This Week’s Sunday Stock Report – 3/31/18
– 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 | 5 Stocks on Our WatchList for the Week
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s the 2019 first-quarter ended this week, the U.S. stock market recorded its biggest 1st quarterly gain in about a decade.
The major averages wrapped up the quarter strong on Friday with renewed optimism on the progress of trade talks between Washington and Beijing.
The Q1 rally had been characterized by three factors: a sharp rebound off the Christmas Eve lows, increasing optimism in U.S.-China trade talks, a sharp reversal in the Federal Reserve’s monetary policy stance, and lastly, signs of a global economic slowdown.
For the week, the Dow Jones Industrials netted a gain of +426 points or +1.6% to close at 25928.68. The index is nearing 26,000, and previous highs, more specifically near ~26,200.
The blue-chips continue to trade in a range just below their previous highs and above the 50-day moving average. This could be considered healthy technical action and a digestion of the first-quarter gains of +11%.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The Nasdaq Composite gained +1.3% on the week and booked its biggest 1st quarterly gain (+16%) since 2012.
Since breaking above the November highs in mid-march, the index has remained above that level.
The November highs of 7572 would be a point to watch during a potential pullback with the round-750o and coinciding moving average offering more significant support.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The S&P 500 index added +1.2% this week closing strong on Friday with some above average volume gains. For the quarter, the bellwether notched its best start to a year since 1998.
Of late, the index has basically held support of the round-2800.
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
The distribution day count as I understand is now at 6 on Nasdaq, and 7 on S&P 500. Even with this week’s bullish action, the uptrend remains officially – “Under Pressure”.
We had another 2 breakouts from last week’s watch list (CHD, MITK). Both closed the week with modest gains of +2.4% and +1.8% respectively. (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 2 new stocks to our weekly watch list. (see below)
We currently have a total of 5 stocks which we will be watching for a traditional breakout to new highs. (see below)
An announcement of a completed comprehensive trade deal with China could be a catalyst to move the market higher and spring fresh breakouts. Now it the time to have your personal watch list ready.
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 2 breakouts from our weekly watch list of 6 stocks.
Breakouts continue to be volatile, and last week’s theme continues this past week – negative reversals.
for now a second week. all have basically negatively reversed (several on their breakout day) and closed off of their breakout highs.
Here is an update on all of this week’s breakouts.
| SYM | LAST | ADDED TO WATCH LIST |
BREAKOUT PRICE |
BREAKOUT DATE |
MAX BUY PRICE |
CURRENT % GAIN/LOSS |
| CHD | $71.23 | 1/23/19 | $69.59 | 3/28/19 | $73.07 | 2.36% |
| MITK | $12.24 | 3/24/19 | $12.02 | 3/25/19 | $12.62 | 1.83% |
1 – Church & Dwight Co., Inc. (CHD -NYSE)
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| CHD | $71.23 | 1/23/19 | $69.59 | 3/28/19 | $73.07 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE |
CURRENT % GAIN /LOSS |
| $70.00 | $67.50 | $73.07 | +2.36% |
2 –Mitek Systems, Inc. (MITK – Nasdaq)
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| MITK | $12.24 | 3/24/19 | $12.02 | 3/25/19 | $12.62 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE |
CURRENT % GAIN /LOSS |
| $12.00 | 50 DMA ($11.19) |
$11.61 | +2.36% |
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