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.


8:30 AM – MORNING MARKET UPDATE & WATCH LIST

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

On Friday, the major averages posted their sixth positive session of the past seven, suggesting that Wall Street has shaking off uncertainty surrounding trade policy which has served as the market’s most severe headwind in recent months.


QUOTE OF THE DAY:

“We first make our habits, and then our habits make us.”
– John Dryden


For the week, the Dow closed +2.3%, the S&P 500 +1.5%, and the Nasdaq ended +1.8% higher. This is the second straight weekly advance for all three, as well as the Dow’s biggest weekly percentage gain since early June.

Definitive technical action was seen in the Dow as it reclaimed its 50-day moving average, and closed back above the 25,000 level for the first time in nearly a month.

The Nasdaq closed at a record level on Friday, while the S&P 500 finished above 2,800 for the first time since Feb. 1st. This pierced a psychological, round-number level that had proven a source of key resistance for the market since it stumbled badly into correction territory on Feb. 8th.

The S&P 500 now sits just -2.5% from its Jan. 26th, record, while the Dow stands -6% short of its closing peak from earlier in the year.

This bull market is in its ninth year, and despite being beset by a cavalcade of concerns, appears on the verge of resuming the second-longest run since WWII, as another earnings season gets under way.

This morning, U.S. stock futures are higher while markets were mixed in Europe and Asia.

I ran my routine stock screens last night, and added 2 new stocks to our watch list.

We now have 17 stocks that we will be watching for the next buyable breakout.

One stock in particular is FCFS which is building a base near new highs and above its 50-day moving average.

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

No one has to wait for me to issue any type of alert on the stocks from the watch list. 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 strenght/weakness of the fundamental news that was just released along with the foward-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.