– 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.
The market posted a rather “flat” day yesterday, as the major averages took a much-needed breather from a historic 6-day run-up.
This morning U.S. stock futures are declining a bit ahead of the opening bell.
European markets are sinking in early trading.
The majority of Asian markets closed the week with small losses.
The headline of our Market Update yesterday read – “Watching TBI, TSM and TREX to Break Out”
We did have TSM break out and confirm a BUY signal as it traded above its TRIGGER PRICE while volume was on pace to be more than +50% above the stock’s average volume.
TSM was added to the Technical SetUps WatchList on the morning of 2/14 as shares were setting up in a base of consolidation between $28–$31 while the stock was trading near all-time highs, yet not extended from support of the 50-day moving average.
As I reported yesterday morning – “Had some very nice action on Monday with gains of +3.2% with a +60% increase in volume. I am expecting some follow-through with a breakout to new highs. Ranks are solid.”
I issued a BreakOut Alert at 10:48 AM which stated – “At this point, that stock’s volume is confirming a BUY signal.”
Regardless of how ultimately the TSM trade works out, this is how it is done.
Going forward, any above average volume declines would of course be the first concern. We have our noted support levels for this stock listed for Premium Members on the Current Portfolio Coverage page here.
Early this morning, I ran my routine stock screens, yet did not add any new stocks to any of our watch lists.
I did remove MGM from our Technical SetUps WatchList as management reported earnings yesterday morning, and the stock opened with a gap down of -7% and went on to close the day even lower.
We have 3 stocks on our Technical SetUps WatchList and another 6 on our TrendLine SetUps WatchList. There continues to be 0 stocks which meet the strict criteria for the High-Ranked Leaders WatchList.
Of those 9 high-ranked set-ups, let’s take a closer look at TREX.
The company has a solid fundamental history with nice quarterly earnings comparisons percentage increases (+63%, +42%, +36% and +73% in the latest quarter).
Shares of this leader have been building a base near all-time highs and are now near/above the 50-day moving average. As longer-term members know, I consider this technically ideal. If stock breaks out and triggers a BUY signal, then there is no resistance in the way of any further possible gains, while in the event of a pull back, we have sound support (50 DMA = $67.81) just below our BUY PRICE.
Chart courtesy of stockcharts.com – Click chart to enlarge.
The most important issue is that the company will announce earnings on Tuesday before the open.
The stock may trigger a BUY signal by default if its shares trade above the TRIGGER PRICE with the required volume, however, keep in mind that pre-earnings/earnings breakouts can be more rewarding, however do carry more risk. So, caution is advised.
As a reminder – the exchanges will be closed on Monday for Donald Trump Day.
A much needed 3-day weekend ahead.
I’ll be working just nearly the same… Good thing, I love what I do.
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Also, Premium Members can view all of today’s watch lists here.
Any questions or concerns, please email me directly at firstname.lastname@example.org
About the Founder:
James F. Taulman – For more than 8 years James had served as Editor-in-Chief an 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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