– 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.
Before the Friday morning selloff, the current rally-run had continued without any signs of considerable weakness. The major averages were gaping up and closing at record highs a day earlier as traders returned optimistically to start the New Year.
After opening with a sharp gap down (~1%) Friday morning, all three of the major averages immediately found support at their respective 10-day lines. Then, each closed the day at least fairly well above their dramatic morning low.
The indexes had last successfully tested their 10-day lines earlier in the week, before jumping again to record highs. Each index has maintained a close above that initial area of support (10 DMA) since all 3-gaped above there on 12/6.
Other somewhat “bullish” factors of Friday’s trading include the stat – of the last 35 BreakOut Alerts at BuyingBreakOuts.com, 8 closed Friday with a gain of more than +1%.
FRIDAY’S GAINERS: LMT +3.6%, BWXT +2.83%, RCII +1.88%, CCOI +1.82%, FCN +1.34%, CASY +1.13%, GOLF +1.08%, and FLT +1.07%.
Also of note, we did see some broader resilience in growth stocks in general, on the session.
We had 14 of our last 35 breakouts remain within -1% of their recently made 52-week price high.
Examples include some of the stocks above, plus these 8:
There were also 2 fresh BreakOut Alerts on Friday.
First, there was LMT which gaped open on the killing of a prominent Iranian terrorist. So, the breakout does have the caveat of being news-driven. We’d much rather see a stock break out on non-news, like what became the case later that afternoon with FCN. Shares of the consulting leader steadily traded higher up to and then above the stock’s posted TRIGGER PRICE of $114.52.
The market closed Friday down less than -1% with the Dow off -234, the Nasdaq losing -71, and the S&P giving up -23 points on the day.
Overall, Friday’s market action may not have been as bad as it seemed, however, we should still be cautious going into the first full trading week of 2020.
Here’s what to do…
If the current rally continues plowing ahead, and breakouts remain buyable, there is a complete watch list ready with specific buy points on the new Premium Members page.
We must keep in mind that all of Friday’s positives can be negated in a signal session.
The markets are likely to become more volatile over the next week. We have a market that has just made a sharp run to new highs, and is very extended. Plus, there is the added seriousness of growing geopolitical tension with the US/Iran conflict currently unfolding this weekend.
Investors who hold positions should be especially prepared and aware, starting Monday.
Over the weekend, take time to first analyze each of your holdings one by one on a technical basis. Define clear areas of support and resistance for each. Good support areas will be where a stock may hold and then trade higher, or break below and trigger a SELL signal.
Observing technical resistance levels such as a moving average, previous highs or a downward trendlines and how your stock trades near those is one way you can gauge your stock’s strength. If your stock can not break above those levels, especially in a good market, that would be a concern. Whereas, a break above that resistance would, of course, be positive.
Finally, check the past couple of weeks of your stock’s daily price/volume comparisons with the rule of thumb of – price up on volume increase = GOOD, price down on volume increase = BAD. However, one BAD day does not conclude selling a stock, but a series of more BAD days then GOOD clearly could.
Once you have determined each of your holding’s technical situation you can then generally sort your entire trading portfolio from the technically strongest stocks to the weakest. Be prepared to pare accordingly if things start to get ugly.
Take it on a stock-by-stock basis and check your stocks throughout the trading day. Note not only the 1) price change, but 2) the volume, and also 3) its current price relation to the support and resistance you had previously pin-pointed.
NOTE: If you’ve bought any of the 35 BreakOut Alerts that were issued over the past 2 months, then most of this work (outlined above) has already been done for you at the new Premium Members page.
Have you seen the new BuyingBreakOuts.com Premium Members page ?
The new Premium Members page now features the current high-ranked watch list, all BreakOut Alerts, charts of the past 30-days of breakouts, and now our latest feature – StockNotes.
All stocks are now presented with more data points – and are updated continuously throughout the trading day.
Each stock is featured with an annotated chart – showing support levels and other specific trading criteria that is updated nightly.
See the latest watch list additions that are near a breakout, follow the ongoing chart analysis and updated support levels for your holdings.
We also have a new, faster BreakOut Alerts system, – alerts are now available as a text message to your cell phone.
This weekend is the final weekend of our Holiday Deals where you can receive ongoing access to the new Premium Members Page at a huge discount.
Upgrade your membership today with our New Year 2020 Deals, never-to-be-offered lower, subscription rates below.
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FOLLOW THESE 3 SIMPLE STEPS TO SUCCESS
STEP 1: Get signed up today. (see below)
STEP 2: Review our watch list of high EPS and RS ranked stocks. About 5 – 10 stocks which looked poised to breakout.
STEP 3: Set your own alerts or place your trade orders for those stocks you like, or receive our BreakOut Alerts! These alerts are emailed and sent via text message to you every time a stock from that watch list breaks out.
Simple as that.
Your new membership will include…
Stock Watch List – Emailed Each Market Morning
– A concise stock watch list that is updated daily of handpicked high EPS and RS ranked stocks that looked poised to breakout. This list will also be emailed to you each market morning.
Today’s WatchList & Buyable BreakOuts – Members Page
– A list of high ranked EPS and RS stocks that are currently on the watch list or breaking out and triggering buy signals.
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We typically feature about 5 – 10
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About the Site’s Founder
For more than 8 years James had served as Editor-in-Chief an 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 nor buyingbreakouts.com 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.