This Week’s Sunday Stock Report – 8/18/19

– 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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5 BreakOut This Past Week | 8 Stocks on Our WatchList for Next Week

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It was a whipsaw week, to say the least as the volatile action increased this past week.

We started the week with the focus on the continuing trade war between China and the United States. The risk is that the tit-for-tat tariff battle could turn an economic slowdown into a recession.

On Monday, the Dow closed nearly -400 points lower, or -1.5%. The S&P 500 and Nasdaq both closed -1.2% lower. China-sensitive stocks decline more than -1%.

Monday’s losses were quickly reversed on Tuesday, with Dow closing nearly +400 points higher, and the Nasdaq rising by +2%, the S&P 500 ending up +1.5%.

Wednesday, we saw the Dow opened –400 points lower after the bond market flashed a warning signal, predicting a recession. Losses accelerated throughout the day with the Dow ultimately losing –800 points, or -3%. The S&P 500 and the Nasdaq also closed down by similar margins.

The mid-week freefall mercifully didn’t continue into Thursday. This time the Dow closed +100 points higher after analysts stated they don’t expect the U.S. to enter a recession this year given the economy’s strength.

That advanced continued on Friday, with the Dow gaining another +307 points, or +1.2%. The S&P 500 added +1.4% and the Nasdaq ended up +1.7%. This was not enough, however, for the major averages as it became the third straight week of losses for the indexes.

The blue-chips ended the week with a net loss of -401 points, or +1.53%, at 25,886.

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

The Nasdaq declined -63 points or a -0.79% this past week, to close at 7895.

The index did reclaim its 50-day moving average during the previous week, yet quickly fell back below this important technical level where it remained this past week.

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

The S&P 500 lost -30 points, or -1.03% on the week and closed just under 3000 at 2889.

The bellwether continued to run into what is resistance of its 50-day moving average as it was turned back from that level several times since falling below there on 8/5.

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

As stated here last week, 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. That occurred on Tuesday of this past week, yet was quickly followed by a distribution day on Wednesday.

The market is now officially in a new uptrend. However, each of the major indexes remain below their respective 50-day moving average.

Next week, investors will be anticipating Fed Chair Jerome Powell’s comments as he speaks Friday morning at the Fed’s annual Jackson Hole symposium in Wyoming. With interest rates making historic moves globally, the pressure is on Powell to clarify the Fed’s intention when it comes to interest rate cuts.

Markets want to know whether the Fed is in a serious longer-term cutting cycle, or just planning a few cuts as an insurance policy against an economic downturn.

We had only 1 breakout, this past week, from last week’s watchlist. (see below)

While running the weekend stocks screens, there were many stocks trading higher Friday with volume conviction. This weekend I added another new stock to the watchlist.

There are now 8 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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BREAKOUT UPDATE: 

UPDATE: So far for the month of August, we have had 10 high-ranked stocks break out from our 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.

#10 Dunkin Brands Group Inc (NASDAQ – DNKN)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT DATE
DNKN $82.84 8/16/19 $83.09 8/16/19

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 $79.00 $76.44 $87.24 -0.30%

Questions? – Click here.

#9 Invitation Homes Inc (NYSE – INVH)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAKOUT DATE
INVH $28.32 8/16/19 $28.27 8/16/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/LOSS
$28.00 50 DMA $26.01 $29.68 +0.18%

Questions? – Click here.

#8 Maximus, Inc. (NYSE – MMS)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT DATE
MMS $77.37 8/16/19 $77.09 8/16/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/LOSS
$75.00 50 DMA $70.92 $80.94 +0.36%

Questions? – Click here.

#7 Terreno Realty Corporation (NYSE – TRNO)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
TRNO $50.77 8/16/19 $50.89 8/16/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/LOSS
$50.00 50 DMA $46.82 $53.43 -0.24%

Questions? – Click here.

#6 Vulcan Materials Company (NYSE – VMC)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
VMC $141.73 8/10/19 $140.82 8/12/19

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

1st
SUPPORT
2nd
SUPPORT
MAX STOP LOSS GUIDE MAX BUY PRICE % GAIN/
LOSS
$140.00 50 DMA $129.55 $147.86 +0.65%

Questions? – Click here.

#5 Career Education Corp. (NASDAQ – CECO)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
CECO $22.08 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 +7.76%

Questions? – Click here.

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

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
SERV $57.33 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 +3.37%

Questions? – Click here.

#3 Tyson Foods, Inc. (NYSE – TSN)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
TSN $87.80 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 +3.91%

Questions? – Click here.

#2 TopBuild Corp. (NYSE – BLD)

SYM LAST ADDED TO WATCH LIST BREAK
OUT
PRICE
BREAK
OUT
DATE
BLD $90.30 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 +3.72%

Questions? – Click here.

#1 NeoGenomics, Inc. (NASDAQ – NEO)

SYM LAST ADDED TO WATCH LIST BREAKOUT
PRICE
BREAK
OUT
DATE
NEO $25.24 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
50 DMA $22.00 $22.94 $26.19 +1.20%

Questions? – Click here.

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RELATED LINKS:

IBD: The Stock Market and Major Indexes

IBD: Always Check Price & Volume

IBD: Add-On & Alternative Buy Points

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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 weekend I added 1 new stock to the watchlist.

There are now 8 stocks that we 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
PAYC $241.42 8/18/19 $246.95 947,700 $259.30 -2.24%
BEP $36.29 8/16/19 $36.61 232,200 $38.44 -0.87%
WM $119.12 8/16/19 $119.66 2,510,850 $125.64 -0.45%
ADP $167.02 8/10/19 $170.55 3,152,550 $179.08 -2.07%
INFO $64.83 8/10/19 $66.17 2,758,800 $69.48 -2.03%
IQV $155.21 8/10/19 $164.23 1,980,750 $172.44 -5.49%
BSX $42.15 8/4/19 $43.63 10,547,700 $45.81 -3.39%
AWI $95.50 7/31/19 $100.54 594,150 $105.57 -5.01%

* % 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.

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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