– 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.
7:30 AM – MORNING MARKET UPDATE & WATCH LIST
[dropcap]Y[/dropcap]esterday, U.S. markets completed their first back-to-back declines of 2019. The Dow closed -0.4% lower while the S&P 500 shed -0.5% and the Nasdaq dropped -0.9%.
Most European markets opened with gains following a positive trading session in Asia.
QUOTE OF THE DAY:
“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”
– Jimmy Dean
It’s earnings season. Delta Air Lines (DAL) will release earnings before the open. Pinnacle Financial (PNFP) and United Continental (UAL) will follow after the close.
Several more banks reporting today too. JPMorgan Chase (JPM) and scandal-ridden Wells Fargo (WFC) will report earnings before the open. Citi (C), the first US bank to report this earnings season, did so on Monday. Its revenues in the fourth quarter were lower than what Wall Street was expecting.
This weekend I released the following…
PORTFOLIO UPDATE: 2019 Rally Took Hold – Here is Where We Are at…
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Here is a quick update to the report above.
LONGS
FIVN – Lost -4% on Monday with a +25% increase in volume. Not good.
CIEN – Quietly holding up.
QNST – Pulled back slight yesterday after Friday’s negative reversal. Generally held up today in a tough day in the market.
DORM – Sold off today with a sharp increase in volume, and closed at the session lows. Not good.
SHORTS
DECK – Remains at our 1st COVER-PROFIT area.
ANTM – Like DECK, this stock is too – sitting right on support of its 200-day moving average.
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12 Potential Stocks to Short
Generally, all of these 12 stocks rallied from their December sell off lows with volume that was below average.
Each is now at an area of resistance, and could be headed lower, especially if the broader market pulls back.
| SYMBOL | PRICE | SECTOR |
| BJRI | $54.20 | RETAIL |
| DG | $113.10 | RETAIL |
| HZO | $20.48 | RETAIL |
| JBGS | $36.19 | REAL EST |
| VICI | $20.45 | REAL EST |
| AIV | $45.22 | REAL EST |
| DRE | $27.52 | REAL EST |
| HASI | $21.43 | REAL EST |
| ABR | $11.35 | REAL EST |
| HOLX | $42.53 | MEDICAL |
| HZNP | $21.94 | MEDICAL |
| DIS | $112.42 | MEDIA |
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Regardless of market conditions, I am always preparing a watch list of high-ranked leaders which are building bullish technical bases.
This morning, I ran my routine stock screens, and added 3 stocks to our TrendLine WatchList.
I removed SPLK and CIEN as each did trade above their TRIGGER PRICE, yet the volume did not make the TRIGGER VOLUME.
We now have a total of 9 stocks which we will be watching for a potential breakout.
SEE ALL MY CURRENT WATCH LISTS HERE: James’ Stock WatchLists
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 james@jamestaulman.com as I would be glad to assist you.
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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.