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 1: As I have continuously stated – It all starts with building a watch list. This goes for whichever trading or investing methodology you decided to use. I strongly advocate, that no matter the current market conditions, you run stock screens daily and maintain a watch list.

For me, I couldn’t imagine trading or investing without a watch list.

I currently maintain, update, and monitor three watch lists on a daily basis.

A watch list will tell you which stocks to buy (based on your selected methodology of course), and also when to buy. So you’ll known what to do, and when to do it just by building and monitoring your watch list.

The investing method I’ve chosen to follow is based on a famous 50-year study of the market’s biggest winners. This study found that the stocks which made the biggest gains, all had the same characteristics before they made their tremendous moves.

Each day, I am looking for stocks in today’s marketplace that have those same winning characteristics.

From those I build a watch list. When a stock breaks out, it’s a BUY. It can be a day-trade, swing-trade, or a longer-term investment.

So, please stop guessing, or going on hunches, or haphazardly investing based on random tips from TV, friends, your barber, or social media.

Get disciplined. Pick your methodology, one that you are passionate about. Really. Then build a watch list.

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	$23.21	08-03-16	08-11-16	$ 23.31	-0.43%
CDK	$58.44	08-01-16	08-03-16	$ 58.27	+0.29%
PCTY	$45.54	08-03-16	08-03-16	$ 45.99	-0.98%
CDW	$45.29	08-01-16	08-03-16	$ 43.22	+4.79%
BMCH	$19.75	07-20-16	07-25-16	$ 20.09	-1.69%
IEX	$92.32	07-20-16	07-20-16	$ 87.28	+5.77%
EBIX	$55.21	06-14-16	07-11-16	$ 50.03	+10.35%

 *prices and %P/L as of Friday’s (8/12) close.

Below is a detailed update on the first breakout we had in the past 31 days which occurred on July 11th.

I will update the remain six breakouts, one each day this week, as part of a 7-part series.

Also included will be a daily brief summary lesson from my 7-Day Comprehensive Study Course. Today, I talked about building a watch list (above).

#1 Ebix Inc. (EBIX – Nasdaq)

Ebix, Inc. provides on-demand software and e-commerce solutions for the insurance industry.

This stock was added to the Technical SetUps WatchList and emailed out in the Stock WatchList Morning Update on June 14th as I found it had solid ranks, good fundamentals and was building a base of consolidation near new price highs while trading above its 50-day moving average.

As I have continuously stated – I consider this “technically ideal” as once the stock breaks out, there is then no resistance in the way of further possible gains, while in the event of a pullback there is sound support (50 DMA) just below the BUY PRICE.

Shares of EBIX broke out July 11th in fine fashion as they traded up +6% with a +135% increase in volume.

That morning, as the stock crossed above my TRIGGER PRICE of $50.02, I issued one of my “BreakOut Alerts!” at 9:44 AM to be emailed out to all subscribers. These alerts are free, and you can sign up to receive them here.

SYMBOL	LAST	ADDED TO WATCH LIST	BREAKOUT DATE	BREAKOUT PRICE
EBIX	$55.21	06-14-16	07-11-16	$50.03

1st SUPPORT	2nd SUPPORT	MAX STOP LOSS GUIDE	EARNINGS	CURRENT % GAIN/LOSS
$54.25	50 DMA	$46.03	08-08-16	+10.35%

Charts courtesy of StockCharts.com  Prices and %P/L as of Friday’s (8/12) close.

 

This leader closed its breakout day at the session highs and at a new-all time high.

There were some welcomed follow-through gains the next day, with nearly the same accumulation rate, and that is what I like to see.

For the next two and a half weeks shares then traded in a rather tight range as volume rates dropped to about half the norm.

This was the case until 8/2 when there was a somewhat abrupt pullback to our 1st SUPPORT, which was then the 50-day moving average.

The stock bounced from there with more gains backed with volume conviction.

This had helped the stock maintain its “A” Accumulation/Distribution rank.

There was of course some expected volatility around 8/8 as the company announced earnings, yet again shares held support, then went on to make more new highs.

Trading was quiet for the later-half of this past week, and at this point any above average volume declines would the first thing to watch out for.

There may be some initial support at the highs of the most recent base, near $54.25. So, that is where our 1st SUPPORT has been moved up to.

However, the rising 50-day moving average (currently at $50.56) is not too far behind, and that would be a more logical place for the stock to again be properly tested.

My MAX LOSS GUIDE (BP x 0.92) for this trade is at $46.03.

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 EBIX ?

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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