– 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.


5:00 – MORNING MARKET UPDATE & WATCH LIST

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

After a solid up week during the previous week, the major averages clearly struggled this past week and were certainly volatile.


QUOTE OF THE DAY:

“There is nothing like a dream to create the future.” 

Victor Hugo


Coming off the heels of a strong close the previous Friday, the market looked poised to continue the advance Monday, yet the day’s gains became modest and somewhat disappointing.

By Tuesday afternoon, we were already looking at a negative reversal on 2 of the 3 major averages, followed by continued declines on Wednesday.

We got a brief boost on Thursday as the Federal Reserve’s March meeting showed the central bank had trimmed its projections for interest rates this year from two to none.

Those gains were short-lived as all three major indexes fell sharply into negative territory on Friday after a reliable recession indicator from the bond market turned red. The yield on the 10-year Treasury note fell below the yield on the 3-month T-bill.

Stocks closed that day – their worst day in over 2 ½ months  – with volume on the NYSE and Nasdaq was higher than Thursday’s levels, marking another distribution day.

For the week, the Dow Jones Industrials fell -1.3%.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The Nasdaq posted its second-worst point drop in 2019, closing down -196 on Friday’s session and-0.06% on the week, well off of the mid-week highs.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The S&P 500 lost -0.8% this past week, closing below the previous highs.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The distribution day count as I understand stands at 5 on Nasdaq, and 7 on S&P 500. The uptrend is officially – “Under Pressure”.

The indices do remain above their respective 50 and 200 day moving averages, and those will become key areas to watch with any further technical deterioration.

As I always say – let your breakouts be your guide, and we had 5  breakouts from last week’s watch list, all have basically negatively reversed (several on their breakout day) and closed off of their breakout highs.

Four of the five are under their respective TRIGGER PRICE, with the only one above (WING) but by only +0.06%.

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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 week, I ran my routine stock screens and added 4 new stocks to our weekly watch list.

We currently have a total of 27 stocks which we will be watching for a breakout. (see link below) However, let’s keep in mind that with the broader market’s current condition – now is not the best time to be buying new breakouts. Now is the time to focus your attention on previous breakouts which are of course your current holdings. Breaks of support in individual issues are sell signals. – 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.