– 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.
8:30 AM – MORNING MARKET UPDATE & WATCH LIST
SEE ALL MY CURRENT WATCH LISTS HERE: James’ Stock WatchLists
[dropcap]T[/dropcap]his morning, stock futures are pointing slightly higher as traders return from the long holiday weekend.
QUOTE OF THE DAY:
“Judge a man by his questions rather than his answers.”
– Voltaire
In Asia, stocks edged higher Tuesday. Hong Kong’s Hang Seng index jumped +0.4%, while the Shanghai Composite index rose +0.6%. Japan’s Nikkei gained +0.4%.
European markets, however, are mostly down. Britain’s FTSE 100 was flat in early trading after a long weekend, while stocks in Germany and France shed -0.4% and -0.5%, respectively.
Here at home, the Dow Jones continues to trade between its 50-day (resistance) and 200-day (support) moving averages. There is also near-coinciding resistance of the round-26K and further support offered by the March 11th low of 25,208.
26K & 50 DMA = RESISTANCE AREA
T R A D I N G R A N G E
MAR LOW & 200 DMA = SUPPORT AREA
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BREAKOUT UPDATE:
#1 Stock of the May 2019 BreakOuts
A TOTAL OF 4 BREAK-OUTS FOR MAY 2019
So far, for the month of May 2019 we have had a total of 4 breakouts from the weekly Sunday Stock Report Watch List.
Three of those (in the table below) have pulled back modestly, yet do remain above support.
One, Atlassian (TEAM) continues to hold onto its gains, as it closed the week at new all-time highs.
| SYM | LAST | ADDED TO WATCH LIST | BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE | % GAIN /LOSS |
| DRI | $120.13 | 5/4/19 | $122.47 | 5/20/19 | $128.59 | -1.91% |
| TWLO | $133.90 | 5/12/19 | $137.50 | 5/16/19 | $144.38 | -2.62% |
| MMC | $95.38 | 5/4/19 | $95.92 | 5/10/19 | $98.57 | -0.56% |
| TEAM | $129.52 | 5/2/19 | $117.16 | 5/8/19 | $123.02 | +10.55% |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
This very highly-ranked, fundamentally sound, leader was first added to the Sunday Stock Report Watch List on May 5th.
Shares broke out late-afternoon on May 8th as they traded above our posted TRIGGER PRICE of $117.16 while volume was running twice the normal rate.
This leader closed its break out day +6%, at the session highs, and at a new all-time high.
Even with the gap down of the broader market the following day, TEAM continued higher, adding an additional +7% gains.
Then on that Friday, the stock did dip very briefly in the morning, before quickly recovering and going on to close out the day with another +3% move.
During this three day advance, volume had been well above the normal rate as shares ratcheted higher from their 50-day moving average. This was a sign of institutional accumulation, and that is a characteristic we like to see accompany a buyable breakout.
On the following Monday (5/13), there was a sharp gap lower, along with the market. Shares did steadily recover for the next 3 sessions to close back at another new all-time high on Thursday (5/16).
This past week, the volatility continued, although in a more muted fashion. Shares ended Friday just 23 cents from a new all-time high close, up +10.5% from the BREAK OUT PRICE.
I am now going to raise our 1st SUPPORT up to the round-$120. This is only a developing area of support, as the stock has only tested here once. Not a strong support point, but definitely an initial line to watch.
I also adjusted our 2nd SUPPORT to the 50-day, currently $144.47.
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE |
CURRENT % GAIN/LOSS |
| $120.00 | 50 DMA | $107.79 | +10.55% |
As far as the broader market – if we do get a confirmation day on one of the major averages, that potential action will likely take stocks like TEAM higher.
However, let’s keep in mind that we are in officially in a correctional phase, and traders should be nimble.
If TEAM starts to pullback with an increase in volume, that would be a sign of potential trouble, especially if the market environment deteriorates.
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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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WATCHLIST UPDATE:
I ran my routine stock screens over the weekend, and added 1 new stock to our watch lists.
I removed SPLK as it has fallen too far below its TRIGGER PRICE.
There are now a total of 13 stocks on our watch lists.
Current Personal Portfolio Members can access all watch lists with updated trading criteria including – TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE for every stock here.
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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.
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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.