– 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.
8:00 AM – MORNING MARKET UPDATE & WATCH LIST
[dropcap]T[/dropcap]he current stock market rally continued this past week – albeit without our growth stocks – as Chinese-American trade tensions eased and central banks supported risk-taking with economic stimulus measures.
QUOTE OF THE DAY:
“Unfortunately, it is human nature for us to only learn and grow from a place of emptiness. It’s hard to learn when we are winning and on top of the world.”
– Yehuda Berg
Although the market continued with its current sprint from the now infamous 8/23 low, there was a heavier rotation out of leading growth stocks and into beaten-down value stocks. This, of course, had an adverse effect on our recent breakouts, as well as the stocks on our watch lists.
Meanwhile, both the Dow and the S&P closed the week less than a percentage point away from their all-time highs set in July.
The Dow Jones Industrials added another +422 points or +1.58% this past week. The index has closed up 11 out of the past 12 trading sessions, with the last 8 being straight green.
The blue-chips have now advanced for 3-consecutive weeks, for a total of a whopping 1,591 points.
The Dow closed the week at 27,219, just -179 points from its all-time high of 27,398.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The current rally did shed some distribution days this past week. We went from 5 on the Nasdaq, down to just 2. On the S&P 500 went from 3 last week, to now just 1.
The market remains officially in a “confirmed uptrend”. Of course, the obvious event to watch for next week is if the major averages will punch through to new highs. It’s been a straight run up from the aforementioned Aug 23rd lows.
On Wednesday, the Federal Reserve will deliver its monetary policy statement, with further rate cuts widely expected of 0.25%.
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BREAK OUT UPDATE:
#1 IHS Markit Ltd. (INFO – NYSE)
Markit Ltd. was a global financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing. The company provides independent data, trade processing of derivatives, foreign exchange and loans, customized technology platforms and managed services.
9/15 UPDATE: This breakout actually traded higher on Monday morning, before selling off in the afternoon. Shares held right at our previously noted 1st SUPPORT ($66) on Tuesday with the low being $66.01.
At that point, the 50-day moving average started to come into play and as I have explained previously – that can draw the price a bit lower – which happened on Wednesday.
| SYM | LAST | ADDED TO WATCH LIST | BREAKOUT PRICE |
BREAKOUT DATE |
| INFO | $67.86 | 8/10/19 | $66.17 | 9/3/19 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| MAX BUY PRICE | 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | % GAIN/LOSS |
| $69.48 | was: $66.00 now: 50 DMA |
was: 50 DMA now: $62.00 |
$60.88 | +2.55% |
The stock did hold well above what was our 2nd SUPPORT of the 50 DMA.
Thursday’s gains were bullish as shares advanced better than +3% with a +65% increase in volume, putting the stock back near the previous Friday’s new highs. The volume-backed gains continued the following day and that had us end the week with a +2.5% position gain.
All of the ranks for INFO remain very high and shares are well above the 50-day moving average with little resistance in the way of further gains.
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WATCHLIST UPDATE:
We should always have a current watch list ready. This weekend, while reviewing well over 220 charts, I added 2 new stocks to our watch lists.
There are now 17 stocks that we will be watching for a traditional break out to new highs this coming week.
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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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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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.