– 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.
1:00 PM – Today’s BreakOuts & Portfolios Update
EDITORIAL NOTE: James prepared this update early this morning as he has some important personal business to attend to today.
[dropcap]T[/dropcap]his latest rally has brought us a flurry of new breakouts. I can not recall seeing this many stocks breaking out and confirming BUY signals at this rate throughout my 15 years of being in the business.
At this point, if you been working with me for the past several months you should have a good number of stocks in your portfolio.
As I mentioned this morning – We will continue not to predict and take things on a stock-by-stock basis. Generally speaking, stocks which break out with volume are BUYS, those that break down below our noted support areas are SELLS.
Here are the guidelines on how I update my trading criteria when a stock is added to my portfolio.
1st SUPPORT: is going to be the highs of the previous base, or the previous resistance. Remember, this is where you set your TRIGGER PRICE from originally. The break above that resistance was the BUY signal. As with any area of resistance – when it is taken out to the upside, then it becomes support in the event of a pullback.
2nd SUPPORT: is usually the 50-day moving average. The only time this will not be the case, is when there is some previous lows, above the 50 DMA. For instance, possibly the lows of the base. Regardless, the 50-day moving average is a formidable area of support that should always be respected.
MAX STOP LOSS: Using the formula shown in the diagram above you will set this criteria at -8% below your BUY PRICE. This is a guide, and I do not recommend setting a SELL STOP order with your broker for that price.
2017 Portfolio – Trading Criteria Updated
TrendLine Portfolio – Trading Criteria Updated
Any questions or concerns, of course, please email me at email@example.com.