This Week’s Sunday Stock Report – 9/9/18
– 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.
1 BreakOut This Past Week | 5 Stocks on Our WatchList for the Week
After a run to new highs for the major averages, each pulled back to support this past week as a rout in the technology and internet sector weighed on the market for most of the Labor Day-abbreviated week.
By Friday, the technology sector fell by -2.9%. Among the major decliners, Microsoft Corp. MSFT, logged a weekly drop of -3.7%, while Google-parent Alphabet Inc. represented by GOOGL and GOOG skidded -4.4%. Facebook Inc. FB was among the biggest losers, tumbling -7.2%.
The negative action had it biggest impact on the Nasdaq as it lost -2.6% overall, and registered its worst week in more than five months. However, the tech-laden index continued trading thus far in its uptrend and above support of its 50-day moving average (7826). (see chart)
Chart courtesy of stockcharts.com.
The S&P 500 closed down -1% on the week, the biggest weekly decline in two months, but it still remains roughly within -1% from the record set on Aug. 31st. The benchmark maintained its breakout point of 2,873 which I noted last week as new support.
The Russell 2000 lost -1.5% and remained above coinciding support offered by the previous summer highs of 1,700, and its 50-day moving average, currently at 1,693.
The Dow Jones, which was the only index of the four not to set a new record high recently, and is less affected by tech names, lost the least as it edged down just -0.2% to first support (25,888) early Friday, before closing the session higher.
Also of note, on Friday the U.S. Labor Department reported that there were 201,000 jobs created in August while the average wage rose by 10 cents to $27.16 an hour.
After having 2 breakouts during the previous week (RMD and INTU), we had 1 new breakout this past week which occurred on Friday. (see below)
I ran my regular stock screens and added 1 new stock to our watch list this week.
We now have a total of 5 stocks which we will be watching for a potential breakout next week. (see below)