This Week’s Sunday Stock Report – 3/8/20

– 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 BreakOut Alerts This Past Week | 6 Stocks on Our WatchList for Next Week

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The major averages had another very wild week as investors struggled with how to react to the growing global coronavirus outbreak.

After the market closed the prior week with its worst performance since the 2008 financial crisis, the Dow Jones posted its best session of its more than 100-year history on Monday, closing with a +1,294 point session gain.

Then, on Tuesday the benchmark tumbled nearly -800 points, while the Federal Reserve announced an emergency half-point interest rate cut. This was the first of its kind since 2008 — as central bankers around the world loosened monetary policy as a way to combat the fallout of the virus.

The roller coaster ride continued as Dow Jones rallied nearly +1,200 points on Wednesday, before the indices dropped more than -3% each on Thursday.

On Friday morning, we got the jobs report which showed the U.S. economy added 273,000 jobs in February. Although the month’s jobs number was much better than expected, the major averages continued Thursday’s decent with a gap down Friday morning. A late-afternoon rally did help the indexes end the whipsaw week with net gains.

In the end, the Dow gained a solid +455 points or +1.79% on the week, ending at 25,865.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The Nasdaq did also close higher on the week, albeit by just +8 points (+0.10%), to 8576.

The index has managed to hold support of its 200-day moving average with only two intra-day dips below that important technical level.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The S&P 500 gained +18 points or +0.61% on the week.

The bellwether ended the week at 2972.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

The market remains officially in correction mode. Hence, there is no distribution day count for us to track.

Earnings season continues with 212 companies reporting next week.

After having no BreakOut Alerts the previous week, we had 3 alerts this past week. Charts and support levels for all 3 have been updated below.

If you bought any of the 13 BreakOut Alerts that were issued over the past 30-days, be sure to check the new Premium Members Area at BuyingBreakOuts.com for ongoing chart analysis and updated support levels throughout the week here.

While reviewing over 197 charts this weekend, I added 1 new stock to the watch list. There are now 6 stocks that we will be watching for a traditional break out to new highs this coming week. The watch list is updated throughout the week here.

IMPORTANT NOTE: After nearly 20 years and almost 1000 weekly issues, we will cease publishing this weekly newsletter. The recent improvements that we have made at our BuyingBreakOuts.com website, with daily updates and more, simply supersede a weekly report. We have not been offering annual memberships to the Sunday Stock Report for more than a year, and all prepaid longer-term subscriptions have now been completely fulfilled. For current members who wish to convert to the BuyingBreakOuts.com Premium Membership, all you have to do is complete the brief registration form here. Payment options ($97/year) will be made available at a later date on an individual basis. Until then, enjoy access at no cost. We thank you all for the many years of your loyal patronage, and look forward to serving you with a more dynamic product at the new BuyingBreakOuts.com.

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BREAKOUT ALERT UPDATE: 

There were 3 “BreakOut Alerts” this past week. The chart and support levels have been updated below.

#3 Quidel Corporation (NASDAQ – QDEL)

Quidel Corporation develops, manufactures, and markets diagnostic testing solutions for applications in infectious diseases, cardiology, thyroid, women’s and general health, eye health, gastrointestinal diseases, and toxicology worldwide.

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
QDEL $83.27 3/2 $82.82 3/4

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$86.96 $82.00 50 DMA $76.19 +0.54%

Questions? – Click here.

#2 StoneCo Ltd (NASDAQ – STNE)

StoneCo Ltd. provides financial technology solutions that empower merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil.

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
STNE $40.00 3/1 $45.82 3/3

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$48.11 $40.00 $38.00 $42.15 -12.72%

Questions? – Click here.

#1 Encore Capital Group, Inc. (NASDAQ – ECPG)

Encore Capital Group, Inc., a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of financial assets worldwide.

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
ECPG $38.64 3/1 $37.71 3/2

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

MAX BUY PRICE 1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE % GAIN/
LOSS
$39.60 $37.00 200 DMA $34.69 +2.47%

Questions? – Click here.

 

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RELATED LINKS:

IBDHow To Trade Stocks: Do You Know The Seven Most Important Words On Wall Street?

IBDWant Long-Term Stock Market Gains Like From Apple, Amazon?

IBDBest Mutual Funds Put Over $1 Billion In Apple, Microsoft, FANG Stocks

IBDBig Data Companies And Data Analytics: The Stocks To Buy And Watch

 

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WATCH LIST UPDATE:

While reviewing over 197 charts this weekend, I added 1 new stock to the watch list. There are now 6 stocks that we will be watching for a traditional break out to new highs this coming week.

NOTE: There may be additional watch list stocks here.

TRADING CRITERIA TABLE Technical SetUps WatchList

Any trading above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have this set up confirming a BUY signal up to the MAX BUY PRICE.

SYM LAST ADDED TO WATCH LIST TRIGGER
PRICE
TRIGGER
VOLUME
MAX BUY PRICE % FR TRIG PR
EPAM $226.40 3/7 $242.19 419,250 $254.30 -6.52%
ENTG $52.60 3/4 $59.15 1,383,300 $62.11 -11.07%
IPHI $80.27 3/4 $86.52 1236000 $90.85 -7.22%
SSD $82.64 3/4 $88.35 407250 $92.77 -6.46%
TEAM $144.36 3/4 $156.22 2489850 $164.03 -7.59%
EDU $128.83 3/2 $142.48 2,083,800 $149.60 -9.58%

ANNOTATED CHARTSTechnical SetUps WatchList

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Chart services courtesy of stockcharts.com. Annotations by James Taulman.

NOTE: There may be additional watch list stocks here.

Questions? – Click here.

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About the Author: James F. Taulman – James served as Editor-in-Chief of the first independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.

Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

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