– 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.
[dropcap]A[/dropcap]fter suffering its worst week of 2019 last week, the market came roaring back this past week.
QUOTE OF THE DAY:
“Who looks outside, dreams; who looks inside, awakes.”
– Carl Jung
Although the troubles of Boeing (BA) weighed heavily on the Dow, the Nasdaq and the S&P 500 closed at 5-month highs. Investors dismissed a batch of data that was less-than-stellar and instead focused on progress with the China trade talks. The latest moves by Chinese authorities were taken as an optimistic sign that a U.S.-China trade deal might be getting closer.
Thanks to this spectacular post-Christmas rally, the benchmarks are now only a few percentage points from their all-time highs.
Major global markets are enjoying a booklet in the first three months of 2019, underpinned at least in part by central banks of developed countries that have expressed reluctance to unwind easy-money monetary policies that have become a feature of global economies in the aftermath of the 2008-2009 financial crisis.
The technical picture and the market internals improved significantly this past week, following two weeks of deterioration.
For the week, the Dow rose +1.6%, making its best weekly gain since Feb. 15th.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The Nasdaq rallied +3.8%, its strongest week since Dec. 28th. The tech-centric index broke above resistance of some previous highs which it was turned back from the week prior.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The S&P 500 gained +2.9% for the week. Its biggest weekly gain since Nov. 30th. The bellwether had just nearly cleared resistance of its previous highs.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
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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.
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I ran my routine stock screens over the weekend and added 3 more stocks to our watch lists.
We now have a total of 23 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.