Over the past 31 days, from July 11th – Aug 11th we have had a total of 7 stocks break out from our daily Stock WatchList Morning Update. That report is emailed out each market morning before the open. It contains my watch list of high-ranked, fundamentally sound stocks that are setting up in bullish technical bases of consolidation, and which looked poised to breakout.

For each stock in that watch list, I set specific “trading criteria”, including a TRIGGER PRICE. If a stock breaks out above its TRIGGER PRICE, I issue a BreakOut Alert to all subscribers via email. Stocks which trigger BreakOut Alerts are considered BUYs, and then are moved into the PORTFOLIO where each is monitored for SELL signals.

DAY 2: Now That You Are in – Now What ?

You’ve been building a watch list.

A stock from that watch list broke out with volume, became a BUY, now it’s in your portfolio.

Now what? – Continue to grade using the “3 Pillars of Analysis“ from my 7-Day Comprehensive Study Course.

But first…

UPDATE YOUR TRADING CRITERIA

Of course you no longer need TRIGGER PRICE, TRIGGER VOLUME, and MAX BUY PRICE.

Now, add the following to each BUY.

1) 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, it then becomes support in the event of a pullback.

2) 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.

3) MAX STOP LOSS: Using the formula shown in the diagram above you will set this criteria at -8% below your BUY PRICE. However, this is a guide, and I do not recommend setting a SELL STOP order with your broker for that price.

Every BreakOut We Have Had From the Stock WatchList Morning Update – The Past 31 Days

Below are the 7 stocks which broke out from my Technical SetUps WatchList, which is included in the Stock WatchList Morning Update, over the 31 day period from 7/11 – 8/11.

If you bought any of these, or just want to learn more about how my investing system works, please do yourself a favor and take a few minutes to continue to read this concise yet informative and even educational report.

SYMBOL	LAST	ADDED TO WATCH LIST	BREAKOUT DATE	BREAKOUT PRICE	CURRENT % PROFIT/LOSS
YNDX	$23.41	08-03-16	08-11-16	$ 23.31	+0.43%
CDK	$58.82	08-01-16	08-03-16	$ 58.27	+0.94%
PCTY	$45.34	08-03-16	08-03-16	$ 45.99	+0.76%
CDW	$45.28	08-01-16	08-03-16	$ 43.22	+4.77%
BMCH	$20.19	07-20-16	07-25-16	$ 20.09	+0.50%
IEX	$92.95	07-20-16	07-20-16	$ 87.28	+6.50%
EBIX	$55.98	06-14-16	07-11-16	$ 50.03	+11.89%

 *prices and %P/L as of Monday’s (8/15) close.

Below is a detailed update on the second breakout we had in the past 31 days which occurred on July 20th.

I will update the remaining five breakouts, one each day this week, as part of a 7-part series. Day one (EBIX) is here.

Also included will be a daily brief summary lesson from my 7-Day Comprehensive Study Course.

Today, I talked about updating your trading criteria once a stock becomes a BUY. (above).

#2 IDEX Corporation (IEX – NYSE)

IDEX Corporation, through its subsidiaries, provides various pumps, flow meters, other fluidics systems and components, and engineered products worldwide.

I found this stock while running my early morning stock screens on 7/20. From a technical perspective, who could not notice the above average volume gains the stock made that day, along with a close at the session highs. This stock looked poised to “follow-through” that same morning.

Of course the company had good ranks and solid fundamentals, so I added to the Technical SetUps WatchList and included in that day’s Stock WatchList Morning Update that was emailed out to all subscribers at 7:35 AM.

IEX broke out later that morning and once the volume looked liked it was going to confirm a BUY signal, I issued a BreakOut Alert for IEX at 10:44 AM.

These alerts are free, and you can sign up for them here.

SYMBOL	LAST	ADDED TO WATCH LIST	BREAKOUT DATE	BREAKOUT PRICE
IEX	$92.95	07-20-16	07-20-16	$87.28

1st SUPPORT	2nd SUPPORT	MAX STOP LOSS GUIDE	EARNINGS	CURRENT % GAIN/LOSS
50 DMA	$80.00	$80.30	08-08-16	+6.50%

Charts courtesy of StockCharts.com

Shares did pull back for the next three sessions, yet volume was well below the normal rate and actually less than half when compared to the breakout volume.

As my regular reader known – what we always do in the event of a pullback is to see how shares behave if they meet support. IEX held 1st SUPPORT, which was as it usually is, the highs of the previous base at near $87.

On 7/26 the stock started trading higher from there, in a steady uptrend.

At this point, the first thing we want to keep an eye out for are any above average volume declines, or a break down out of that uptrend.

There is no sound support until the 50-day average which is currently back near the BUY PRICE at $86.46.

This is how I do it.

Want to start receiving my morning watch list of high-ranked, fundamentally sound leaders which are setting up in bullish technical bases like IEX?

Then sign up today for my – Stock WatchList Morning Update – here.

If anyone needs any additional information, please let me known, as I would be glad to assist you.

Have Any Questions or Concerns ?

If you would like to schedule a phone appointment with me to answer any questions, address any concerns, or discuss the services I offer for self-directed investors, you can do so by using my appointment setter program here.

I talk to investors and traders on a regular basis, and I am always glad to help.

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