving average.”  This past week the Nasdaq made gains above there early in the week and then closed further above (+0.7%) on Friday, at a new multi-month high.

Chart courtesy of stockcharts.com

The S&P 500 index advanced +0.62% this past week and closed at 2792.67.

As noted here last week – “The next level to watch on the upside remains the round-2800, which is also near some previous highs.” 

The bellwether has been able to just barely break above 2800 three times since the start of the October sell-off, as it never traded as high as 2815. (see chart)

Chart courtesy of stockcharts.com

The fuel behind this current rally-run can be attributed to the softening from the Federal Reserve, who effectively put its interest-rate policy on hold.

This week, investors had continuing hopes for a trade deal between the U.S. and China which bolstered market optimism.

The market remains in a confirmed uptrend with only 1 distribution day on the Nasdaq and just 2 on the S&P 500.

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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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US Cellular (USM) and Wayfair (W) will release earnings before the open.
Shares in Stamps.com (STMP) dropped almost -50% in extended trading after the company announced it was ending its partnership with the U.S. Postal Service.

Also, Berkshire Hathaway (BRKA) is expected to report earnings today. If history is a guide, CEO Warren Buffett will release his annual shareholder letter on Saturday. Buffett’s letter is closely read for its investment advice.

This weekend, I ran my routine stock screens and added 6 stocks to our watch lists.

We still have a total of 18 stocks which we will be watching for a potential 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.