This Week’s Sunday Stock Report – 1/13/18

– 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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2 BreakOuts This Past Week | 3 Stocks on Our WatchList for the Week

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The market continued trading aggressively higher for the first full week of 2019. All three of the major averages closed with weekly gains for the third week in a row, as progress on trade talks with China overshadowed a partial government shutdown.

For the week, the Dow booked a weekly gain of +2.4%, the S&P 500 ended up +2.5%, while the Nasdaq produced a weekly return of +3.5%.

The broad-based advance helped to propel the Dow and S&P 500 out of corrective phases as the indexes climbed by at least +10% from their correction low, which signals an emergence from correction, according to Dow Jones Market Data.

In the previous week’s Sunday Stock Report (12/30) I wrote – “By the book – a stock market rally attempt is underway. A follow-through day could come as soon as this week to confirm the new market rally.”

…and that occurred on the following Friday (1/4) as the market advanced with volume.

In the last Sunday Stock report (1/6), I pointed out that the market is now officially in a confirmed uptrend, and – “we are going to have to let our breakouts by our guide.”

Monday morning, the market opened the first full trading week of the year and continued to make gains. The day proved to be a solid with the major averages following up on Friday’s advance and we had a total of 3 breakouts from two of our watch lists which contained a total of just 12 stocks. As we have seen, time-and-time again – stocks breaking out in numbers is always a key sign of a new rally-run.

Of course the question now is  – How long will this new uptrend continue?

Let’s consider this…. as of Friday’s close all there of the major averages have now rallied from their December sell off lows and are now up at respective resistance levels.

These are now the areas to watch for either a turn back from this resistance which could lead to a pullback, or a breakout which could be the start of another leg up.

The Dow Jones Industrials are now near 24,000, which is a 2000 point gain from the sell off lows in December.

Chart courtesy of stockcharts.com

The Nasdaq is now at resistance of its 50-day moving average and a downward trend line, where it may have already started to pause.

Chart courtesy of stockcharts.com

The magic number on the S&P 500 I’m told is 2600. We can see several areas of resistance coming into play for Wall Street’s bellwether.

Chart courtesy of stockcharts.com

Next week, bank earnings from Citigroup (C) and JPMorgan Chase & Co.  (JPM), among others, mark the unofficial start of earnings season, which may offer fresh clues about the health of American corporations.

The 2019 rally has thus far held up and gave us of several trading opportunities just by following the TRADING CRITERIA in our daily watch lists.

Over the course of the week, the Portfolio Service had a total of 3 BUYS and 2 SHORTS.

The 3 BUYS were DORM (P/L: +3.34%), QNST (P/L: +3.85%), and FIVN (P/L: -0.49%).

The Stock WatchList Morning Update had a total of 2 stocks breakout for 2019.

Those were CIEN (P/L: +4.35%) and also DORM (P/L: +3.34%).

Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases. This weekend, I ran my routine stock screens, yet did not find any new stocks to add to our Technical SetUps WatchList.

We currently have a total of stocks which we will be watching for a potential breakout.

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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BREAK OUT UPDATE: 

Questions? – Click here.

In last week’s newsletter, I posted a link below to a page which contained all my watch lists, including the TrendLine SetUps WatchList (this watch list is available through my Personal Portfolio Service).

If you followed along and used those watch lists last week you would have a total of 4 breakouts and 2 stocks which triggered SHORT signals.

Here is a update on those breakouts/shorts from all my watch lists so far for 2019.

…SEE ALL 2019 BREAKOUT & SHORTS HERE

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YOU CAN REQUEST A COMPLIMENTARY COPY OF THIS WEEK’S COMPLETE SUNDAY STOCK REPORT AND WATCH LIST HERE