Richard-James– 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.


5:15 AM – MORNING MARKET UPDATE & WATCH LIST

NOTE: Today’s watch list can be found here.

Last week the major averages got hit with some rather severe selling in the later half of the past week as treasury yields jumped and worries about rising interest rates took their toll on the latest rally-run.


QUOTE OF THE DAY:

“If opportunity doesn’t knock, build a door.”
– Milton Berle


Bond yields jumped to the highest level since 2011, and dampened investors’ optimism for equities, and especially tech stocks. The yield on 10-year shot to  3.24%, compared with 3.05% last week.

The concerns overshadowed the September jobs report, which pointed to strength in the labor market as well as the broader economy.

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Looking for a Like-Minded Professional Who Manages Money ?
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One question that I am regularly asked is – “Can you recommend a professional who manages money using the same methodology which your services are based upon?”

Over the years, there has been just a handful of these professionals who have stood out from the rest, and who I would highly recommend to anyone who is looking for professional guidance.

One of them is Jack Elvestrom and here’s why… 

CONTINUED HERE

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On Thursday, the Dow suffered its biggest one-day percentage drop since August, while both the S&P and the Nasdaq logged the biggest daily drop since late June.

The market did pare its losses on Friday, yet still ended with its worst week since March.

For the week, the S&P 500 lost -1% , the Dow closed basically flat, while the Nasdaq declined -3.2%. The composite broke below an upward trend line and closed below its 50-day moving average.

Chart courtesy of stockcharts.com.

The S&P 500 booked its second straight weekly decline. The benchmark’s chart fared better though as the index closed above its 50-day line after a brief dip below.

The recent jump in bond yields was partly exacerbated on Wednesday by the Fed’s Reserve Chairman Jerome Powell who stated – “…we are a long way from neutral at this point.” The neutral rate refers to the point at which interest rates neither boost nor slow the economy, and many investors interpreted the comments as suggesting that the Fed may be eager to raise federal-funds rates more rapidly than had been previously expected.

Many leading stocks which had already been struggling to say the least (and this includes our Sept. breakouts), continued to take damaging blows during Thursday and Friday’s sell off.

On Monday, U.S. stock markets are open for trade, but the bond markets are closed in observance of Columbus Day. This could be a blessing and relieve some of the competing tensions, albeit possibly only short-term.

As I have have always preached – no matter the market you should be continually running stock screens and maintaining a watch list of high-ranked leaders which are setting up in bullish technical bases.

I ran my routine stock screens over the weekend, yet did not add any new stocks to our watch list.

We still have 14 stocks which we will be watching for the next buyable breakout – see here.

One stock in particular is NXST which was just added on Friday morning. This media-radio/TV leader continues to maintain its 50 DMA while carving out its base.

Read more on NXST from IBD here.

Chart courtesy of stockcharts.com – Click chart to enlarge.

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.

Current Portfolio Members can 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.

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. _________________________________________________

About the Founder: Richard-JamesJames 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.