This Week’s Sunday Stock Report – 3/3/18
– 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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3 BreakOuts This Past Week | 2 Stocks on Our WatchList for the Week
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he 2019 rally continued for another week, although the Dow did close the week slightly off.
The Dow Jones Industrial Average closed lower by just -0.1%, which was just enough to snap a nine-week winning streak, the longest weekly run since May of 1995.
Chart courtesy of stockcharts.com
The Nasdaq closed higher for the 10th consecutive week, adding another +0.9% and remained above its 200-day moving average. It may now be facing some resistance of its previous highs/lows.
Chart courtesy of stockcharts.com
For the week, the S&P 500 gained +0.4%, marked its first close above the psychologically 2,800 level since Nov. 8th. Pundits point out that level has proved a key point of resistance over the past several trading sessions. As I noted last week, 2815 is the previous highs and that level now deserves watching.
Chart courtesy of stockcharts.com
The market’s current rally-run has been impressive, but could possibly be starting to consolidate here. That would actually be ideal, considering the advance from the Christmas Eve lows.
In the past 11 weeks, the Dow Jones Industrials and the S&P 500 have advanced +20%, while the Nasdaq Composite has jumped +25%.
We had 3 breakouts from last week’s watch list. (see below)
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 2 stocks which we will be watching for a traditional breakout to new highs. (see below)
As of Sunday night, the Dow, Nasdaq, and S&P futures are up solidly on new reports that a trade deal with China is very close.
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:
This past week we had another 3 breakouts from our weekly watch list.
| SYM | LAST | ADDED TO WATCH LIST |
BREAKOUT PRICE |
BREAKOUT DATE |
MAX BUY PRICE | CURRENT % GAIN/ LOSS |
| CRM | $164.53 | 2/24/19 | $163.67 | 2/28/19 | $171.85 | +0.53% |
| SRE | $121.26 | 2/24/19 | $120.10 | 2/26/19 | $126.11 | +0.97% |
| TMO | $264.06 | 2/24/19 | $252.61 | 2/25/19 | $265.24 | +4.53% |
1 – Salesforce.com, Inc. (CRM – NYSE)
This leader just broke out of our watch list on Thursday with an +18% increase in volume.
Shares opened strongly that morning, and traded above our TRIGGER PRICE of $163.67, yet then quickly sold off. By 10AM this stock was trading with a loss on its breakout day. From those early lows, shares traded to new highs at mid-day, then pulled back again to close the session two cents below the TRIGGER PRICE.
| SYMBOL | LAST | ADDED TO WATCH LIST |
BREAKOUT DATE |
BREAKOUT PRICE |
| CRM | $164.53 | 2/24/19 | 2/28/19 | $163.67 |
Chart courtesy of stockcharts.com
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $171.85 | $163.50 | 50 DMA ($148.81) |
$150.57 | +0.53% |
There were some additional gains on Friday with the same +18% increase in turnover.
We are going to put our 1st SUPPORT at the highs of the previous base, near $163.50. Below there we have the 50-day moving average for our next support, currently at $148.81 which is, however, unfortunately -10% below Friday’s close.
What is of most importance is that this stock is going to report earnings on Tuesday afternoon. Investors should expect some volatility around the time of the announcement.
2 – Sempra Energy (SRE – NYSE)
This was an earnings breakout as the company reported Q4 2018 earnings before the open on Tuesday then shares cleared the TRIGGER PRICE later that afternoon. Volume was surprisingly only +8% above the normal daily rate. Usually, earnings breakout have a considerable increase in turnover.
Shares continued higher each day for the remainder of the week.
| SYMBOL | LAST | ADDED TO WATCH LIST |
BREAKOUT DATE |
BREAKOUT PRICE |
| SRE | $121.26 | 2/24/19 | 2/26/19 | $120.10 |
Chart courtesy of stockcharts.com
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $126.11 | $118.50 | 50/200 DMAs ($113.00) |
$110.49 | +0.97% |
Going forward, we can put our 1st SUPPORT at the highs of the previous base, near $118.50.
Our 2nd SUPPORT will be the coinciding 50- and 200-day moving averages, near $113.00.
3 – Thermo Fisher Scientific Inc. (TMO – NYSE)
This selection was added to our watch list last Sunday and broke out first thing Monday morning, although volume was -25% normal rate. As we have seen, lower-volume breakouts have been working in this rally.
Shares continued to trade higher for the rest of the week, making gains each day.
| SYMBOL | LAST | ADDED TO WATCH LIST |
BREAKOUT DATE |
BREAKOUT PRICE |
| TMO | $264.06 | 2/24/19 | 2/25/19 | $252.61 |
Chart courtesy of stockcharts.com
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $265.24 | $252.00 | 50 DMA ($238.54) |
$232.40 | +4.53% |
Our 1st SUPPORT, in this case, is some previous highs near $252.00. Support below there is not until the 50-day moving average at $238.54.
Shares are current rather extended, so any considerable declines, especially with an increase in volume, would be your first concern.
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