December 3, 2021

SSR 8/26: Benchmarks Post Milestones – 6 BreakOuts, 1 New WatchList Addition

This Week’s Sunday Stock Report – 8/26/18

– 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.

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BreakOuts This Past Week | 5 Stocks on Our WatchList for the Week

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[dropcap]T[/dropcap]here continues to be plenty of “bullish” events to sustain investors optimism for U.S. equities. This past week the market posted several milestones.

For one, we have major benchmarks back at record levels. The S&P 500 booked a second weekly advance (+0.9%) and after 145-days closed at another new all-time high.

The Nasdaq logged a record with its first all-time high since July 25th while it advanced with a solid +1.7% weekly gain.

Small caps continued their participation as the Russell 2000 added +0.4% on the week and also closed at a new all-time high. The index is firming up above the 1700 level and is still beating the large-cap indexes with a +12.3% gain for the year.

Chart courtesy of stockcharts.com.

The Dow Jones industrial average rose +0.52% for the week, closings within -3% of its peak made on Jan. 26th.

Also, this week marked the longest bull market in history by most measures.

Corporate earnings and a strong U.S. economy still appear to carry more weight with investors than political issues such as President Trump’s mounting legal troubles including this week’s increased threat of impeachment.

We have a strengthening GDP which is growing at an annualized clip of near 4%, while the unemployment rate stands at less than 4%.

Actually, trade uncertainty may be the biggest worry as concern over that is at the highest its ever been, based on data going back to 2000. At the same time, monetary-policy uncertainty has been trending lower, and is well below historical averages, while fiscal-policy uncertainty is roughly at its long-term average.

August is usually a more quiet time for stocks, however, 2018 is proving to be somewhat of an anomaly – with one week remaining the Dow has already gained +1.5% for the month, the S&P is up +2.1%, and the Nasdaq +3.6%. At the current pace, stocks are poised to produce their best August returns in four years.

Also of note, at the annual meeting of monetary policy leaders in Jackson Hole, Jerome Powell sounded a dovish tone in terms of how fast the U.S. central bank will raise the cost of money in the near term. On Friday, he affirmed the Federal Reserve’s strategy of gradually normalizing monetary policy, highlighting the strength in the economy and robust corporate results that have helped to support investment appetite for equities.

Against that backdrop, investors have also been calling out a divergence between U.S. stock performance vs. the rest of the world. Year to date, “the U.S. is up $1.897 trillion, as foreign markets are down $1.523 trillion,” wrote Howard Silverblatt, senior analyst at S&P Dow Jones Indices in a Saturday research note.

After having 4 breakouts during the previous week, we had 6 new breakouts this past week (see below).

I ran my regular stock screens and added 2 new stocks to our watch list this week.

We now have a total of stocks which we will be watching for a potential breakout in the coming week – see those below.

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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6 BREAKOUTS FROM LAST WEEK’S WATCH LIST:

From our watch list last week of 9 high-ranked stocks, we had 6 breakouts this past week.

TRADING CRITERIA TABLE  – Technical BreakOuts

SYM LAST ADDED TO WATCH LIST BREAKOUT DATE BREAKOUT PRICE % GAIN/LOSS
EXPO $52.80 8/15/2018 8/23/2018 $52.73 +0.13%
DECK $118.04 8/12/2018 8/23/2018 $122.63 -3.74%
LOPE $119.97 8/15/2018 8/22/2018 $122.29 -1.90%
VEEV $100.64 8/19/2018 8/21/2018 $86.07 +16.93%
LULU $138.76 8/15/2018 8/20/2018 $131.98 +5.14%
CAL $37.40 7/2/2018 8/20/2018 $37.16 +0.65%

 

ANNOTATED CHARTS – Technical BreakOuts

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

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IBD ARTICLES – Coming soon (delayed)

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5 STOCKS ON THE WATCH LIST FOR THE COMING WEEK:

Any trading above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have this set up confirming a BUY signal up to the MAX BUY PRICE.

TRADING CRITERIA TABLE Technical SetUps WatchList

This past week, I added 2 new stock to our weekly watch list. We now have a total of 5 stocks which we will be watching for a potential breakout this week.

SYM LAST ADDED TO WATCH LIST TRIGGER
PRICE
TRIGGER
VOLUME
MAX BUY PRICE % FTP
INTU $216.63 8/24/2018 $219.56 1,980,600 $230.54 -1.33%
KFY $66.41 8/22/2018 $69.08 787,050 $72.53 -3.87%
RMD $108.9 8/12/2018 $110.07 1,007,550 $115.57 -1.06%
QTWO $63.70 8/10/2018 $63.90 545,400 $67.10 -0.31%
CLR $65.50 6/13/2018 $70.01 3,149,550 $73.51 -6.44%

* % FTP = A stock’s price percentage from its TRIGGER PRICE. 

 

ANNOTATED CHARTS – Technical SetUps WatchList

The charts below are for each stock that is currently on our weekly watch list.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

Chart courtesy of stockcharts.com.

NOTE: Any trading above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have this set up confirming a BUY signal up to the MAX BUY PRICE.

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About the Author: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.

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