– 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.
6:00 AM – MORNING MARKET UPDATE & WATCH LIST
[dropcap]I[/dropcap]t was a very volatile week for the major averages as investors were focused on the uncertainty and economical factors of the U.S vs. China trade war.
QUOTE OF THE DAY:
“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin
It all started on Monday when the Dow Jones lost well over -700 points and fell to its 200-day moving average, marking a new worst day of the year for the key indexes.
After breaking below 27,000 the previous week, the Dow violated another level of support this past week as it traded below its 50-day moving average for the entire week.
The index did find the support of its 200-day moving average – shown in a positive reversal on Wednesday.
The blue-chips ended the week well off of Monday’s low, yet still down -197 points or -0.75% on the week, closing at 26,287, fairly well below (-1%) its 50-day moving average of 26,549.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
There is currently no running distribution day count as the market is officially in a correction.
However, with Wednesday’s bullish positive reversal we are now in the midst of another rally attempt. Hence, we are looking for a Follow-Trough Day.
Starting today, we will start watching for a session where one of the major averages closes with a strong gain on volume greater than the previous day, as that action will confirm a new uptrend.
This is also a point in the market’s cycle where I focus more closely on any individual breakouts; such as how many stocks are breaking out.
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BREAKOUT UPDATE:
We did have 3 breakouts this past week. All were, however, earnings breakouts – meaning they broke out above their TRIGGER PRICE as each announced earnings. I rather see stocks break out on non-news, and not sure how much these breakouts help determine if the current rally attempt has any legs.
Of continuous note, earnings breakouts do carry much more risk, yet can be more rewarding. We have had 5 breakouts so far this month (all on earnings). All 5 closed Friday with gains ranging from +2.7% to as much as +6.8%.
#5: Career Education Corp. (NASDAQ – CECO)
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| CECO | $21.89 | 7/16/19 | $20.49 | 8/8/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | MAX BUY PRICE | % GAIN/ LOSS |
| $20.00 | 50 DMA | $18.85 | $21.51 | +6.83% |
#4: Servicemaster Global Holdings, Inc. (NYSE – SERV)
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| SERV | $56.97 | 7/18/19 | $55.46 | 8/6/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | MAX BUY PRICE | % GAIN/ LOSS |
| $55.00 | 50 DMA | $51.02 | $58.23 | +2.72% |
#3: Tyson Foods, Inc. (NYSE – TSN)
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| TSN | $88.37 | 7/7/19 | $84.40 | 8/5/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | MAX BUY PRICE | % GAIN/ LOSS |
| 50 DMA | $80.00 | $77.65 | $88.62 | +4.70% |
#2: TopBuild Corp. (NYSE – BLD)
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
| BLD | $89.92 | 8/2/19 | 87.06 | 8/2/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | MAX BUY PRICE | % GAIN/ LOSS |
| $83.00 | 50 DMA | $80.10 | $91.41 | +3.29% |
#1: NeoGenomics, Inc. (NASDAQ – NEO)
| SYM | LAST | ADDED TO WATCH LIST | BREAKOUT PRICE |
BREAK OUT DATE |
| NEO | $25.78 | 7/18/19 | $24.94 | 8/1/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | MAX BUY PRICE | % GAIN/ LOSS |
| $25.00 | 50 DMA | $22.94 | $26.19 | +3.37% |
All of these stocks were on my Technical SetUps WatchList at the BuyingBreakOuts website. Recieve the latest watch list each market morning for only $9 a month here.
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WATCHLIST UPDATE:
I continue to run stock screens on a daily basis searching for high-ranked leaders, with solid fundamentals that are building bullish technical bases. This week I added 5 new stocks to the weekly watchlist.
There are now 10 stocks that will be watching for a traditional break out to new highs this coming week.
You can now start receiving my Technical SetUps WatchList each market morning through the BuyingBreakOuts website for only $9 a month here.
Current Personal Portfolio Members can access all watch lists with updated trading criteria including – TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock here.
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James’ Flagship Weekly Newsletter.
Now You Can Request a
Complimentary Copy of…
The Sunday Stock Report –
[dropcap]J[/dropcap]ames’ long-running weekly newsletter is completely focused on only highly-ranked stocks which match up very favorably with the proven and winning guidelines.
It features only about 6 – 12 stocks on average in a weekly watch list.
We’ve found that this watch list is ideal for short-term 0r intermediate-term traders, as well as longer-term investors.
Each stock has both strong fundamentals for potential longer-term growth and the solid technical characteristics which may be more appealing to shorter-term traders who like to buy breakouts and sell a few days later with good profits.
NOTE: On SUNDAY THERE WERE A TOTAL OF 10 STOCKS on the watch list in the current issue. As of Wednesday morning, there are now 6 stocks as 4 have already broken out this week.
REQUEST YOUR COMPLIMENTARY COPY HERE
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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.
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