– 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.
7:45 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
U.S. stock futures are pointing higher as European markets opened up.
QUOTE OF THE DAY:
“Every right implies a responsibility; Every opportunity, an obligation, Every possession, a duty.”
– John D. Rockefeller
The Dow Jones industrial average continues holding above the 200-day line, but still remains below the nearby 50-day average.
The S&P 500 and the Nasdaq remain above their 50-day moving average lines with the later closing within 1% of a new high.
For the year to date, the S&P 500 is up +3.2%, while the Dow is down -1.1%. The Nasdaq sports an +11.4% gain so far in 2018.
For weeks, markets have been stuck in a rather tight trading range amid concerns that a global trade war is developing and could weigh on economic growth. For the second week in a row we did not have any new breakouts, yet stocks do remain relatively resilient.
Also of note, Wall Street’s fear index actually receded this past week, The VIX was down by almost 15% and is hovering around 13.73, well below its historical average between 19 and 20.
Chinese markets have had a rough few months, as investors worry about the intensifying trade war with the United States.
This morning, China’s main stock exchange in Shanghai had the best day in two years on Monday, closing +2.5% higher.
I ran my routine stock screens last night, and added 2 new stocks to our watch list.
I also noticed several high-ranked Apparel names setting up or building bases. Stocks such as, COLM, AEO, URBN, and ROST, which already have good ranks.
From a technical perspective – I would like to see each continue to build on their bases. That consolidation-type of price action would also allow their 50-day moving averages a chance to catch up. Then, I could officially add those to our watch list.
We now have 19 stocks that we will be watching for the next buyable breakout.
One stock in particular is QNST (just added last night) which actually broke out on Friday, yet still remains in buyable range – with any further volume-backed gains – up to its MAX BUY PRICE.
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 firstname.lastname@example.org as I would be glad to assist you. _________________________________________________
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. _________________________________________________ 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.