5:30 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
This morning trading resumes after Wednesday’s observance of the death of former President George Herbert Walker Bush.
After a huge sell off on Tuesday where the the Dow closed down -3.1%, the S&P 500 dropped -3.2% and the Nasdaq shed -3.8%, Dow futures are currently off another -450 points this morning.
QUOTE OF THE DAY:
“My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style.”
– Maya Angelou
The chief financial officer of Chinese tech giant Huawei has been arrested in Canada.
The arrest sent major shock waves through Asian stock markets. The main index in Hong Kong fell more than -2.5% and Tokyo stocks dropped nearly -2%. Shanghai’s market slid about -1.7%.
Markets were also unsettled in Europe, where major indexes fell by up to -1.5%. US stock futures were pointing down more than -1%.
The arrest could overshadow talks between the United States and China aimed at defusing their damaging trade war. Investors were already worried that a truce negotiated at the G20 would not hold.
As far as earnings, we have Duluth Trading Co (DLTH), H&R Block (HRB), Kroger (KR), Lands’ End (LE), Michaels Stores (MIK) and The Children’s Place (PLCE) will release earnings before the bell.
Lululemon Athletica (LULU) and Ulta Beauty (ULTA) will follow after the close.
The US Census Bureau will release its October trade balance report at 8:30 a.m. ET.
Now You Can Start Receiving James’ –
Technical SetUps WatchList Each Market Morning
He is looking for those select few which are setting up in sound technical bases and which looked poised to breakout that day.
Each stock is listed with specific trading criteria such as a TRIGGER PRICE, TRIGGER VOLUME and MAX BUY PRICE.
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Just when a new rally got going with a confirmed follow through day last Wednesday, some solid breakouts through the week, and a strong close on Friday, we have what happened on Tuesday with a huge selloff day, and today looks just as bad.
The only thing we can do is pay close attention to the recent breakouts. Take it one stock at a time.
Of course, we can expect some pullback in those individual issues, so support areas and price and volume comparisons should be watched closely.
Our two latest buyable breakouts from our watch list were on Monday as both EL and ICLR blasted above their posted TRIGGER PRICE.
Each has pulled back, yet remain above support.
|SYM||LAST||ADDED TO WATCH LIST||BUY PRICE||BUY DATE||% P/L|
Chart courtesy of stockcharts.com.
|SYM||LAST||ADDED TO WATCH LIST||BUY PRICE||BUY DATE||% P/L|
I ran my routine stock screens this morning yet did not add any new stocks to our watch list.
We now have a total of 8 stocks which we will be watching for the next buyable breakout – see here.
One of those is COLM which broke out on Tuesday, yet the volume did not confirm a BUY signal.
Now you can get access all watch lists with updated trading criteria including –TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock here.
Missed any of these morning reports? You can find all previous reports here.
Standard rules apply – any gains above the stock’s TRIGGER PRICE while the day’s volume is at least on pace to make the TRIGGER VOLUME would have any of these set ups confirming a BUY signal up to their MAX BUY PRICE by default.
Keep in mind that when a stock breaks out – becomes potentially buyable – there are other factors to consider.
Volume on the breakout. A stock that is breaking out through resistance, with an increase in volume of +50% above the stock’s average volume (50 DAV), is showing more conviction and more demand. This is not saying – all lower volume breakouts will fail. Actually, we’ve seen many continue higher. If you have found that you did buy a stock that showed lower daily volume or volume under 50%, going forward – simply treat it a regular trade.
Earnings BreakOuts. Many stocks from our watch list will break out during earnings season. Earnings breakouts can be more rewarding, however, these trades carry much more risk then traditional (non-news) breakouts. One needs to also consider – the strength/weakness of the fundamental news that was just released along with the forward-looking guidance the company gave, investors response to the conference call, etc. For anyone who is not familiar with – buying earnings breakouts – I suggest that they sit through a few seasons to study, paper trade, and show some profits, before applying actual capital.
As always, if anyone has any questions – please feel free to email me at email@example.com as I would be glad to assist you.
About the Founder: 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. _________________________________________________ Disclaimer: James Taulman is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.