This Week’s Sunday Stock Report – 8/11/19

– 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 | 7 Stocks on Our WatchList for Next Week

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It was a very volatile week for the major averages as investors were focused on the uncertainty and economical factors of the U.S vs. China trade war.

It all started on Monday when the Dow Jones lost well over -700 points and fell to its 200-day moving average, marking a new worst day of the year for the key indexes.

After breaking below 27,000 the previous week, the Dow violated another level of support this past week as it traded below its 50-day moving average for the entire week.

The index did find the support of its 200-day moving average – shown in a positive reversal on Wednesday.

The blue-chips ended the week well off of Monday’s low, yet still down -197 points or -0.75% on the week, closing at 26,287, fairly well below (-1%) its 50-day moving average of 26,549.

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

The Nasdaq declined -45 points or a -0.56% this past week.

On Thursday, the Composite bullishly got back above its 50-day moving average and also closed above the psychological 8000.

However, the selling resumed on Friday as the tech-laden index lost -1% that day, and closed the week at 7959.

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

The S&P 500 was down as much as -3.8% this past week.

The index ran into resistance of its 50-day moving average on Thursday, and could not clear that important technical hurdle.

In the end, the bellwether lost -13 points, or –0.46% on the week and closed at 2919.

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

There is currently no running distribution day count as the market is officially in a correction.

However, with Wednesday’s bullish positive reversal we are now in the midst of another rally attempt. Hence, we are looking for a Follow-Trough Day.

Starting Monday, we will start watching for a session where one of the major averages closes with a strong gain on volume greater than the previous day, as that action will confirm a new uptrend.

This is also a point in the market’s cycle where I focus more closely on any individual breakouts; such as how many stocks are breaking out.

We did have 3 breakouts this past week. All were, however, earnings breakouts – meaning they broke out above their TRIGGER PRICE as each announced earnings. I rather see stocks break out on non-news, and not sure how much these breakouts help determine if the current rally attempt has any legs.

Of continuous note, earnings breakouts do carry much more risk, yet can be more rewarding. We have had 5 breakouts so far this month (all on earnings). All 5 closed Friday with gains ranging from +2.7% to as much as +6.8%.

Regardless of market conditions, I continue to run stock screens on a daily basis searching for high-ranked leaders, with solid fundamentals that are building bullish technical bases. This week I added 5 new stocks to the weekly watchlist as with a rally attempts underway, this becomes a crucial time to build and closely monitor a watch list.

There are now 7 stocks that will be watching for a traditional break out to new highs this coming week. (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: 

So far for the month of August, we have had 5 high-ranked stocks break out from our weekly watch lists.

Several of these breakouts remain in a buyable range. For those who bought the initial breakout, SUPPORT LEVELS AND CHARTS have been updated below.

ALL AUGUST 2019 BREAKOUTS:

#5: Career Education Corp. (NASDAQ – CECO)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
CECO $21.89 7/16/19 $20.49 8/8/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
$20.00 50 DMA $18.85 $21.51 +6.83%

Questions? – Click here.

#4: Servicemaster Global Holdings, Inc. (NYSE – SERV)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
SERV $56.97 7/18/19 $55.46 8/6/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
$55.00 50 DMA $51.02 $58.23 +2.72%

Questions? – Click here.

#3: Tyson Foods, Inc. (NYSE – TSN)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
TSN $88.37 7/7/19 $84.40 8/5/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
50 DMA $80.00 $77.65 $88.62 +4.70%

Questions? – Click here.

#2: TopBuild Corp. (NYSE – BLD)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
BLD $89.92 8/2/19 87.06 8/2/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
$83.00 50 DMA $80.10 $91.41 +3.29%

Questions? – Click here.

#1: NeoGenomics, Inc. (NASDAQ – NEO)

SYM LAST ADDED TO WATCH LIST BREAKOUT
PRICE
BREAK
OUT
DATE
NEO $25.78 7/18/19 $24.94 8/1/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
$25.00 50 DMA $22.94 $26.19 +3.37%

Questions? – Click here.

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RELATED LINKS:

IBD: What Is A Follow-Through Day?

IBD: Growth Stocks And How To Invest: Why It’s Smart To Focus On Earnings Results

IBD: When To Buy Growth Stocks: Breakaway Gaps And The Art Of The Breakout

IBD: Why A Breakout Is Like A ‘Get Out Of Jail’ Card For Growth Stocks

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WATCH LIST UPDATE:

I continue to run stock screens on a daily basis searching for high-ranked leaders, with solid fundamentals that are building bullish technical bases. This week I added 5 new stocks to the weekly watchlist.

There are now 7 stocks that will be watching for a traditional break out to new highs this coming week.

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 % FTP
ADP $167.73 8/10/19 $170.55 3,152,550 $179.08 -1.65%
INFO $64.41 8/10/19 $66.17 2,758,800 $69.48 -2.66%
VMC $140.00 8/10/19 $140.82 1,467,600 $147.86 -0.58%
IQV $156.00 8/10/19 $164.23 1,980,750 $172.44 -5.01%
CAE $27.12 8/10/19 $28.13 291,150 $29.54 -3.59%
BSX $43.20 8/4/19 $43.63 10,547,700 $45.81 -0.99%
AWI $95.01 7/31/19 $100.54 594,150 $105.57 -5.50%

* % FTP = A stock’s price percentage from its TRIGGER PRICE.

ANNOTATED CHARTSTechnical SetUps WatchList

The charts below are for each stock that is currently on our weekly watch list.

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.

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.

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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