11:01 PM – Sold the last of my AME position this morning as the stock has continued to display bearish technical action. Shares have been forming a series of lower highs and have now triggered another significant technical violation with a break below the 50 DMA.

I did notice that shares staged an impressive positive reversal into the close. However, the stock still needs to reclaim its 10 DMA near $249.80, which remains an important resistance level. A turn-back from that line would be another bearish sign and further confirmation of the developing weakness.

Despite today’s recovery, the technical violations were enough for me to follow the rules and exit the position completely. This freed-up capital for other purchases I made today including CNNE.

James’ Trader’s Tip: A Positive Reversal Doesn’t Erase Previous Weakness

• A series of lower highs can signal deteriorating price strength before a major support level breaks.
• A positive reversal is encouraging, but the stock must reclaim key resistance levels to demonstrate a meaningful technical recovery.
• A turn-back from the 10 DMA following a break below the 50 DMA would add another bearish sign. Follow the technical evidence, not the hope of a recovery.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.

Most traders fail because they rely on:

❌ Opinions
❌ News headlines
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I focus on:

✔ Price
✔ Volume
✔ Support & Resistance
✔ Proven technical rules

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James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts — his most refined and accessible trading system to date.