– 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.
8:45 AM – MORNING MARKET UPDATE & WATCH LIST
NOTE: Today’s watch list can be found here.
Yesterday, the Dow gained +1.4%, while the S&P 500 added +0.9% and the Nasdaq advanced +0.7%.
QUOTE OF THE DAY:
“Formula for success: rise early, work hard, strike oil.”
– J. Paul Getty
This morning, European markets opened higher, following a positive session in Asia.
London’s stock market actually opened an hour behind schedule following a rare trading outage in one of the world’s busiest financial centers.
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I’ve been running my trusty stock screens, actually several times a day, yet with the recent bullish market action, most stocks have already broke out of their bases or are extended with no base to buy from.
With that being said, I did add 1 new stock to our watchlist – somewhat in a untraditional fashion as a TrendLine SetUp for current members only – here.
We now have a total of 15 stocks which we will be watching for a buyable breakout. (You can now register for complete website and current watch list access here.)
Of those, PVH actually broke out above its TRIGGER PRICE yesterday. Volume came in at above average, yet by only a +6% increase.
ENV jumped back above it 50-day moving average on Wednesday. Volume could have been a bit better, still +29% is decent.
INXN, CBRE, and PRLB – each with their solid ranks – are setting up to potentially breakout, while JWA is already above its TRIGGER PRICE, and we’re just watching for continued gains with volume to confirm.
As of this morning, CBRE has an updated TRIGGER PRICE of $48.54, which is .10 cents above the high of the current base.
After breaking out in early November, FLT ran from $165 to $214 in 3 months. That advance had gotten the stock “too extended” from its 200-day moving average. What followed was abrupt pullback in early Feb. Since, shares have recovered and have built a solid base of consolidation. This sideways traded action – of the past 4 months has helped the stock’s 200 DMA catch up.
Chart courtesy of stockcharts.com – Click chart to enlarge.
No one has to wait for me to issue any type of alert on the following stocks. 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.