This Week’s Sunday Stock Report – 2/3/18
– 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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6 BreakOuts This Past Week | 7 Stocks on Our WatchList for the Week
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T
he 2019 rally continued for a 6th straight week as the major averages again booked solid gains.
Throughout the week, the release of corporate quarterly results continued with three dozen S&P 500 components announcing earnings in just one day this week, the busiest week of earnings season.
On Wednesday we had the Fed energize investors when it struck a surprisingly dovish tone on monetary policy.
Then before the bell on Friday, we had a stronger-than-expected January jobs report.
The other big issue on investor’s minds is trade. Market observers were watching developments between the U.S. and China as officials there attempted to forge the framework toward a resolution of tariff disputes in the final day of this round of negotiations.
Thursday marked the end of the month and we officially went from – “the worst Christmas Eve ever” to “the Dows strongest January since 1989.”
For the month the Dow rose +7.2%.
As we previously noted – ” The index has continued to plow through noted areas of resistance.”
This past week the blue-chips broke through 2 more areas of resistance with a break above a downward trendline and also a close above the 200-day moving average.
Chart courtesy of stockcharts.com
The Nasdaq Composite has also closed higher for six straight weeks as it recovered from its first decline of more than -20% since 2011.
It booked its best January since 2001 with a +9.2% monthly gain.
Chart courtesy of stockcharts.com
The S&P 500 index posted its best January since 1987. For the month, the bellwether climbed +7.9%.
Chart courtesy of stockcharts.com
There were several bullish factors to this past week’s rally including the fact that we had 6 breakouts from last week’s watch list of 12 stocks.
The distribution day count remains low with still only 1 on the S&P 500 and just one on the Nasdaq.
Currently, the market continues in a confirmed uptrend.
Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases. This week, I ran my routine stock screens, yet did not find any new stocks to add to our weekly watch list. I will continue screening throughout the week and post any additions. If anyone is looking for any specific setups, long or short, please let me know.
We now have a total of 7 stocks which we will be watching for a traditional breakout to new highs. (see 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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BREAK OUT UPDATE:
| SYM | LAST | ADDED TO WATCH LIST | TRIGGER PRICE |
BREAKOUT DATE |
MAX BUY PRICE |
CURRENT % GAIN/ LOSS |
| TEAM | $98.98 | 1/27/19 | $100.10 | 2/1/19 | $105.11 | -1.12% |
| GIB | $66.34 | 1/27/19 | $66.63 | 2/1/19 | $69.96 | -0.44% |
| LLY | $120.80 | 12/30/18 | $119.94 | 1/31/19 | $125.94 | +0.79% |
| NOW | $221.51 | 1/6/18 | $192.26 | 1/30/19 | $201.87 | +15.21% |
| STOR | $31.67 | 1/27/19 | $31.15 | 1/29/19 | $32.71 | +1.67% |
| CYBR | $88.48 | 1/23/19 | $81.98 | 1/28/19 | $86.08 | +7.93% |
See This Week’s BreakOuts From Our…
Stock WatchList: Morning Update HERE
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YOU CAN REQUEST A COMPLIMENTARY COPY OF THIS WEEK’S COMPLETE SUNDAY STOCK REPORT AND WATCH LIST HERE