This Week’s Sunday Stock Report – 3/10/18
– 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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0 BreakOuts This Past Week | 5 Stocks on Our WatchList for the Week
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[dropcap]A[/dropcap]fter some signs of initial weakness during the previous week, the market entered its deepest correction of 2019 with the Dow being down -3% mid-day Friday.
The fact that a -3% dip qualifies for that shows just how strong the advance of the past two months has been.
The major averages, closed lower every day this week as several issues weighed on investor’s sentiment.
We had continued uncertainty over a U.S.-China trade deal and the European Central Bank, which announced new measures to support a slowing economy on Thursday. On Friday, there was a lackluster jobs report and a sharp drop in Chinese exports which heightened worries around the global economy’s overall health.
The Dow Jones lost -2.2% on the week and posted its lengthiest slide since an eight-session skid that ended June 21st. Next support for the blue chips is at the 50-day moving average, currently at 24,809.
Chart courtesy of stockcharts.com
For the week, the Nasdaq declined -2.5%, marking its weakest stretch since April 25th. The tech-laden index pulled back from noted resistance of some prior highs, then quickly sliced its 200-day moving average.
Chart courtesy of stockcharts.com
The S&P 500 index fell -2.2% for the week, as it was turned back from a previously noted area of resistance of the former highs. This was the bellwether’s worst string of losses since November 14th.
Chart courtesy of stockcharts.com
All three of the benchmarks remain well north of their rising 50-day moving averages.
Also of note, the Dow Jones Transportation Average has fallen in 11 consecutive sessions. This is the lengthiest series of losses since 1972. The index is a proxy for the health of the overall economy, and the stumble comes amid increased fretting over the health of the global economy.
As I stated here last week:
- The Nasdaq may now be facing some resistance of its previous highs/lows.
- The S&P 500 – 2815 is the previous highs and that level now deserves watching.
- The market’s current rally-run has been impressive, but could possibly be starting to consolidate here.
We now have 6 distribution days on the S&P 500, and 5 on the Nasdaq.
In a mid-week update to Portfolio Members, I stated – if there is now clearly a sharp increase in the number of distribution days, that’s not good for bulls.
The general rule is – that five or six distribution days over a period of about four weeks can be a signal that the market’s uptrend is weakening.
Appropriately so, we had 0 breakouts from last week’s watch list, as this is not an ideal time in a rally cycle to be buying fresh breakouts.
FROM IBD: Stock Market Correction Or Minor Pullback?
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 and added 1 new stock to our weekly watch list. I’ll continue running screens all week. If anyone is looking for anything specific, long or short, please let me know.
We now have a total of 5 stocks which we will be studying 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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This past week we had 0 breakouts from our weekly watch list.
Here is an update on all breakouts from 2019.
STATS: All 2019 BreakOuts From the Technical SetUps WatchList
| SYM | ADDED TO WATCH LIST |
BREAKOUT DATE |
BREAKOUT PRICE |
FRIDAY’S (3/8) CLOSE PRICE |
CURRENT % GAIN/ LOSS |
| CRM | 2/24/19 | 2/28/19 | $163.67 | $155.06 | -5.26% |
| SRE | 2/24/19 | 2/26/19 | $120.10 | $122.30 | +1.83% |
| TMO | 2/24/19 | 2/25/19 | $252.61 | $249.85 | -1.09% |
| FE | 2/6/19 | 2/21/19 | $39.98 | $40.89 | +2.28% |
| HSY | 2/14/19 | 2/20/19 | $110.40 | $111.24 | +0.76% |
| TMUS | 1/23/19 | 2/15/19 | $71.04 | $70.65 | -0.55% |
| ABT | 12/12/18 | 2/12/19 | $75.02 | $76.63 | +2.15% |
| ORLY | 12/30/18 | 2/7/19 | $363.30 | $364.10 | +0.22% |
| DG | 1/23/19 | 2/7/19 | $117.34 | $118.71 | +1.17% |
| TTD | 1/23/19 | 2/4/19 | $149.10 | $194.35 | +30.35% |
| DATA | 1/27/19 | 2/4/19 | $131.92 | $124.10 | -5.93% |
| TEAM | 1/27/19 | 2/1/19 | $100.10 | $104.25 | +4.15% |
| GIB | 1/27/19 | 2/1/19 | $66.63 | $65.88 | -1.13% |
| LLY | 12/30/18 | 1/31/19 | $119.94 | $126.70 | +5.64% |
| NOW | 1/6/18 | 1/30/19 | $192.26 | $233.95 | +21.68% |
| STOR | 1/27/19 | 1/29/19 | $31.15 | $32.29 | +3.66% |
| CYBR | 1/23/19 | 1/28/19 | $81.98 | $106.83 | +30.31% |
| CIEN | 12/30/18 | 1/7/19 | $35.14 | $39.01 | +11.01% |
| DORM | 12/30/18 | 1/7/19 | $91.42 | $82.91 | -9.31% |
CHARTS: All 2019 BreakOuts From the Technical SetUps WatchList
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
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 services courtesy of stockcharts.com. Annotations by James Taulman.
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
Chart courtesy of stockcharts.com
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